scholarly journals Technical efficiency of smallholder honey farmers in Jimma zone, Ethiopia

2020 ◽  
Vol 28 (1) ◽  
pp. 7-22
Author(s):  
Hailemariam Legesse ◽  
Yadeta Bekele ◽  
Mulubrihan Bayissa ◽  
Tsega Lemma
Keyword(s):  
Technical Efficiency ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Honey Production ◽  
Local Practices ◽  
Effect Model ◽  
Jimma Zone ◽  
Input Variables ◽  
Discrepancy Ratio ◽  
And Training

This study analyzes technical efficiency and determinants of the efficiency of honey production in the Gomma and Gera districts of the Jimma zone. The data were obtained from 194 randomly selected honey-producing smallholder farmers. A Cobb - Douglas stochastic frontier production analysis with the inefficiency effect model was used to estimate technical efficiency and identify the determinants of efficiency variations among honey farmers. The study showed that several hives and supplementary feeds positively and significantly influenced honey yield. This shows that there is room to increase honey productivity from the current level if farmers can efficiently use these input variables. The result further showed that there were differences in technical efficiency among honey producers in the study area. The discrepancy ratio, γ, which measures the relative deviation of output from the frontier level due to inefficiency, was about 84%. This implies that about 84% of the variation in honey output among the farmers was attributed to technical inefficiency effects. The estimated mean level of technical efficiency of honey producers was about 74%. This reveals that there is a possibility to increase the level of honey output by about 26% through exploiting the existing local practices and technical knowledge of the relatively efficient farmers. The education level of the farmer, landholding, income, extension contact, and training were found to determine technical efficiency significantly. Therefore, the concerned sector should focus on the above variables to enhance the technical efficiency of honey producers in the study area.

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 Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach

Land ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 246
Author(s):  
Markose Chekol Zewdie ◽  
Michele Moretti ◽  
Daregot Berihun Tenessa ◽  
Zemen Ayalew Ayele ◽  
Jan Nyssen ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Crop Production ◽  
Large Scale ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Crop Productivity ◽  
Small Scale ◽  
Stochastic Frontier Approach ◽  
Small Scale Irrigation

In the past decade, to improve crop production and productivity, Ethiopia has embarked on an ambitious irrigation farming expansion program and has introduced new large- and small-scale irrigation initiatives. However, in Ethiopia, poverty remains a challenge, and crop productivity per unit area of land is very low. Literature on the technical efficiency (TE) of large-scale and small-scale irrigation user farmers as compared to the non-user farmers in Ethiopia is also limited. Investigating smallholder farmers’ TE level and its principal determinants is very important to increase crop production and productivity and to improve smallholder farmers’ livelihood and food security. Using 1026 household-level cross-section data, this study adopts a technology flexible stochastic frontier approach to examine agricultural TE of large-scale irrigation users, small-scale irrigation users and non-user farmers in Ethiopia. The results indicate that, due to poor extension services and old-style agronomic practices, the mean TE of farmers is very low (44.33%), implying that there is a wider room for increasing crop production in the study areas through increasing the TE of smallholder farmers without additional investment in novel agricultural technologies. Results also show that large-scale irrigation user farmers (21.05%) are less technically efficient than small-scale irrigation user farmers (60.29%). However, improving irrigation infrastructure shifts the frontier up and has a positive impact on smallholder farmers’ output.

scholarly journals Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach

2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Research Question ◽  
Stochastic Frontier ◽  
Negative Influence ◽  
Farm Size ◽  
Primary Data ◽  
Tomato Production ◽  
Frontier Analysis

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.

scholarly journals Technical Efficiency Of Smallholders Of Oil Palm Cultivation In Ogan Komering Ilir

Agro Ekonomi ◽  
2019 ◽  
Vol 29 (2) ◽  
pp. 196
Author(s):  
Armina Fariani ◽  
Jamhari Jamhari ◽  
Any Suryantini
Keyword(s):  
Technical Efficiency ◽  
Oil Palm ◽  
Smallholder Farmers ◽  
Organic Fertilizer ◽  
Technical Level ◽  
Factors Affecting ◽  
Probabilistic Sampling ◽  
Npk Fertilizer ◽  
And Training ◽  
Descriptive Method

