scholarly journals Estimation of technical efficiency of black cumin (Nigella sativa L.) farming in northwest Ethiopia: a stochastic frontier approach

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Abebe Birara Dessie ◽  
Tadie Mirie Abate ◽  
Betelhem Tsedalu Adane ◽  
Tiru Tesfa ◽  
Shegaw Getu
Keyword(s):  
Technical Efficiency ◽  
Nigella Sativa ◽  
Stochastic Frontier ◽  
Market Price ◽  
Northwest Ethiopia ◽  
Flowering Plant ◽  
Yield Potential ◽  
Stochastic Frontier Model ◽  
Black Cumin ◽  
The Mean

Abstract Ethiopia is one of the east African countries which produce and exports various spices to other countries. Black cumin (Nigella sativa L.) is an important stiff annual flowering plant which mainly grows by producers for its seeds. An increasing demand of black cumin seed and oil in local, national and international market for medicinal, consumption and commercial purpose makes the best alternative crop for small holder farmers in Ethiopia. In spite of its importance, not much has been done to improve its production and productivity in Ethiopia. Therefore, this research was designed to examining efficiency variations and factors influencing technical inefficiency levels of producers on black cumin production in northwest Ethiopia. Primary data were collected using a semi-structured questionnaire administered on 188 black cumin producers selected using systematic random sampling technique. Moreover, various data analysis methods such as descriptive statistics and stochastic frontier model were used for analyzing the data. The empirical result obtained by applying maximum likelihood estimate of stochastic frontier model revealed that seed (p < 0.01) labor (p < 0.05), chemical (p < 0.01) and land (p < 0.05) were significant input variables in determining black cumin production. The mean technical efficiency level of black cumin producer was generally low, about 53.1%. The mean value of actual yield, potential yield and yield gap was 3.131, 5.832 and 2.701 quintals, respectively. Moreover, the result of stochastic frontier model together with the inefficiency parameters revealed that market price of black cumin (p < 0.01) and access of extension service (p < 0.1) were significant variables and positively influenced the efficiency levels of black cumin producers. Whereas age of producers (p < 0.05) and distance to farm plot (p < 0.01) negatively influenced the technical efficiency levels of black cumin producers. Therefore, the study recommends that adoption of latest agricultural technologies; development of institutions, agricultural extension services and infrastructure are advisable to improve the efficiency and commercial value of black cumin production.

scholarly journals Technical Efficiency of Red Pepper Production: The Case of Dalocha, Southern Ethiopia

2019 ◽  
pp. 1-8
Author(s):  
Degineh Lagiso ◽  
Endrias Geta
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Red Pepper ◽  
Southern Ethiopia ◽  
Stochastic Frontier Model ◽  
Relative Deviation ◽  
The Mean ◽  
Input Variables ◽  
Discrepancy Ratio

Increasing the productivity of red pepper is important to meet the need of ever increasing population. However, farmers faced the problem of productivity due to the lack of knowledge on how to maximize level of output at a given level of inputs. The objective of this study was to assess the technical efficiency of red pepper production in Dalocha district of southern Ethiopia. Cobb-Douglas stochastic frontier model was used to estimate the technical efficiency and its determinants in red pepper production. Maximum likelihood estimation results showed that increasing input variables (oxen power, seed, labor and fertilizer) would increase yield of red pepper. The discrepancy ratio,γ, which measures the relative deviation of output from the frontier level due to inefficiency was about 85 percent indicating that about 85% of variation in red pepper yield among the farmers was attributed to technical inefficiency effects. The mean technical efficiency of farmers was about 80%. The implication is that, there is an opportunity to improve technical efficiency among farmers on average by 20% through efficient use of inputs. Thus, it is possible to improve technical efficiency through utilizing available inputs wisely. 

scholarly journals Technical Efficiency among Pepper Farmers in Sarawak, Malaysia: A Stochastic Frontier Analysis

