Determinants of the cost efficiency of Teff production in South Soddo District, Gurage Zone, Central Ethiopia Region, Ethiopia

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Abstract This study examined the determinants of cost efficiency in teff production among smallholder farmers in the South Soddo District of Ethiopia. The primary objectives of this study were to estimate the level of cost efficiency among smallholder teff producers and to identify the factors contributing to their inefficiencies. Using stochastic frontier analysis, the research revealed an average cost efficiency of 89.2% among the sampled households, ranging from 37.2% to 97.4%, indicating a significant variation in cost efficiency. The findings suggest that, on average, farmers could reduce their input costs by 10.8% while maintaining current production levels, highlighting the potential for improved cost efficiency. The stochastic cost frontier analysis provided insights into the influence of various cost variables on production expenses. Land and labour prices were found to have the strongest effect, with elasticities of 0.276 and 0.244, respectively, underscoring their critical role in determining total costs. Seed, oxen, fertilizer, and herbicide prices also contributed significantly, although to a lesser degree. Several key factors were found to influence cost efficiency significantly. The age and education level of the household head, as well as family size, were negatively associated with cost inefficiency, suggesting that older, more educated farmers and larger households tend to increase cost efficiency. Conversely, land fragmentation was positively related to cost inefficiency, indicating that farmers managing multiple, scattered plots face greater challenges in terms of cost efficiency. The findings of this study provide valuable insights that can inform policy interventions and extension service strategies to increase cost efficiency in the teff production sector of the South Soddo District. The recommendations include targeted training programs, promoting agricultural education and knowledge sharing, addressing land fragmentation, and improving access to critical inputs such as land and labour.
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Determinants of the cost efficiency of Teff production in South Soddo District, Gurage Zone, Central Ethiopia Region, Ethiopia | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Determinants of the cost efficiency of Teff production in South Soddo District, Gurage Zone, Central Ethiopia Region, Ethiopia Seid Hussen, Anbes Tenaye This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7934270/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 10 Apr, 2026 Read the published version in Discover Sustainability → Version 1 posted 12 You are reading this latest preprint version Abstract This study examined the determinants of cost efficiency in teff production among smallholder farmers in the South Soddo District of Ethiopia. The primary objectives of this study were to estimate the level of cost efficiency among smallholder teff producers and to identify the factors contributing to their inefficiencies. Using stochastic frontier analysis, the research revealed an average cost efficiency of 89.2% among the sampled households, ranging from 37.2% to 97.4%, indicating a significant variation in cost efficiency. The findings suggest that, on average, farmers could reduce their input costs by 10.8% while maintaining current production levels, highlighting the potential for improved cost efficiency. The stochastic cost frontier analysis provided insights into the influence of various cost variables on production expenses. Land and labour prices were found to have the strongest effect, with elasticities of 0.276 and 0.244, respectively, underscoring their critical role in determining total costs. Seed, oxen, fertilizer, and herbicide prices also contributed significantly, although to a lesser degree. Several key factors were found to influence cost efficiency significantly. The age and education level of the household head, as well as family size, were negatively associated with cost inefficiency, suggesting that older, more educated farmers and larger households tend to increase cost efficiency. Conversely, land fragmentation was positively related to cost inefficiency, indicating that farmers managing multiple, scattered plots face greater challenges in terms of cost efficiency. The findings of this study provide valuable insights that can inform policy interventions and extension service strategies to increase cost efficiency in the teff production sector of the South Soddo District. The recommendations include targeted training programs, promoting agricultural education and knowledge sharing, addressing land fragmentation, and improving access to critical inputs such as land and labour. Cost efficiency Teff production stochastic frontier analysis South Soddo District Ethiopia Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Published Journal Publication published 10 Apr, 2026 Read the published version in Discover Sustainability → Version 1 posted Editorial decision: Revision requested 14 Jan, 2026 Reviews received at journal 14 Jan, 2026 Reviews received at journal 09 Jan, 2026 Reviewers agreed at journal 02 Jan, 2026 Reviews received at journal 01 Jan, 2026 Reviewers agreed at journal 15 Dec, 2025 Reviewers agreed at journal 16 Nov, 2025 Reviewers invited by journal 10 Nov, 2025 Editor invited by journal 05 Nov, 2025 Editor assigned by journal 25 Oct, 2025 Submission checks completed at journal 25 Oct, 2025 First submitted to journal 23 Oct, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. 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