This study aims to (1) identify the factors affecting the production of oil palm cultivation business by the smallholders and (2) identify the technical level as well as factors influencing business inefficiency of oil palm cultivation by the smallholders  in Air Sugihan Sub District of Ogan Komering Ilir Regency, South Sumatera Province.  This research uses the  basic method of analytical descriptive method.  The data were collected by way of observation and direct interviews in the field guided by a questionnaire.  The research location was determined purposively, that is in Pangkalan Damai Village, Air Sugihan Sub-district, Ogan Komering Ilir Municipality, South Sumatera Province. Sampling was conducted using non probabilistic sampling method (purposive sampling).  The research investigated 79 smallholder farmers of oil palm cultivation in Pangkalan Damai village of Air Sugihan Sub-district, Ogan Komering Ilir Municipality, South Sumatera Province.  On the basis of the analysis, it is revealed  that (1) the factors affecting the increase of palm production were labor, land area, TSP fertilizer, NPK fertilizer, organic fertilizer, herbicides and insecticides which also have an effect on decreasing  palm production. (2) Palm plantation business was technically efficient with the average technical level of smallholder palm farmers in Air Sugihan Sub-district of Ogan Komering Ilir Municipality of 0.86090.  Factors that decrease the technical inefficiency in smallholder palm cultivation in Air Sugihan Sub-district of Ogan Komering Ilir Regency were farmers’ education level.  This information can be used by the goverment to improve technical efficiency through education in the form of counseling and training to increase production.

scholarly journals Technical Efficiency of Independent Oil Palm Smallholder In Indonesia

2021 ◽  
pp. 59
Author(s):  
Firna Varina ◽  
Sri Hartoyo ◽  
Nunung Kusnadi ◽  
Amzul Rifin
Keyword(s):  
Technical Efficiency ◽  
Oil Palm ◽  
Technical Assistance ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Stochastic Frontier Approach ◽  
Funding Sources ◽  
Result Show ◽  
Input Variables ◽  
Farmer Education

This study assesses technical efficiency and possible sources of inefficiency of independent smallholder oil palm production in Indonesia with stochastic frontier approach.  The result show all the input variables is  positively affect the oil palm production and exhibit decreasing returns to scale .  The farmers have mean technical efficiency (TE) values 0.6541, however about 53 % farmers have TE above 0.70. Factors such as age of farmer, education, extension services, member of farmer group,  land ownership and funding sources have a positive and significant effect on technical efficiency. It is suggested that by improving factors such as input used, education level, technical assistance on farming practice and accessibility to credit facilities should be increase the productivity and technical efficiency of oil palm production.  The farmers who have plant over 30 years old, which the TE and productivity are the lowest values,  should be thinking about replanting

scholarly journals DETERMINATS OF TECHNICAL EFFICIENCY OF MANGO PRODUCTION IN MEKONG DELTA, VIETNAM: A COBB-DOUGLAS STOCHASTIC FRONTIER PRODUCTION APPROACH

2019 ◽  
pp. 85-91
Author(s):  
T.H.V.T. Kiet ◽  
Shaufique F Sidique ◽  
Mad Nasir Shamsudin ◽  
Ahmad Hanis I A Hadi
Keyword(s):  
Technical Efficiency ◽  
Plant Density ◽  
Market Access ◽  
Stochastic Frontier ◽  
Mekong Delta ◽  
Stochastic Production Frontier ◽  
Land Area ◽  
Cropping Season ◽  
Stochastic Production ◽  
Input Variables

This study employed a Cobb-Douglas stochastic production frontier function to estimate the level of technical efficiency. The results of the analysis showed that cropping season of mango growers have been round year. Difference of the study compared to past researches related to tropical fruits analyzed efficiency of three seasons instead of only focusing on efficiecy of one seasson or total a year. The findings revealed that season 3 ranked first in terms of technical efficiency (58.2%), follwed by season 1 (53.6%) and then season 2 (49.2%). Moreover, the input variables that explained technical efficiency were were fertilizer (root), fertilizer (leaf) and labor in season 1; pesticide, fertilizer (leaf) and labor in seaon 2; and pesticide, fertilizer (root), fertilizer (leaf) and labor in in season 3. In addition, major determinants of socioeconomic characteristics influenced positively on technical efficiency were were plant density and land area in season 1 and season 3; market access, plant density and land area in season 2. Likewise, the constraints to mango production were wrapping bag and classifying sale in season 2, and age and wrapping bag in season 3. KEY WORDS: Technical efficiecny, Cobb-Douglas, mango, Mekong Delta

