Technical efficiency analysis of bread wheat (Triticum aestivum) production and its determinants in central and southern Oromia region, Ethiopia: stochastic frontiers analysis approach

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Background Enhancing technical efficiency (TE) is a cost-effective pathway to increasing agricultural productivity, particularly in settings where access to modern technologies is limited. This study assesses the level of technical efficiency among wheat producers in central and southern Oromia, Ethiopia, identifies key sources of inefficiency, and quantifies the associated yield gap. Methods Using cross-sectional data from 345 wheat-growing households in the Arsi, West Arsi, and Bale zones, the analysis combines descriptive statistics with stochastic frontier techniques to estimate farm-level efficiency and its determinants. Results The results show that agrochemicals, animal traction, and machinery use are major contributors to wheat output, with evidence that better coordination of traditional and modern inputs can enhance productivity. The mean technical efficiency is 0.62, indicating that wheat output could increase by about 38% if farmers operated at the production frontier. On average, actual yields of 3.40 t ha −1 fall well below the potential frontier yield of 5.45 t ha −1 , implying substantial production losses due to inefficiency. Tractor ownership and cooperative membership significantly improve efficiency, while larger household size and cultivated area are associated with lower efficiency. Conclusion These findings underscore the importance of promoting scale-appropriate mechanization, improving access to complementary inputs, and strengthening farmer organizations to narrow yield gaps and enhance wheat productivity in Ethiopia.

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