Research Article Analysis of Determinants of Economic Efficiency in Honey Production in Horo Guduru Zone, Ethiopia: Stochastic Dual Cost Frontier Model Approach Tolesa Tesema 1 and Megersa Adugna 2 1 Wollega University, Department of Agricultural Economics, P.O. ox 38, Shambu, Ethiopia 2 Wollega University, Department of Economics, P.O. ox 38, Shambu, Ethiopia Correspondence should be addressed to Tolesa Tesema; tolesatesema2@gmail.com Received 25 October 2022; Revised 6 January 2023; Accepted 7 January 2023; Published 25 January 2023 Academic Editor: Xinqing Xiao Copyright © 2023 Tolesa Tesema and Megersa Adugna. Tis is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Honey production is generating employment and source of income in the rural area of Ethiopia. However, its productivity was low. Te objective of this study was to measure the economic efciency of honey production in Ethiopia’s Horo Guduru Wollega one and their limiting factors. To achieve the above•mentioned objective, the study employed a survey methodology using a structured questionnaire tool, and the data were collected from 396 households. Both descriptive and econometric data analysis methods are employed. Dual cost was used to measure the levels of economic efciency and the Tobit model to identify the determinants of economic efciency in the study area. In this regard, the analysis relied on a cross•sectional data collected from 396 sample farm households. Te mean economic efciency was 44%. Tis demonstrates that the farmers in the study area have to decrease production cost by 56% to achieve 100% economic efciency level. From the determinants of economic efciency family size, extension services, training, beekeeping experience, and family size are signifcant technical efciency variables for honey producers. Te study suggests policies to address economic inefciencies by increasing the number of hives, extending the best performers’ experience by increasing the frequency of extension contacts on honey production, facilitating and expanding credit service in the study area, making bee forage access simple, and increasing forest coverage on the land area in line with the current policy of Ethiopia. Additionally, since farmers in the study area spend their time guarding the honey from damage by ants and monkeys, labor that utilizes technology must be made available in the study area. 1. Introduction Beekeeping is one of the agricultural activities, which is the maintenance of honeybee colonies, commonly in hives for the production of honey and other purposes [1]. Because it may complement household incomes, food, and healthcare, beekeeping is seen as a key element of sub•Saharan Africa’s livelihood diversifcation [2]. Ethiopia is known for its tremendous variation of agro•climatic conditions and bio• diversity that favored the existence of diversifed honeybee fora and huge number of honeybee colonies [3, 4]. Organic honey products are interesting in this respect due to the sustainable nature of production, their premium prices, and the growing demand for organic products worldwide [5]. Ethiopia’s reputation as a country with abundant apicultural resources is due in part to the high number of native farmers and other people who have been involved in the growth and administration of apiculture for many generations [6]. Tis is primarily due to its fora supporting foraging bees, the presence of a large quantity of honeybee population, ample fresh water, suitable weather and geographical features, and the presence of a large number of native farmers and others engaged in the development and management of apiculture for many centuries which have contributed to Ethiopia’s fame in [7]. Beekeeping is a sustainable and high•potential activity for local communities and especially for the rural poor to gain additional income through nontimber forest products, Hindawi Advances in Agriculture Volume 2023, Article ID 5813388, 7 pages https://doi.org/10.1155/2023/5813388