Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia

Yadeta Bedasa

doi:doi:10.11648/j.jim.20200904.13

| Peer-Reviewed

Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia

Yadeta Bedasa

Published in Journal of Investment and Management (Volume 9, Issue 4)

Received: 16 September 2020 Accepted: 28 September 2020 Published: 31 December 2020

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.

Published in	Journal of Investment and Management (Volume 9, Issue 4)
DOI	10.11648/j.jim.20200904.13
Page(s)	107-114
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Efficiency, Smallholder Farmers, Sesame

References

[1]	Abadi G., 2018. Sesame production, challenges and opportunities in Ethiopia. An International Journal of Plant Research, pp. 51-56.
[2]	Abu G. A., Ater P. I. and Abah D., 2012. Profit efficiency among sesame farmers in Nasarawa State, Nigeria. Current Research Journal of Social Sciences, 4 (4), pp. 261-268.
[3]	Afriat S., 1972. Efficiency estimation of production functions. International Economic Review, pp. 568-598.
[4]	Asfaw, M., Geta, E., and Mitiku, F., 2019. Economic Efficiency of Smallholder Farmers in Wheat Production: The Case of Abuna Gindeberet District, Western Ethiopia. Review of Agricultural and Applied Economics, 22 (1340-2019-782), 65.
[5]	ATA (Agricultural Transformation Agency)., 2017. Annual report 2016/17.
[6]	Ayana N. G., 2015. Status of production and marketing of Ethiopian sesame seeds (Sesamumindicum L.): a review. Agric. Biol. Sci. J, 1, pp. 217-223.
[7]	Banker, R. D., Charnes, A. and Cooper, W. W., 1984. Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management science, 30 (9), pp. 1078-1092.
[8]	Barros C. and Mascarenhas M., 2005. Technical and allocative efficiency in a chain of small hotels. International Journal of Hospitality Management, 24 (3), pp. 415-436
[9]	Bradley K., Tatjane H. and Ralph M., 2013. Measuring Technical, Allocative, and Economic Efficiency of Rice Production in Arkansas using Data Envelopment Analysis. University of Arkansas Rice Research and Extension.
[10]	Boere, A., Rutgers, T., Willems, D., Dawit, K., & Dolfen, W., 2015. Business Opportunities Report Oilseeds and Pulses# 5 in the series written for the" Ethiopian Netherlands business event 5-6 November 2015. Rijswijk, the Netherlands, 9.
[11]	Coelli T., 1995. Recent developments in frontier modeling and efficiency measurement. Australian Journal of agricultural economics, 39 (3), pp. 219-245.
[12]	Coelli T., Rao D., O'Donnell C. and Battese G., 2005. An introduction to efficiency and productivity analysis. Springer Science & Business Media.
[13]	CSA (Central Statistical Authority), 2013. Agricultural Sample Survey 2012/2013. Report on Area and Production of Crops (Private Peasant Holdings, Meher Season).
[14]	CSA (Central Statistical Authority)., 2016. Agricultural sample survey. Report on Area and production of major Crops for private peasant holdings, meher season 2015/16.
[15]	CSA (Central Statistical Authority)., 2018. Area, production and yield of crops for private peasant holding for meher season 2017/18.
[16]	Desale G., 2017. Technical, Allocative and Economic Efficiencies and Sources of Inefficiencies among Large-Scale Sesame Producers in Kafta Humera District, Western Zone Of Tigray, Ethiopia. International Journal of Scientific & Engineering Research Volume 8, Issue 6. ISSN 2229-5518.
[17]	ECX (Ethiopian Commodity Exchange Authority), 2018. http://www.ecx.com.et/commodities.aspx#SESAME
[18]	Endrias G., Ayalneh B., Belay K. and Eyasu E., 2013. Productivity and Efficiency Analysis of Smallholder Maize Producers in Southern Ethiopia.
[19]	Fare, R., and Grosskopf, S., 1985. A nonparametric cost approach to scale efficiency. The Scandinavian Journal of Economics, 594-604.
[20]	FAO (Food and Agriculture Organization)., 2015. Analysis of price incentives for Sesame seed in Ethiopia, 2005-2012.
[21]	Farrell M. and Pearson E., 1957. Series A (General). Journal of the Royal Statistical Society. Series A (General), 120 (3), Pp. 253-29.
[22]	FAS (Foreign Agricultural Service)., 2016. Ethiopia’s Oilseed Production Forecast to Increase Despite Drought. Addis Ababa.
[23]	Forsund F., Lovell C. and Schmidt P., 1980. A survey of frontier production functions and of their relationship to efficiency measurement. Journal of econometrics, 13 (1), pp. 5-25.
