Alemayehu Ethiopia

Technical Efficiency of Coffee Producers in Ethiopia: Stochastic Frontier Approach Alemayehu Ethiopia

Coffee is the main important organic perennial crop in Ethiopia which has enormous contribution in GDP of the country. The organic coffee Arabica of Ethiopia is getting comparative advantage from its export by letting the country to enjoy the scarce hard currency. Among five zones of coffee producing areas in Ethiopia, Jimma is the second most producers. However, the current coffee productivity of Jimma zone couldn?t uphold the countries comparative advantage in coffee production. Being perennial crop, it will take long time to observe the result of applying technological advancement to coffee production with current country?s Economic ability, structural and institutional rigidities. Having considered this and other fundamentals, many researchers have proposed improving technical efficiency of farmers is option less strategy which could increase productivity of crops in Short run. Taking this proposition in to account, the researcher tried to see if there could be a room for productivity improvement in the course of improving technical efficiency of coffee producers.