Analysis of resource use efficiency for white cumin production among smallholder farmers empirical evidence from Northwestern Ethiopia: a stochastic frontier approach

Cumin is a flowering plant and the second Ethiopian export spice crop next to ginger. The area coverage, as well as the production of white cumin, is increasing year to year. However, there is a growing gap between white cumin demand and supply in Ethiopia due to its low production and productivity of white cumin. Therefore, this study was aimed to investigate factors affecting the technical inefficiency of white cumin production among smallholder producers in Northwestern Ethiopia. A Semi-structured questionnaire was used to collect the primary data from 228 white cumin producers, who were selected by using a systematic random sampling technique. Moreover, a combination of data analysis methods such as descriptive statistics and the stochastic Cobb-Douglas production frontier model was used to analyze the collected data. The empirical result of the study showed that the mean technical efficiency of white cumin production was 81%. This implies that white cumin producers can boost white cumin output by 19% using the existing level of inputs and technology. The maximum likelihood estimates of the stochastic production model revealed that land, Nitrogen-Phosphate and Sulphate, and urea were statistically and positively affected the production level of white cumin. The positive effect indicates that the lack of these inputs would hamper the production of white cumin. Moreover, the maximum likelihood estimate of the stochastic frontier model coupled with the inefficiency parameters indicated that the age of household head, tropical livestock unit, land fragmentation, and membership of cooperatives were found to be statistically and negatively influence the level of technical inefficiency of white cumin producers, whereas family size, distance to the main road and credit access were found to be statistically and positively influence the level of technical inefficiency of white cumin producers. Hence, the study suggested that the government should strengthen farm cooperatives and construct roads near the residence of producers to improve their efficiency level. Moreover, the district experts should arrange an experience-sharing (which is a proxy variable for age) program to improve the efficiency level of less efficient producers by adopting the best practice of relatively efficient producers.