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

scholarly journals Market Structure Conduct Performance Hypothesis Revisited Using Stochastic Frontier Efficiency Analysis

2012 ◽  
Vol 48 (3) ◽  
Author(s):  
Saleem Shaik ◽  
Albert J. Allen ◽  
Seanicaa Edwards ◽  
James Harris
Keyword(s):  
Market Structure ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Measure ◽  
Frontier Analysis ◽  
Input Variables ◽  
And Performance ◽  
Frontier Efficiency ◽  
The Relationship

Stochastic frontier analysis, which is used to estimate technical efficiency, is extended to examine the market structure, conduct and performance hypothesis for the U.S. trucking industry. The technical efficiency measure takes into account not only the relationship between inputs used in the production of output, but it also examines the importance of market structure conduct factors to the performance of the firm. An empirical application to U.S. trucking carriers over the period 1994-2003 is examined. Results reveal that average haul, average load, debt-to-equity and market concentration significantly affected technical efficiency. Capital, fixed and variable input variables were significant in the production function equation.

scholarly journals Technical Efficiency of Irish Potato (Solanum tuberosum L.) Production in Molo Sub County, Kenya

2020 ◽  
pp. 1-9
Author(s):  
Pauline Nyokabi Kamau ◽  
Geoffrey Kingori Gathungu ◽  
Rael Nkatha Mwirigi
Keyword(s):  
Technical Efficiency ◽  
Smallholder Farmers ◽  
Solanum Tuberosum L ◽  
Stochastic Frontier ◽  
Potato Production ◽  
Irish Potato ◽  
Likelihood Method ◽  
Negative Effects ◽  
Cross Sectional ◽  
Extension Services

This study focused on measuring farm level technical efficiency among smallholder Irish potato farmers in Molo Sub County and its determinants. Descriptive research design was applied. Cross-sectional data was collected through multistage sampling from smallholder Irish potato farmers located in Molo Sub County from April to June 2019. A Stochastic frontier approach assuming a Cobb-Douglas production function was adopted to analyze the level of technical efficiency and explain variations in this technical efficiency across farmers and estimation was done by applying the maximum likelihood method. Mean technical efficiency was 70.7%. The statistically significant variables with respect to the farm inputs were land (0.262), seed (0.629), fertilizer (-0.299) and fungicide (0.131) variables respectively. However, fertilizer variable had negative effects on Irish potato production. Education (-0.061), gender (-0.262), access to extension services (-0.078) and farmer group (-0.217) variables were significant and influenced technical inefficiency negatively.Increase in smallholder farmers’ literacy level, accessibility to extension services and farmer groups may improve Irish potato production technical efficiency. However, gender contribution towards Irish potato production technical efficiency needs a deeper understanding.

scholarly journals Contribution of Co-Skewness and Co-Kurtosis of the Higher Moment CAPM for Finding the Technical Efficiency

2014 ◽  
Vol 2014 ◽  
pp. 1-9 ◽  
Author(s):  
Md. Zobaer Hasan ◽  
Anton Abdulbasah Kamil
Keyword(s):  
Risk Factors ◽  
Stock Market ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stock Exchange ◽  
Stochastic Frontier ◽  
Frontier Analysis ◽  
Two Factors ◽  
Input Variables ◽  
The Individual

The objective of this paper is to present the technical efficiency of individual companies and their respective groups of Bangladesh stock market (i.e., Dhaka Stock Exchange, DSE) by using two risk factors (co-skewness and co-kurtosis) as the additional input variables in the Stochastic Frontier Analysis (SFA). The co-skewness and co-kurtosis are derived from the Higher Moment Capital Asset Pricing Model (H-CAPM). To investigate the contribution of these two factors, two types of technical efficiency are derived: (1) technical efficiency with considering co-skewness and co-kurtosis (WSK) and (2) technical efficiency without considering co-skewness and co-kurtosis (WOSK). By comparing these two types of technical efficiency, it is noticed that the technical efficiency of WSK is higher than the technical efficiency of WOSK for the individual companies and their respective groups. As per available literature in the context Bangladesh stock market, no study has been conducted thus far to measure technical efficiency of companies and their respective groups by using the risk factors which are derived from the H-CAPM. In this research, the link between H-CAPM and SFA is established for measuring technical efficiency and it is believed that the findings of this study may be applied to other emerging stock markets.

Sign in / Sign up

Export Citation Format

Share Document