Wollo University, Department of Agricultural Economics, P.O. Box, Ethiopia
Hussien, H.B., Wollo University, Department of Agricultural Economics, P.O. Box, Ethiopia
The general objective of the study was to calculate the production efficiency of the mixed crop-livestock farmers in two districts of north eastern Ethiopia. Cross-sectional data were used to analyze the performance of mixed crop and livestock production system and determinants of production efficiencies. For this study, a total of 252 farmers were selected using probability proportional to sample size sampling technique. The non-parametric method DEA was employed to measure production efficiency. The non-parametric methods of efficiency measurement indicated that most farmers in the study area were not efficient suggesting that efficiency improvement is one of the possible avenues for increasing agricultural production with available resource and technology. The mean TE, AE and EE of the household calculated from non-parametric approach of Data Envelopment Analysis Variable Returns to Scale (DEAVRS) were 55%, 70% and 40%, respectively. The production efficiency of mixed crop-livestock farming was determined by farm size, livestock ownership, labour availability, off/non-farm income participation, total household asset, total household consumption expenditure and improved technology adoption. This study found that improved agricultural technology adoption increased production efficiency of households. Such actions may, in turn, alleviate the current problem of food insecurity and lead in the long run to economic development.