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Economic Efficiency of Tomato Production in East Shewa Zone, Oromia Region, Ethiopia

Received: 10 March 2022    Accepted: 8 April 2022    Published: 20 April 2022
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Abstract

Tomato is one of the major vegetables in Ethiopia experienced massive productivity growth especially central rift valley. Nevertheless, farmers are struggling to find out optimal input combination in their farm that causes inefficient input use as result of Tomato production in the study area was chemical intensive and resource poor farmers out of production. This study investigated Economic Efficiency of Tomato Production in East Shewa Zone, Oromia Region, Ethiopia. A three stage random sampling procedure was used to select 94 sample Tomato producer households from Lume, Dugda and Bora districts. Semi-structured questioners used to collect data from producers. Focal group discussion and key informant interview also used to supplement the data collected from producers. The A stochastic production frontier function was fitted to the sample households. The result revealed that the mean TE, AE and EE was about 54.82%, 92.22% and 50.62% respectively. The result of tobit model on factors affecting technical and economic efficiency revealed that Tomato farming experience and extension contact were found to be positively and significantly affect Tomato technical and Economic efficiency. While Distance to farmers from farmers training center affect it negatively and significantly. District office of Agriculture, stockholders and concerned bodies should focus on farmers experience sharing, providing technical support and farmers practice contribute to the improvement in efficiency of Tomato producer farmers in the study area.

Published in Journal of Business and Economic Development (Volume 7, Issue 2)
DOI 10.11648/j.jbed.20220702.11
Page(s) 38-45
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), 2022. Published by Science Publishing Group

Keywords

Efficiency, East Shewa, Frontier Model, Tobit Model

References
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[3] EHDA (Ethiopian Horticulture Development Agency), 2011. Exporting fruit and vegetable from Ethiopia. Assessment of development potentials and investment options in the export-oriented fruit and vegetable sector. Addis Ababa, Ethiopia, PP. 51.
[4] Central Statistical Agency (CSA), 2017. Statistical report on area and production of Crops. report, Vol. I,. Addis Ababa, Ethiopia.
[5] ATA and USAID, n.d. Investment Support Program Featured Insights on Investing in Ethiopian Agriculture.
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[7] Jema Haji, 2008. Economic efficiency and marketing performance of vegetable production in the Eastern and Central Parts of Ethiopia. Doctoral Thesis, Swedish University of Agricultural Sciences, Uppsala.
[8] CSA (Central Statistical Agency).2021. The Federal Democratic Republic of Ethiopia Central Statistical Agency Agricultural Sample Survey 2020/21 (2013 E.C.) Volume I Report on Area and Production of Major Crops. Addis Ababa, Ethiopia.
[9] ZOANR (Zonal Office of Agriculture and Natural Resource). 2019. Reports of East Shewa Zone office of agriculture, Adama, Ethiopia.
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[11] Coelli, T., 1995. Recent Development in Frontier Modelling and Efficiency Measurement. Australian Journal of Agricultural Economics, 39: 219-245.
[12] Kirkley, E., Squires, D., Strand, E., 1995. Assessing Technical Efficiency in Commercial Fisheries: The Mid-Atlantic Sea Scallop Fishery. American Journal of Agricultural Economics, 77: 686–97.
[13] Arega, D., Rashid, M. H., 2005. The Efficiency of Traditional and Hybrid Maize Production in Eastern Ethiopia: An Extended Efficiency Decomposition Approach. Journal of African Economics, 15: 91-116.
[14] Sharma, K., Leung, R, Zaleski, M., 1999. Technical, Allocative and Economic Efficiencies in Swine Production in Hawaii: A Comparison of Parametric and Nonparametric Approaches. Agricultural Economics, 20: 23-35.
[15] Farrell, M. J. 1957. The measurement of productive efficiency. Journal of Royal Statistical Society, (A) 120: 253-290.
[16] Green, W., 1991. LIMDEP: Usersʹs Manual and Reference Guide, New York: Econometric Software, Inc.
[17] Tobin, J., 1958: Estimation of relationships for limited dependent variables. Econometrica, 26 (1): 26-36.
[18] CSA (Central Statistical Agency). 2014b. Agricultural sample survey 2013/2014: Volume IV – Report on land utilization (Private peasant holdings meher season). Statistical Bulletin number 446, Addis Ababa, Ethiopia.
[19] Abdulkadir K. O., 2015. An evaluation of the efficiency of onion producing farmers in irrigated agriculture: Empirical evidence from Kobo district, Amhara region, Ethiopia. International Journal of Agricultural Extension and Rural Development, Vol. 2 (5), pp. 116-124.
[20] Desale Gebretsadik. 2017. Technical, Allocative and Economic Efficiencies and Sources of Inefficiencies a mong Large-scale Sesame Producers in Kafta Humera District, Western Zone of Tigray, Ethiopia: Non-parametric approach. International Journal of Scientific & Engineering Research Volume 8, Issue 6,
[21] Nanii Yenihebit, Isaac Abunyuwah and Evelyn Delali Ahiale. 2019. An efficiency assessment of irrigated tomato (Solanum lycopersicum) production in the Upper East Region, of Ghana. Journal of Development and Agricultural Economics Vol. 12 (1), pp. 1-8 DOI: 10.5897/JDAE2019.1090.
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  • APA Style

