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Analysis of Economic Efficiency of Onion Production Under Irrigation in West Shewa Zone, Oromia, Ethiopia

Received: 24 June 2025     Accepted: 17 July 2025     Published: 18 August 2025
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Abstract

The study was measures efficiencies of Onion Producers under irrigation and identify factors affecting them in in West Shewa Zone, Oromia, Ethiopia. Stochastic production frontier model was used to estimate technical, allocative and economic efficiency levels, whereas Tobit model was used to identify factors affecting efficiency levels. Accordingly, the mean technical, allocative and economic efficiencies of sample households were 74%, 70% and 52%, respectively. Land, seed, herbicide and insecticide, labor and oxen power were positively affected the production of onion. Although, land, seed, herbicide and insecticide were underutilized inputs but labor and oxen power were over-utilized inputs. Results of the Tobit model revealed that land allotted to onion production and credit utilization was affected technical efficiency positively but distance to the FTC was affected technical efficiency negatively. It also revealed that onion production experience, land allotted to onion production, pilot distance, distance to the market were affected allocative efficiency negatively but having own motor pump and extension contact were affected allocative efficiency positively. Besides, Family size, credit utilization and extension contact were positively affected economic efficiency of onion production but pilot distance and distance to the FTC were negatively affected economic efficiency of onion production. Results indicate that there is an opportunity to increase efficiency of onion production under irrigation in the study area. Therefore, zonal and district office of agriculture, stockholders and concerned bodies should focus above mentioned factors to improve the productivity of onion under irrigation.

Published in Science Research (Volume 13, Issue 4)
DOI 10.11648/j.sr.20251304.16
Page(s) 101-111
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), 2025. Published by Science Publishing Group

Keywords

Cost, Determinants, Efficiency Measurement, Functional Form and Resource

References
[1] Aklilu Nigussie, Yitagesu Kuma, Abiy Adisu, Tigist Alemu and Kidane Desalegn. 2015. Onion production for income generation in small scale irrigation users agropastoral households of Ethiopia. Journal of Horticulture, 1-5.
[2] Akinbode, S. O., Dipeolu, A. O and Ayinde, I. A. 2011. An Examination of Technical, Allocative and Economic Efficiencies in Ofada Rice Farming on Ogun State, Nigeria. African Journal of Agricultural Research, 6(28): 6027-6035.
[3] Adino Andaregie 2020. Determinants of technical efficiency of potato farmers and effects of constraints on potato production in Northern Ethiopia.
[4] Aye, G. C. and Mungatana, E. D. 2011. Technological Innovation and Efficiency in the Nigerian Maize Sector: Parametric Stochastic and Non-parametric Distance Function Approaches, Agrekon: Agricultural Economics Research, Policy and Practice in Southern Africa, 50(4): 1-24.
[5] Haregu Gebrezgabher 2015. Efficiency of male and female as irrigated onion growers.
[6] Awol Ahmed. 2014. Economic Efficiency of Rain-fed Wheat producing Farmers in North Eastern Ethiopia: The case of Albuko District. M. Sc. Thesis Presented to the School of Graduate Studies of Haramaya University.
[7] CSA (Central Statically Agency).2019. Area and production of major crops on private peasant holdings, Meher Season in Ethiopia. Volume I.
[8] CSA (Central Statistical Agency). 2015. Agricultural sample survey of Ethiopia. Report on area and production of major cops. Addis Ababa, Ethiopia.
[9] Ermiyas Mekonnen, Endrias Geta and Belaineh Legesse. 2015. Economic Efficiency of Sesame Production in Selamago District of South Omo Zone, Southern Ethiopia. JournalofAgriculturalSciences, 2(1): 8-21.
[10] Essa Chanie, Gideon A. Obare, Ayalneh Bogale, and Franklin P. 2012. Resource Use Efficiency of Smallholder Crop Production in the Central Highlands of Ethiopia.
[11] Food and Agricultural Orgization, World Food Organization 2012; Livelihood Asset.
[12] Greene, W. H. (2003). Econometric Analysis. 5th edition. Pearson education, Inc., Upper Saddle River, New Jersey.
[13] Meftu Abdi, 2016. Economic Efficiency of Groundnut: The Case of Gursum District, East Hararghe Zone, Oromia National Regional State, Ethiopia.
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    Refera, S., Yadeta, G. (2025). Analysis of Economic Efficiency of Onion Production Under Irrigation in West Shewa Zone, Oromia, Ethiopia. Science Research, 13(4), 101-111. https://doi.org/10.11648/j.sr.20251304.16

