Analysis of the technical efficiency of barley production in North Shewa Zone of Amhara regional state, Ethiopia

Inefficiency in barley production is among the challenges to agricultural transformation in Ethiopia. North Shewa zone of Amhara regional state is not exception in this regard. As such addressing inefficiency is among the crucial efforts for agricultural transformation. The objective of the current study was to analyze the technical efficiency of barley production in north Shewa zone of Amhara regional state, Ethiopia. For this purpose 385 farm households were randomly selected from four purposively selected districts in the zone. The one-step maximum likelihood estimation result of the Cobb-Douglas production function result reveals that seed application, DAP fertilizer application, UREA fertilizer application, land under barley production, labor and oxen ownership have a positive and significant effect on barley production. The predicted average technical efficiency score is found to be 85.06 percent implying that given existing input mix and technology it is possible to increase the production of barley on average by 14.94%. The study found that education, non/off farm income, access to market information, access to extension service and tropical livestock unit are found to have a positive and significant effect on the technical efficiency of barley production while distance from the market and marital status (divorced) have a negative significant effect on technical efficiency of barley production. The result suggests that the government should encourage farmers vocational trainings and participation in off/non-farm activities, improve access to market information, access to extension services, livestock ownership and access to market to improve barley production efficiency.