Abstract:
This study aims to analyze the technical efficiency of sorghum production by smallholder
farmers in Konso district, Southern Ethiopia usingcross sectional data collected from a
sample of 124 sorghum producing households during the 2014/15 production season.
Individual levels of technical efficiency scores were estimated using the Cobb-Douglas
functional form, whichwas specified to estimate the stochastic production frontier.The
estimated stochastic production frontier model indicated that input variables such as land
size, fertilizer (Urea and DAP), human labour, oxen powerand chemicals (herbicides or
pesticides) found to be important factors in increasing the level of sorghum output in the study
area. The result further revealed significant differences in technical efficiency among sorghum
producers in the study area. The discrepancy ratio, which measures the relative deviation of
output from the frontier level due to inefficiency was about 90%.The estimated mean levels of
technical efficiency of the sample households was about 69%, which shows existence of a
possibility to increase the level of sorghum output by about 31% by efficient use of the existing
resources. Among the household specific socio-economic and institutional factors
hypothesized to affect the level of technical inefficiency, age, education level, family size,
off/non-farm activities, extension contact, livestock holding, plots distance and soil fertility
statuswere found to be significant in determining the level of technical inefficiency of sorghum
production in the study area.Negative coefficients of education level, family size, off/non-farm
activities, extension contactand soil fertility statusindicates that improvement in these factors
results in a significant decrease in the level of technical inefficiency.Akin, positive coefficients
of age, livestock holdingand plots distancewere found to increasehouseholds’ technical
inefficiency.Hence, emphasis should be given to improve the efficiency level of those less
efficient households by adopting the practices of relatively efficient households in
thestudyarea. Beside this, policies and strategies of the government should be directed
towards the above mentioned determinants.
