1Department of Agricultural Economics, Adigrat University, Adigrat, Ethiopia
The study assessed potato production efficiency using the stochastic frontier production function. The study also used descriptive statistics to analyze the data. A sample of 120 potato farmers was selected using multistage random sampling techniques. The results showed that farmers used inputs like land, labor, seed, NPS (Nitrogen, Phosphorus, and Sulfur) and Urea fertilizers to produce a potato. On average, these farmers were not economically efficient in producing the crop. The average technical, economic and allocative efficiencies were 91%, 46% and 51%, which meant that the average inefficiency appeared 9%, 54%, and 49% respectively. The result also showed that 18.14 quintals per hectare of yields were lost due to inefficiency. Socio-economic and institutional factors determined efficiency scores. The results suggested that policymaker needs to consider these factors affecting efficiency scores.
Efficiency, Potato production, Stochastic frontier function, Yield gaps
