An evaluation of the efficiency of onion producing farmers in irrigated agriculture: Empirical evidence from Kobo district, Amhara region, Ethiopia

Abstract

This study investigated the determinants of technical, allocative and economic efficiencies among
small-scale onion farmers in North Wollo zone of Amhara National Regional State, Ethiopia. Structured
questionnaires were used to collect data from 200 respondents randomly selected from designated
locations in the study area. A stochastic production frontier function was fitted to the sample
households. The findings revealed that land related factors such as land distance, ownership, and
fragmentation explained much of the technical inefficiencies in addition to other socio-economic
characteristics of farm households (age, market access, training access, years of experience in onion
production, farm income, responsibility and field visit) were found to be significant at different levels of
significance for technical efficiency. The variables that explained allocative efficiency were plot
distance, market access, sources of irrigation water, extension visit, farm income and field visit. Major
determinants for economic efficiency were age of the household, plot distance, fertility, source of
irrigation water, extension visit, experience in onion production, land fragmentation and farm income. It
is therefore suggested that any development intervention program through irrigation should consider
the aforementioned socioeconomic characteristics and determinants of efficiency for success. Tenure
insecurity and land fragmentation also play significant role for farmers to adopt the available
technologies and maximize production on irrigated farms. Likewise, it has shown positive effect on
production inefficiency, calling for the need to think about policies targeting land consolidation at least
with in farms, improving institutional services (extension, market, training, attitude change on credit
utilization), soil management options and increased investment in irrigation services could jointly
contribute to the improvement in efficiency of onion farmers in the study area.