Technical Efficiency of Smallholder Barley Producers in Ethiopia

This study aimed to measure the level of technical efficiency and sources of inefficiency for barley producers in Ethiopia. Primary data was collected from 626 smallholder farmers using a multi-stage sampling technique. The stochastic frontier model was employed to assess the efficiency level, and the result revealed a mean technical efficiency of 79.24 % and an average productivity of 2.2 tons/hectare. This result implies that the productivity of barley producers is 20.76 % behind the potential, and solving all sources of inefficiencies and proper utilization of the production variables will assure the productivity of barley producers to 2.8 tons/hectare. All the production variables, labor, seed, fertilizer, agrochemicals, oxen power, and plot size showed a positive and significant relation to the barley output. Similarly, the squared values and the interaction between production variables were also the most important variables. The inefficiency model also revealed the importance of adopting improved varieties and access to vocational training. Therefore, this study recommends implementing policies and strategies in favor of technology adoption through arranging vocational training to enhance productivity and transform the agricultural sector.