Analysis of Technical Efficiency of Haricot Bean Production in Misrak Badawacho Woreda, Hadiya Zone, Ethiopia

Abstract

The study was conducted to assess the technical efficiency of smallholder farmers’ haricot bean production and its determinants, using Cobb-Douglas production function. For this purpose, a cross sectional data was collected for 2014 production year from a random sample of 178 haricot bean producing farmers living in the study area. The empirical result shows that quantity of local seed, improved seed, Di-ammonium phosphate fertilizer, land allocated for haricot bean, labor, and number of draught animals which were used in the production function are the major factors that influence the changes. Results of technical efficiency of haricot bean producers showed a mean value of 78.25% indicating that efficiency in haricot bean production among farmers could be increased by 21.75% through better use of local seed, improved seed, Di-ammonium phosphate fertilizer, land allocated for haricot bean, labor, and number of draught animals in the short run. In addition, results of inefficiency analysis indicates that draught animals ownership, age, extension contact, soil fertility status, and availability of market and price condition of the output were negatively and significantly affect technical inefficiency of haricot bean production implying that improvement in these variables improves technical efficiency. However, total farm size, livestock size, farmer’s involvement in off/non- farm activities, and distance to the nearest main market were positively and significantly affect technical inefficiency showing that these variables have negative influence on technical efficiency.