    Asfaw Negesse Senbeta, Yasin Esmael Ahmed, Shimalis Gizachew, Beriso Bati Bukul. (2022). Economic Efficiency of Tomato Production in East Shewa Zone, Oromia Region, Ethiopia. Journal of Business and Economic Development, 7(2), 38-45. https://doi.org/10.11648/j.jbed.20220702.11

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    ACS Style

    Asfaw Negesse Senbeta; Yasin Esmael Ahmed; Shimalis Gizachew; Beriso Bati Bukul. Economic Efficiency of Tomato Production in East Shewa Zone, Oromia Region, Ethiopia. J. Bus. Econ. Dev. 2022, 7(2), 38-45. doi: 10.11648/j.jbed.20220702.11

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    AMA Style

    Asfaw Negesse Senbeta, Yasin Esmael Ahmed, Shimalis Gizachew, Beriso Bati Bukul. Economic Efficiency of Tomato Production in East Shewa Zone, Oromia Region, Ethiopia. J Bus Econ Dev. 2022;7(2):38-45. doi: 10.11648/j.jbed.20220702.11

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  • @article{10.11648/j.jbed.20220702.11,
      author = {Asfaw Negesse Senbeta and Yasin Esmael Ahmed and Shimalis Gizachew and Beriso Bati Bukul},
      title = {Economic Efficiency of Tomato Production in East Shewa Zone, Oromia Region, Ethiopia},
      journal = {Journal of Business and Economic Development},
      volume = {7},
      number = {2},
      pages = {38-45},
      doi = {10.11648/j.jbed.20220702.11},
      url = {https://doi.org/10.11648/j.jbed.20220702.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20220702.11},
      abstract = {Tomato is one of the major vegetables in Ethiopia experienced massive productivity growth especially central rift valley. Nevertheless, farmers are struggling to find out optimal input combination in their farm that causes inefficient input use as result of Tomato production in the study area was chemical intensive and resource poor farmers out of production. This study investigated Economic Efficiency of Tomato Production in East Shewa Zone, Oromia Region, Ethiopia. A three stage random sampling procedure was used to select 94 sample Tomato producer households from Lume, Dugda and Bora districts. Semi-structured questioners used to collect data from producers. Focal group discussion and key informant interview also used to supplement the data collected from producers. The A stochastic production frontier function was fitted to the sample households. The result revealed that the mean TE, AE and EE was about 54.82%, 92.22% and 50.62% respectively. The result of tobit model on factors affecting technical and economic efficiency revealed that Tomato farming experience and extension contact were found to be positively and significantly affect Tomato technical and Economic efficiency. While Distance to farmers from farmers training center affect it negatively and significantly. District office of Agriculture, stockholders and concerned bodies should focus on farmers experience sharing, providing technical support and farmers practice contribute to the improvement in efficiency of Tomato producer farmers in the study area.},
     year = {2022}
    }
    

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  • TY  - JOUR
    T1  - Economic Efficiency of Tomato Production in East Shewa Zone, Oromia Region, Ethiopia
    AU  - Asfaw Negesse Senbeta
    AU  - Yasin Esmael Ahmed
    AU  - Shimalis Gizachew
    AU  - Beriso Bati Bukul
    Y1  - 2022/04/20
    PY  - 2022
    N1  - https://doi.org/10.11648/j.jbed.20220702.11
    DO  - 10.11648/j.jbed.20220702.11
    T2  - Journal of Business and Economic Development
    JF  - Journal of Business and Economic Development
    JO  - Journal of Business and Economic Development
    SP  - 38
    EP  - 45
    PB  - Science Publishing Group
    SN  - 2637-3874
    UR  - https://doi.org/10.11648/j.jbed.20220702.11
    AB  - Tomato is one of the major vegetables in Ethiopia experienced massive productivity growth especially central rift valley. Nevertheless, farmers are struggling to find out optimal input combination in their farm that causes inefficient input use as result of Tomato production in the study area was chemical intensive and resource poor farmers out of production. This study investigated Economic Efficiency of Tomato Production in East Shewa Zone, Oromia Region, Ethiopia. A three stage random sampling procedure was used to select 94 sample Tomato producer households from Lume, Dugda and Bora districts. Semi-structured questioners used to collect data from producers. Focal group discussion and key informant interview also used to supplement the data collected from producers. The A stochastic production frontier function was fitted to the sample households. The result revealed that the mean TE, AE and EE was about 54.82%, 92.22% and 50.62% respectively. The result of tobit model on factors affecting technical and economic efficiency revealed that Tomato farming experience and extension contact were found to be positively and significantly affect Tomato technical and Economic efficiency. While Distance to farmers from farmers training center affect it negatively and significantly. District office of Agriculture, stockholders and concerned bodies should focus on farmers experience sharing, providing technical support and farmers practice contribute to the improvement in efficiency of Tomato producer farmers in the study area.
    VL  - 7
    IS  - 2
    ER  - 

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Author Information
  • Department of Socio-economics Oromia Agricultural Research Institute Adami Tulu Research Center, Batu, Ethiopia

  • Department of Socio-economics Oromia Agricultural Research Institute Adami Tulu Research Center, Batu, Ethiopia

  • Department of Socio-economics Oromia Agricultural Research Institute Adami Tulu Research Center, Batu, Ethiopia

  • Department of Socio-economics Oromia Agricultural Research Institute Adami Tulu Research Center, Batu, Ethiopia

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