This study established the level of technical efficiency and its determinants among the informal and formal seed potato producers in the southwestern highlands agro - ecological zone of Uganda. A multi- stage sampling procedure was employed to select 636 households (499 informal seed producers and 137 formal seed producers) from which data was collected for two seasons using a semi - structured questionnaire. Data was analyzed using the stochastic frontier approach with a one - step approach. Maximum likelihood estimates for the efficiency parameters showed that both informal and formal seed potato producers were not fully efficient. The mean technical efficiency for informal and formal seed potato producers was 8 1 .4 and 80.4 percent respectively. In terms of yield loss, informal and formal seed potato producers respectively lost an average of 981 and 1,208 kg/acre of seed potato tubers due to inefficiency factors . Specifically, off- farm income source, scale of production, seasonal variation, access to extension services and seed producer being male positively influenced informal seed producers’ technical efficiency while producers’ level of education and seed potato variety diversity negatively influenced their efficiency. For formal seed producers, technical efficiency was influenced positively by producers’ education and negatively by household size. The study suggests that there is an opportunity to improve technical efficiency of informal and formal seed producers by 19 and 20 percent respectively. Therefore, this calls for increased investment in developing and promoting high yielding varieties, provision of extension services, input intensification and addressing gender issues in seed potato production in the context of limited arable land .
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