Analysis of technical efficiency of irrigated onion (Allium cepa L.) production in North Gondar Zone of amhara regional state, Ethiopia

Abstract

Onions are a significant source of revenue and food security for households. Despite their importance in human nutrition, economic benefit, and area coverage, in Ethiopia, onion productivity is significantly lower than it should be. The purpose of this study is to address this gap by examining efficiency variations and determining the variables that affect onion farmers’ levels of efficiency in the North Gondar Zone of Ethiopia. The sources of data were both primary and secondary. 205 onion farmers from the Gondar Zuria, Takusa, and Dembia districts were chosen using simple random sampling proportional to sample size. Semi-structured interviews were used to gather primary data from these participants. A Cobb-Douglass production function, a single-stage stochastic frontier model, and descriptive statistics were used to investigate the technical efficiency of onion production at the farm level. The mean technical efficiency of an irrigated onion was 53%, according to the maximum likelihood estimates of the stochastic frontier analysis. By enhancing agricultural methods using current technology, it is possible to raise the average production efficiency of irrigated onions. The stochastic frontier model’s maximum likelihood estimates revealed that plot size, Di Ammonium Phosphate, and oxen have a significant effect on onion output; education, livestock holding, experience, and frequency of watering have a positive and significant effect on technical efficiency, whereas family size and marketing training have a negative and significant effect on technical efficiency. Therefore, the government or any relevant bodies should deliver continual scheduled training and an integrated adult education at the existing farmers’ training center; modern livestock production techniques; further groundwater resources and proper watering technologies should be used since currently farmers use an inefficient irrigation system, specifically furrow irrigation.