[24]	Fried H., Lovell C. and Schmidt S., 2008. The Measurement of Productive Efficiency and Productivity Growth. Oxford University Press.
[25]	Getachew K. and Bamlaku A., 2014. Analysis of Technical Efficiency of Small Holder Maize Growing Farmers of Horoguduru Wollega Zone, Ethiopia: A Stochastic Frontier Approach. Sci. Technol. Arts Res. J., July-Sep 2014, 3 (3): 204-212.
[26]	Getachew W., Lemma Z., Bosena T., 2018. Economic efficiency of smallholder farmers in barley production in Meket district, Ethiopia. Journal of Development and Agricultural Economics.
[27]	Hika W., Oliyad S., 2018. Analysis of economic efficiency of sesame production in Babogambel district of West Wollega zone, Ethiopia. Food Science and Quality Management. Vol. 76, 2018. ISSN 2224-6088.
[28]	Ibrahim E., 2017. Economic Efficiency of Sorghum and Millet Production for Small Scale Farmers in Traditional Rain fed, North Kordofan State, Sudan. Turkish Science and Technology.
[29]	John M., 2011. Economic Efficiency of Smallholder Farmers in Coffee Production. The case of Mathira District, Kenya. University of Nairobi, Kenya.
[30]	Lemlem H., 2017. Strategic Analysis of Sesame (Sesamumindicum L.) Market Chain in Ethiopia a Case of Humera District. International Journal of Plant & Soil Science.
[31]	Mekonen, E., Geta, E. and Legesse B., 2015. Production efficiency of sesame in Selamago district of south Omo zone, Southern Ethiopia. Current Research in Agricultural Sciences, 2 (1), pp. 8-21.
[32]	Musa H., Lemma Z. and Endrias G., 2013. Economic efficiency of smallholder farmers in maize production: the case of Arsi negelle district, Oromia national regional state, Ethiopia. A thesis submitted to the school of graduate studies of Haramaya University.
[33]	Musa, H. A., Lemma, Z., & Endrias, G., 2015. Measuring technical, economic and allocative efficiency of maize production in subsistence farming: Evidence from the Central Rift Valley of Ethiopia. Applied Studies in Agribusiness and Commerce, 9 (1033-2016-84288), 63.
[34]	Nani Senayi., 2018. Ethiopia population. www.en.wikipedia.
[35]	NBE (National Bank of Ethiopia)., 2017. Annual report 2016/17.
[36]	Oishimaya Sen Nag., 2017. Top Sesame Seed Producing Countries in the World. https://www.worldatlas.com/articles/world-leaders-in-sesame-production.html
[37]	Russell N. and Young T., 1983. Frontier production functions and the measurement of technical efficiency. Journal of Agricultural Economics, 34 (2), pp. 139-150.
[38]	Sisay D., J. Haji D. Goshu and A. K. Edriss., 2015. Technical, allocative, and economic efficiency among smallholder maize farmers in Southwestern Ethiopia. Journal of Development and Agricultural Economics, Vol. 7 (8): pp 283-292.
[39]	Tadese M., 2017. Performance Evaluation of Sesame Varieties in Lowland Area of South Omo Zone, SNNPR, Ethiopia. International Journal of Research in Agriculture and Forestry. Volume 4, PP 38-41.
[40]	Terefe, G., Wakjira, A., Berhe, M. and Tadesse, H., 2012. Sesame production manual. EIAR and Embassy of the Kingdom of the Netherlands, pp. 1-34.
[41]	Tolesa T., Temesgen K. and Zechariahs Sh., 2019. Economic Efficiency of Smallholder Farmers in Maize Production in Gudeya Bila District, Oromia National Regional State, Ethiopia. Journal of Applied Agricultural Economics and Policy Analysis, 2 (1), 1-7.
[42]	World Bank., 2018. https://www.worldbank.org/en/topic/agriculture/overview.
[43]	Wudineh G. and Endrias G., 2016. Technical efficiency of smallholder wheat farmers: The case of Welmera district, Central Oromia, Ethiopia. Journal of Development and Agricultural Economics. Vol. 8 (2), pp. 39-51.
[44]	Zerihun J., 2012. Sesame Sesamumindicum L. Crop Production in Ethiopia: Trends, Challenges and Future Prospects. Science, Technology and Arts Research Journal.
[45]	Muhammad A., Zainal A., Nolila M. and Abdullahi I., 2016. Analysis of Production Efficiency among Micro-Credit and Non-Credit Smallholder Maize Growers in Nigeria. Australian Journal of Basic and Applied Science. pg: 127-136.
[46]	Kinati, K., 2017. The survey on field insect pests of sesame (Sesamumindicum L.) in east wollega and horoguduru wollega zones, west Oromia, Ethiopia.