2020 ◽  
Vol 10 (3) ◽  
pp. 729-739
Author(s):  
Anita Rosli ◽  
Alias Radam ◽  
Khalid Abdul Rahim ◽  
Amin Mahir Abdullah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Agricultural Practices ◽  
Piper Nigrum ◽  
Maximum Output ◽  
Full Time ◽  
Frontier Analysis ◽  
One Step ◽  
The Mean

This study aimed to estimate the technical efficiency among pepper (Piper nigrum. L) farmers in Sarawak, Malaysia, using Stochastic Frontier Analysis (SFA). SFA involves a one-step process that can estimate technical inefficacy factors simultaneously with the production frontier. 678 pepper farmers were involved in this study, and the data were collected from 2012 to 2013. The mean score for technical efficiency was 0.518, indicating that pepper farmers were not efficient. However, the inefficiency model showed that education level, membership in farmers’ association, full-time as a pepper farmer, attending courses and visiting sample farms were factors that significantly improved inefficiency. The major problem of pepper farming in Sarawak is poor agricultural practices where farmers do not fully utilize the available agricultural inputs to produce maximum output. Based on the findings, farmers must improve their knowledge and skills in pepper farming through agronomic education.

Stochastic Frontier Model Approach of Technical Efficiency for Paddy Farming in Odisha

2020 ◽  
pp. 1135-1140
Author(s):  
Priyabrata Bhoi ◽  
Deepak Kumar Swain ◽  
Subhadra Mishra ◽  
Debahuti Mishra ◽  
Gour Hari Santra ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Stochastic Frontier Model ◽  
Model Approach

scholarly journals Measuring Technical Efficiency of Wheat Farms in Punjab, Pakistan: A Stochastic Frontier Analysis Approach

2019 ◽  
Vol 7 (1) ◽  
pp. 115
Author(s):  
Muhammad Aamir Shahzad ◽  
Amar Razzaq ◽  
Muhammad Aslam ◽  
Muhammad Faisal Gulzar ◽  
Muhammad Asad ur Rehman Naseer ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Improvement ◽  
Panel Survey ◽  
Frontier Analysis ◽  
Input Use ◽  
The Mean ◽  
Potential Maximum ◽  
Management Issues

The wheat productivity in Punjab is less than the potential maximum due to imbalanced input use and farm management issues. Many studies have attemped to estimate technical efficiency of wheat crops using different techniques. However, most of them used limited datasets that focus on only a few districts. This study study uses a comprehensive dataset which is representive of Punjab province. We used farm-level panel survey data collected from 1581 farms in 17 districts of Punjab from 2005-06 to 2007-08. The technical efficiency of the wheat farms was analyzed using Stochastic Frontier Analysis (SFA) approach. Further, we identified the determinants of (in)efficiency using the same method. The results show that the mean technical efficiency of wheat farmers in Punjab is 84 percent indicating a considerable room for efficiency improvement. Further, the results indicate that technical efficiency could be improved by educating the younger farmers, building road infrastructure, and improving farmers’ access to essential inputs. The study supports the argument that wheat farmers are less technically efficient in Punjab, Pakistan.

scholarly journals Is tilapia farming financially profitable and efficient? Policy options for sustainable farming

2019 ◽  
Vol 17 (1) ◽  
pp. 92-98
Author(s):  
Mezamun -Ara Mukta ◽  
Md. Akhtaruzzaman Khan ◽  
Md Rais Uddin Mian ◽  
Rahat Ahmed Juice
Keyword(s):  
Technical Efficiency ◽  
Production Cost ◽  
Stochastic Frontier ◽  
Market Price ◽  
Total Production ◽  
Policy Options ◽  
Financial Benefit ◽  
Stochastic Frontier Production Function ◽  
High Production Cost ◽  
Frontier Production Function