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    ACS Style

    Refera, S.; Yadeta, G. Analysis of Economic Efficiency of Onion Production Under Irrigation in West Shewa Zone, Oromia, Ethiopia. Sci. Res. 2025, 13(4), 101-111. doi: 10.11648/j.sr.20251304.16

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    AMA Style

    Refera S, Yadeta G. Analysis of Economic Efficiency of Onion Production Under Irrigation in West Shewa Zone, Oromia, Ethiopia. Sci Res. 2025;13(4):101-111. doi: 10.11648/j.sr.20251304.16

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  • @article{10.11648/j.sr.20251304.16,
      author = {Sheleme Refera and Gemechisa Yadeta},
      title = {Analysis of Economic Efficiency of Onion Production Under Irrigation in West Shewa Zone, Oromia, Ethiopia
    },
      journal = {Science Research},
      volume = {13},
      number = {4},
      pages = {101-111},
      doi = {10.11648/j.sr.20251304.16},
      url = {https://doi.org/10.11648/j.sr.20251304.16},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sr.20251304.16},
      abstract = {The study was measures efficiencies of Onion Producers under irrigation and identify factors affecting them in in West Shewa Zone, Oromia, Ethiopia. Stochastic production frontier model was used to estimate technical, allocative and economic efficiency levels, whereas Tobit model was used to identify factors affecting efficiency levels. Accordingly, the mean technical, allocative and economic efficiencies of sample households were 74%, 70% and 52%, respectively. Land, seed, herbicide and insecticide, labor and oxen power were positively affected the production of onion. Although, land, seed, herbicide and insecticide were underutilized inputs but labor and oxen power were over-utilized inputs. Results of the Tobit model revealed that land allotted to onion production and credit utilization was affected technical efficiency positively but distance to the FTC was affected technical efficiency negatively. It also revealed that onion production experience, land allotted to onion production, pilot distance, distance to the market were affected allocative efficiency negatively but having own motor pump and extension contact were affected allocative efficiency positively. Besides, Family size, credit utilization and extension contact were positively affected economic efficiency of onion production but pilot distance and distance to the FTC were negatively affected economic efficiency of onion production. Results indicate that there is an opportunity to increase efficiency of onion production under irrigation in the study area. Therefore, zonal and district office of agriculture, stockholders and concerned bodies should focus above mentioned factors to improve the productivity of onion under irrigation.},
     year = {2025}
    }
    

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  • TY  - JOUR
    T1  - Analysis of Economic Efficiency of Onion Production Under Irrigation in West Shewa Zone, Oromia, Ethiopia
    
    AU  - Sheleme Refera
    AU  - Gemechisa Yadeta
    Y1  - 2025/08/18
    PY  - 2025
    N1  - https://doi.org/10.11648/j.sr.20251304.16
    DO  - 10.11648/j.sr.20251304.16
    T2  - Science Research
    JF  - Science Research
    JO  - Science Research
    SP  - 101
    EP  - 111
    PB  - Science Publishing Group
    SN  - 2329-0927
    UR  - https://doi.org/10.11648/j.sr.20251304.16
    AB  - The study was measures efficiencies of Onion Producers under irrigation and identify factors affecting them in in West Shewa Zone, Oromia, Ethiopia. Stochastic production frontier model was used to estimate technical, allocative and economic efficiency levels, whereas Tobit model was used to identify factors affecting efficiency levels. Accordingly, the mean technical, allocative and economic efficiencies of sample households were 74%, 70% and 52%, respectively. Land, seed, herbicide and insecticide, labor and oxen power were positively affected the production of onion. Although, land, seed, herbicide and insecticide were underutilized inputs but labor and oxen power were over-utilized inputs. Results of the Tobit model revealed that land allotted to onion production and credit utilization was affected technical efficiency positively but distance to the FTC was affected technical efficiency negatively. It also revealed that onion production experience, land allotted to onion production, pilot distance, distance to the market were affected allocative efficiency negatively but having own motor pump and extension contact were affected allocative efficiency positively. Besides, Family size, credit utilization and extension contact were positively affected economic efficiency of onion production but pilot distance and distance to the FTC were negatively affected economic efficiency of onion production. Results indicate that there is an opportunity to increase efficiency of onion production under irrigation in the study area. Therefore, zonal and district office of agriculture, stockholders and concerned bodies should focus above mentioned factors to improve the productivity of onion under irrigation.
    VL  - 13
    IS  - 4
    ER  - 

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