This study analyzed production efficiency and sources of inefficiency differentials of sesame in Kafta Humera district of Tigray region, Ethiopia. It was specifically aimed to address the research gaps by measuring technical, allocative and economic efficiencies and their sources of inefficiency differentials of sesame in Kafta Humera District. For addressing these objectives this study used primary and secondary data obtained from field survey and desk review. Multistage random sampling technique was used to draw 126 large-scale sesame producers. Applying the Cobb-Douglas functional form the average technical, allocative and economic efficiencies found were 71%, 90% and 64% for large-scale producers. Regarding these producers; education level, frequency of farm visit, experience in sesame production, type of road and credited amount obtained were significant sources of technical, allocative and economic inefficiencies. Distance of farm from residence, ownership of living home and livestock and cooperative membership were also significant sources of technical and economic inefficiencies. Depending on the results found, this study recommend strengthening the introduction of improved seed, mechanized labor substituting technologies and fertility enhancing inputs for improving production level. For improving sesame production efficiency this study recommend; capacitating large-scale producers through strengthening education, strengthening the credit access at affordable interest rate, nearby sesame farm follow up and frequently visiting of their farm with effective farm management will be better. For improving the farm level efficiency of large-scale producers, it is also important to initiate producers to hire certified experts, strengthening the productive utilization of their livestock and their house to earn cash.

Keywords: Cobb-Douglas function, Inefficiency sources, Large-Scale Sesame producers, Kafta Humera, and Production Efficiency