Technical Efficiency and Marketing Performance of Turmeric Production

Abstract The study’s major purposes were to assess technical efficiency, determine its causes, and measure the marketing performance of turmeric production in the Sheko and Yeki areas. A two-stage random sampling approach was used to select 300 households. Cobb-Douglas and Tobit model were used to investigate efficiency levels and determinants. As a result, the average technical efficiency was 73.72. The average technical efficiency suggests that it was possible to raise turmeric production by 26.28 percent without utilizing additional inputs. Land, labor, oxen, seeds, herbicide, and urea all had a big impact on how much turmeric was produced. The Tobit model revealed that gender, age, household size, the number of plots, and market information substantially impacted technical efficiency. The structure conduct performance model was used to evaluate the performance of the Turmeric market. The findings showed that the markets for Turmeric in the region were non-competitive, with concentration ratios at the Sheko and Tepi markets of 78.5 and 64.2%, respectively. Policies aimed at motivating and strengthening the existing agricultural extension system, and providing appropriate marketing information, is required to improve Turmeric’s efficiency and Marketing performance.