Production Efficiency of Sesame Producer Farm Households: The Case of Bench Maji Zone, Southwest Ethiopia

Abstract

Motives: Agricultural sector in Ethiopia is characterized by its poor performance, despite the livelihoods of the large population of the country depends on agriculture. Sesame is an important cash crop and plays vital role in the livelihood of many people in Ethiopia. However a number of challenges hindered the development of sesame sector along with the productivity. Aim: This study attempted to analyze production efficiency of sesame producers in Bench Maji Zone of Southwest Ethiopia. The study used both primary and secondary data sources. Purposive sampling techniques were employed to draw 270 sesame producer farm households. Descriptive statistics and econometric models were used to analyze the data. Results: The estimated stochastic production frontier model indicated that input variables such as inorganic fertilizer, sesame seed, oxen power, labor and chemicals found to be important factors in increasing the level of sesame output in the study area. The result further revealed significant differences in production efficiency among sesame growing farmers in the study area. Applying the Cobb-Douglas functional form the average, technical, allocative and economic efficiencies found are 50.72%, 86.83% and 44.2% for sesame producers, respectively. Also among fourteen variables used in the analysis of determinants, experience in sesame farming, education level, farm income, total cultivated land, social responsibility, frequency of extension contact, participation in off/nonfarm activities, credit, proximity to market and soil fertility were found to be significant sources of technical, allocative and economic inefficiencies of sesame producer farmers. Strengthening education, extension service, credit access at affordable interest rate and accessibility of transport services and motivating farm household to participate different training as well as their experience sharing with other sesame producing farmers improve productivity of sesame production. Therefore, those important socioeconomic and institutional factors which are mentioned above must take into account to improve the productivity of sesame in the study area.