Determinants of Technical Efficiency of Coffee Production in Jimma Zone, South West Ethiopia

Agriculture has been and continues to assume center stage in the economic policy of Ethiopia. Coffee is one of the most vital sources of income for many coffee growers and continues to be still the leading export commodity in the national economy of Ethiopia. Despite the economic use, the productivity and quality of the coffee is unsatisfactory. Adoption of coffee yield-enhancing technical efficiency is key in improving coffee productivity and quality. Therefore, this study aims to investigate determinants that influence the technical efficiency of coffee yield in Jimma Zone, South west Ethiopia. The primary data was collected among 398 coffee growers in research locations during 2020/21 season. Descriptive statistics and econometric methods were developed for the data analysis. The estimated average value of technical, allocative, and economic efficiencies was 82.63%, 78.35%, and 74.65% respectively, which shows the existence of inefficiency in coffee yield in the Jimma Zone. The findings of OLS regression indicated that technical inefficiency is affected by age, sex, education status, landholding, livestock holding, credit uses, extension uses, off-farm activity, land ownerships, seed, and variety of coffee planted. Coffee yield technical efficiency was associated with a significantly higher coffee yield and per capita annual income of coffee cultivator. Concerned bodies should give important attention to coffee yield enhancing technical efficiency which is base for improving yield. The summary of this coffee yield technical efficiency by policymakers and plan designers could bring better enhancement to the coffee cultivator in the study area