Economics of Groundnut Production in East Hararghe Zone of Oromia Regional State, Ethiopia

Abstract

Groundnut is one the five widely cultivated oilseed crops in Ethiopia. However, the subsector has been overlooked yet by development program interventions and analysis of its technical as well as economic is lacking far behind. Hence, this study presents of groundnut production in East Hararghe zone of Oromia regional state. It focuses on technical relationships between groundnut output and different inputs, economic resources use efficiency and cost benefit analysis. The result for the generated from 86 randomly sampled groundnut farm households at different stage by means of structured and semi-structured questionnaire. From the total of seven explanatory variables to be estimated by using Cobb-Douglas function, quantity of seed labor and livestock in tropical livestock unit were significant at different significance level and they showed positive effect on groundnut output. The economic efficiency of resource used showed the seed, fertilizer and labor were underutilized and land was over utilized.