Economic efficiency of faba bean production in the case of Dembecha and Debre Elias districts, Amhara region, Ethiopia : a stochastic frontier approach

Details

Supervisors

Gaspart, Frédéric

Faculty

Faculté des bioingénieurs

Degree label

Master [120] en sciences agronomiques et industries du vivant, à finalité spécialisée: Agricultural, Food and Environmental Policy Analysis

Abstract

This study analyzed the economic efficiency of Faba bean production in Dembecha and Debre Elias districts using 147 sample Faba bean producing households in 2021/22 production year with the aim of analyzing the levels of technical, allocative and economic efficiency and to analyze the determinant factors affecting the production efficiency of Faba bean. According to the stochastic production and cost frontier model, the level of technical, allocative, and economic efficiency found to be 71.37%, 88.40%, and 63.21% respectively. This implies that there is still a room to improve the efficiency of Faba bean production in the study area. The Tobit model result indicated that household size, educational status, and frequency of extension visit had significant and positive effect on the level technical efficiency of Faba bean production. Age of the household head, distance to farmers’ cooperative, and farm ownership found to have significant and negative effect on the allocative efficiency. Furthermore, household size, educational status, and frequency extension contact had a positive and significant effect on the economic efficiency. policy implications and strategies of the government and other concerned bodies should be geared towards those significant factors.