Economic Efficiency of Turmeric Production: South-Western Ethiopia

Abstract Turmeric is widely grown in the southwestern region of Ethiopia, specifically in Bench-Sheko and Sheka zones. Nevertheless, different evidence shows in terms of productivity it was not satisfactory. The study aimed towards estimate allocative and economic efficiencies levels, to detect factors affecting allocative and economic efficiencies in Sheko and Yeki districts. To conduct this research the data were collected from 360 sample Turmeric producers. Cobb-Douglas, and Tobit models were used to analyze efficiency, and determinate, correspondingly. Accordingly, the average, allocative and economic efficiencies were 60.78% and 44.71, correspondingly. Average allocative efficiency implies a prospect to decrease the cost of inputs by 39.22%. Turmeric yield was certainly and meaningfully affected by area, worker, oxen, Seed, chemicals, plus urea. Tobit regression outcome showed economic efficiency was absolutely and meaningfully influenced by the extension agent interaction, credit utilization, and market information. Strategies focus to inspire, and increase the delivery of credit, support the present farm extension structure, and provide relevant marketing information needed to expand the economic efficiency of turmeric.