Tilapia (Oreochromis niloticus) is known as ‘fish for the poor’ due to its low market price. However, the question remains about the sustainability of this species because of high production cost and lower market price.  Therefore, this study examined the financial profitability, technical efficiency and tried to find out the policy options for increasing the financial benefit of fish farmers. A total of 250 tilapia fish farmers were selected from seven tilapia producing areas of Bangladesh. To fulfill the objectives of this study, profitability, stochastic frontier production function, and sensitivity analysis were employed.  Considering all selected farmers, tilapia farming found a profitable business where undiscounted BCR was only1.11. Among all cost items, only feed consists of 70 percent of the total production cost.  The mean technical efficiency level of tilapia fish farmers was 85 percent, implies that by operating at full technical efficiency levels, tilapia yield could be increased from the current level of 20.98 to 24.13 tons per hectare and efficient farmers found more productive than inefficient farmers. Farmer’s financial benefit can be increased by reducing the feed price, decreasing FCR or increasing the output price. Feed price reduction or enhance the quality of feed could be effective policy options for sustaining the tilapia farming. J. Bangladesh Agril. Univ. 17(1): 92–98, March 2019

scholarly journals Factors Affecting Technical Efficiency of Rubber Smallholders in Negeri Sembilan, Malaysia

2017 ◽  
Vol 9 (5) ◽  
pp. 226
Author(s):  
A. Aliyu ◽  
Ismail Abd Latif ◽  
Mad Nasir Shamsudin ◽  
Nolila Mohd Nawi
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Likelihood Function ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Farm Size ◽  
Cross Sectional ◽  
Frontier Analysis ◽  
The Mean ◽  
Size Task

The main objective of the study was to figure out, identify and analyse the technical efficiency of rubber smallholders’ production in Negeri Sembilan, Malaysia. Multi-stage data collection procedures, comprising both purposive and random sampling techniques, were used. Using structured questionnaires, farm-level information with cross sectional data from five districts of Negeri Sembilan, were employed in the study. A parametric Stochastic Frontier Analysis (SFA), with a transcendental logarithmic (Translog) functional form, was used in the study. The descriptive statistics results revealed that, the mean rubber yield was 5465 kg while that of the seven inputs used include 1.2 ha, 602.7, 2.33, 363.6 kg, 13.0 lit, 13.2 man days and 2.47 respectively for farm size, task, farm tools, fertilizer, herbicides, labour and rubber clones.The inferential statistics showed that, the mean technical efficiency was found to be 0.73 with a standard deviation of 0.089. Thus, this translates that 27% accounted for technical inefficiency. Both the sigma square and gamma coefficients were found to be statistically significant at 1% level. The Log Likelihood Function (LLF) and the Log Rati (LR) test were found to be respectively 167.7 and 34.07. The results further revealed that, although none of the farms were found to be on the frontier, however, 9 farms were very near the frontier with efficiency score range between 0.90-0.99. And twenty (20) firms have range 0.80-0.90. Race, Tapping experience, household number and extension agent’s visits were found to be technically significant and are thus critical in determining technical efficiency of rubber smallholders in Negeri Sembilan, Malaysia.

scholarly journals Economics and Technical Efficiency of Maize Production Among Small Scale Farmers in Abuja, Nigeria: Stochastic Frontier Model Approach

2020 ◽  
Vol 2 (6) ◽  
Author(s):  
E. S. Ebukiba ◽  
L. Anthony ◽  
S. M. Adamu
Keyword(s):  
Stochastic Frontier ◽  
Farm Size ◽  
Small Scale ◽  
Stochastic Frontier Model ◽  
Gross Margin ◽  
Maize Production ◽  
Factors Influencing ◽  
The Mean ◽  
Small Scale Farmers ◽  
Model Approach