Cite This Article

Plain Text BibTeX RIS

APA Style

Yadeta Bedasa. (2020). Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. Journal of Investment and Management, 9(4), 107-114. https://doi.org/10.11648/j.jim.20200904.13

Copy | Download

ACS Style

Yadeta Bedasa. Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. J. Invest. Manag. 2020, 9(4), 107-114. doi: 10.11648/j.jim.20200904.13

Copy | Download

AMA Style

Yadeta Bedasa. Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. J Invest Manag. 2020;9(4):107-114. doi: 10.11648/j.jim.20200904.13

Copy | Download

@article{10.11648/j.jim.20200904.13,
  author = {Yadeta Bedasa},
  title = {Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia},
  journal = {Journal of Investment and Management},
  volume = {9},
  number = {4},
  pages = {107-114},
  doi = {10.11648/j.jim.20200904.13},
  url = {https://doi.org/10.11648/j.jim.20200904.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20200904.13},
  abstract = {The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia
AU  - Yadeta Bedasa
Y1  - 2020/12/31
PY  - 2020
N1  - https://doi.org/10.11648/j.jim.20200904.13
DO  - 10.11648/j.jim.20200904.13
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 107
EP  - 114
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20200904.13
AB  - The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.
VL  - 9
IS  - 4
ER  -

Copy | Download

Author Information

Yadeta Bedasa

Department of Agricultural Economics, Wollega University, Shambu, Ethiopia

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Yadeta Bedasa. (2020). Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. Journal of Investment and Management, 9(4), 107-114. https://doi.org/10.11648/j.jim.20200904.13

Copy | Download

ACS Style

Yadeta Bedasa. Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. J. Invest. Manag. 2020, 9(4), 107-114. doi: 10.11648/j.jim.20200904.13

Copy | Download

AMA Style

Yadeta Bedasa. Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia. J Invest Manag. 2020;9(4):107-114. doi: 10.11648/j.jim.20200904.13

Copy | Download

@article{10.11648/j.jim.20200904.13,
  author = {Yadeta Bedasa},
  title = {Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia},
  journal = {Journal of Investment and Management},
  volume = {9},
  number = {4},
  pages = {107-114},
  doi = {10.11648/j.jim.20200904.13},
  url = {https://doi.org/10.11648/j.jim.20200904.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20200904.13},
  abstract = {The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia
AU  - Yadeta Bedasa
Y1  - 2020/12/31
PY  - 2020
N1  - https://doi.org/10.11648/j.jim.20200904.13
DO  - 10.11648/j.jim.20200904.13
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 107
EP  - 114
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20200904.13
AB  - The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.
VL  - 9
IS  - 4
ER  -

Copy | Download