Economic Efficiency of Smallholder Farmers in Tomato Production in BakoTibe District, Oromia Region, Ethiopia

Kifle Degefa *, Getachew Biru,

Abstract

The study is to analyzed tomato production efficiencies and sources of inefficiencies differentials of tomato in BakoTibe district. It was specifically aimed to address the research and development gaps by measuring technical, allocative and economic efficiencies and their sources of inefficiency differentials of tomato in the study area. For addressing these objectives this study used primary and secondary data obtained from field survey and documents review. Multistage random sampling technique was used to draw 113 sample tomato producers. From the result, the coefficient of inputs was 1.96 which is the elasticity of production that represent first stage of new classical production function. Applying the Cobb-Douglas functional form the average technical, allocative and economic efficiencies found were 72.88%, 67.17% and 50.13% for sample tomato producers. Regarding these producers; Age of household head and education level were significant sources of technical, and economic inefficiencies. Family size and experience in tomato were also significant sources of technical and allocative inefficiencies. Sex of household head, frequency of extension visit and training given on tomato management were also significant sources of technical allocative and economic inefficiencies. For improving tomato production efficiency capacitating smallholder tomato producers through strengthening by training and frequently visiting of their farm with effective farm management will be advised.

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