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IJIRES , IJASM , IJRIES,IJAHVS
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Issues

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Deteminants of Efficiency variation in Milk Production: The Case of Agarfa District, Bale Zone of Oromia National Regional State, Ethiopia

Mosisa Hirpesa; Belaineh Legesse
The objectives of this study were to identify determinants that cause efficiency variation in milk production in the study area. The study used a cross sectional data obtained from a field survey using structured questionnaire from a random sample of 134 smallholder milk producers in Agarfa district, Bale zone of Oromia Regional State. Tobit model were used to identify determinants of technical efficiency variation of the farmers in milk production. The results indicated that there was a significant inefficiency in milk production in the study area and Tobit model revealed negative and significant coefficient of age, education, private grazing land, breed type, training and extension contact. That means as these variables are allowed to increase positively, the probability of efficiency of farmers will improve. On the contrary, the positive sign of land for crop production and distance to water source shows that these variables will affect the efficiency level negatively. Even though TLU, distance to market center and amount of credit is not significant, these variables have positive relationship with efficiency. The results of the study indicated that there was a room to increase the efficiency of milk producers in the study area through policies and strategies directed towards the above mentioned determinants.
Research areas:
Year:
2016
Type of Publication:
Article
Keywords:
Tobit Model; Technical Efficiency Variation; Marginal Effect; Milk Production
Journal:
IJAHVS
Volume:
1
Number:
1
Pages:
16-27
Month:
January
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