Analysis of Tomato and Onion Production Efficiency in Ejersa Lafo District of West Shewa Zone, Oromia National Regional State, Ethiopia

Abstract

Increasing productivity and efficiency in agricultural production could be seen as an important step towards attaining food security. Hence, the study was conducted to identify factors affecting tomato and onion production efficiency in the Ejersa Lafo district of West Shewa zone, Oromia using cross-sectional data obtained from 145 randomly selected sample farm households, which was analyzed using data envelopment analysis and an econometric (Tobit) model. Accordingly, the average TE, AE, and EE of sampled households are 66.2%, 55.4%, and 36.7%, respectively. The tobit model confirmed that family size, total cultivated land and frequency of ploughing positively and significantly affected TE, while distance to the nearest market had a negative and significant effect on TE and the number of livestock owned. Frequency of ploughing and extension contact affected AE significantly and positively, while EE was significantly and positively affected by education level, family size, total cultivated land, frequency of ploughing and access to credit services. However, the distance to the nearest market significantly and negatively affected the EE level of tomato and onion producers. Based on the results gained, the study recommends that improving the above problem can increase farmers’ economic efficiency in the study area.