This study evaluated Economics and Technical Efficiency of Maize Production Among Small Scale Farmers in Abuja, Nigeria; Stochastic Frontier Model Approach; Multi-stage sampling technique was adopted and used. Primary data were collected through the use of well-structured questionnaire from one hundred and fifty (150) sampled respondents in the study area. Data were analyzed to achieve the specified objectives using the following tools of analysis, Descriptive Statistics, Stochastic Frontier, Gross Margin Analysis, Financial Analysis, Five Point Likert Scale, and Principal Components Analysis. The results show that majority 40.47% of the sampled respondents were among the age range of 41-50 years of age and 25.33% were within the age bracket of 31-40 years of age. The mean age of the sampled farmers is 44 years. Which indicated that Young and energetic farmers are able to withstand stress and adopt new innovations. Most 88.67% of the farmers were male. Majority 72.67% were married. The mean household size of the sampled respondents is 6 members per family. Majority (67%) of the small-scale maize farmers had 1-2 ha of land and the average farm size cultivated by the farmers was 2.576 ha. The factors influencing total output of maize were seed input (P<0.01), Farm Size (P<0.05), quantity of fertilizer (P<0.05), and labour input (P<0.01) were statistically significant variables. The results of the inefficiency components show that the factors influencing technical inefficiency includes: age (P<0.01), education (P<0.01), access to credit (P<0.05), farming experience, and household size (P<0.05) and were statistically significant. The total revenue realized by the sampled small-scale maize farmers was N238,317 on average. While the total variable costs on average basis was N109,702.93. The gross margin realized was N128667.07. The gross margin ratio was 0.54 while operating ratio calculated was 0.857 and the rate of return on investment (RORI) was 1.17. The retained component from the constraint’s analysis include Lack of Improve Seed, Lack of Transportation, Poor Storage Facilities, Inadequate Capital, and Cattle Herdsmen. The retained components explained 60% of the variation of the component included in the model. The study therefore, recommends that affordable loans and adequate capital should be made available to the small-scale maize farmers, farmers should be properly trained and educated by the non-governmental organizations and extension agents on chemical application, fertilizer use and pests and diseases control measures especially on integrated pest management (IPM). Inputs like improve seeds, fertilizer, and chemicals should be made available to farmers at subsidized rates and at appropriate time coinciding with production periods for proper usage. Provisions should be made for transportation and storage facilities for farmers, the issue of conflict between farmers and herdsmen should be brought to book and resolved amicably for peaceful coexistence.

scholarly journals Profiling Smallholder Farmers Goals and Aspirations for Enhanced Agricultural Development: a Case of Smallholder Maize Farmers

2017 ◽  
Vol 9 (4) ◽  
pp. 98
Author(s):  
Fakunle Olufemi Oyedokun ◽  
Zhou Leocadia
Keyword(s):  
Technical Efficiency ◽  
Agricultural Development ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Principal Component ◽  
Descriptive Statistics ◽  
Policy Makers ◽  
Frontier Analysis ◽  
The Mean

The intervention of government in the development of smallholder agriculture is still grappling and has not yielded the desired results, despite the huge investment from government. This has been a source of concern to government and policy makers. This paper sought to analyze the socio-demographic features of the smallholder maize farmers; profile the goals and aspirations of these farmers; and lastly, to analyze the technical efficiency of maize farmers. Qamata and Tyefu in the Transkei and Ciskei homelands, respectively were purposively chosen for the study. Descriptive statistics; Principal component analysis (PCA) and stochastic frontier analysis (SFA) were used in the analysis. The result shows, that majority (66%) of the farmers were males with an average range of 61 years old. On the other hand, the PCA indicated that there is a variation between predicted goals and aspiration among maize farmers. The SFA result showed that farmers were efficient. The mean technical efficiency estimates up to 100%, an indication that farmers are more efficient in the usage of factors of production at their disposal in the study area. This implies that smallholder maize farming is lucrative due to its profit-making potentials. Moreover, this is a clear indication that more income and wealth is generated thereby implying that it is strategic and pivotal in improving farmers’ livelihoods

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