Estimation of Technical Production Efficiency of Honey UsingStochastic Frontier Production Function

Honey production sector had developed, so the local production increased from only five tons in 1986 to 144 tons in 1996. But, at same period, the consumption increased from 80 to 3500 tons. The decreasing of self sufficiency required developing of studies of honey production efficiency from economic and technical point of view. This study aimed to estimate the technical production efficiency of modern and traditional honey production units. The production function is estimated by using the stochastic frontier production function. The study results showed the relative importance of labor and cells number for modern and traditional honey production units respectively, based on production elasticity estimation. The optimal production level, based on full technical efficiency, reach 786.6 and 179 kg. For modern and traditional honey production units respectively. While the loss of honey production regards the low technical of production efficiency reach 195 and 17.7 kg respectively. The total loss of production at the area of study, 178. Honey production units, was 7415 kg, as a result of technical inefficiency of honey production. It means, the actual production of honey, at study area, would be increased by about 19% of its current level in case of reaching the full technical efficiency of honey production