Estimation of Technical Efficiency of Sorghum Production in Dejen District, North-west Ethiopia

Abstract

Ethiopian agriculture is characterized by low productivity due to natural, social, economic, and institutional factors. Farmers with homogeneous resources produce different outputs per hectare due to inefficient utilization of limited resources. There is no due attention given to crop production efficiency issues, particularly in sorghum production. The objective of this study was to assess the level of technical efficiency and its determinant factors on sorghum production in Dejen District, North-west Ethiopia. The two-stage sampling procedure was used to determine the sample size. Data were collected from 192 households using a systematic random sampling technique. A semi-structured questionnaire was used for the data collection. Focus group discussions and key informant interviews were also conducted. Both descriptive statistics and econometric analysis were used for data analysis. The average technical efficiency of Sorghum producers was 62.8%, with a min of 23.5% and a max of 96.7%. About 37.2% of output variation from optimal production was observed in the study area. The estimated Gamma (γ) value was 73.4% indicating the presence of inefficiency. Thus, farmers have a chance to maximize their output level by making efficient use of existing resources and technology