scholarly journals Assessment of Technical Efficiency and Its Potential Determinants among Small-Scale Coffee Farmers in Rwanda

Agriculture ◽  
2019 ◽  
Vol 9 (7) ◽  
pp. 161 ◽  
Author(s):  
Jules Ngango ◽  
Seung Gyu Kim

Coffee production is the main economic activity for smallholder farmers in Rwanda; it is also a major export crop. However, Rwandan coffee production has been facing structural changes with a significant decline in production. Considering the importance of the coffee sector to rural livelihoods and its potential role in export earnings, there is a need to ensure that small-scale coffee farmers efficiently use scarce resources in their production activities. Thus, this study estimates the technical efficiency and possible sources of inefficiency in small-scale coffee farming in the Northern Province of Rwanda. Three hundred and twenty coffee farmers are sampled to carry out a simultaneous estimation of the stochastic production frontier and technical inefficiency model. The results indicate that the mean technical efficiency among small-scale coffee farmers is 82 percent, implying a potential to increase coffee production by 18 percent with the current level of resources and technology. Coffee production displays increasing returns to scale and factors such as education, access to credit, extension services, improved variety of coffee trees, cropping system, and land consolidation have a positive and significant effect on technical efficiency. Thus, development policies in the coffee sector might focus more on enhancing the accessibility of farmers to extension services and credit facilities. In addition, adoption of high-yielding and disease-resistant coffee varieties, better cropping systems, and management of coffee plantations in land consolidation might reduce technical inefficiency among coffee farmers in the Northern Province of Rwanda.

Author(s):  
David M. Kihoro ◽  
Geofrey K. Gathungu

The importance of coffee production in the world economy cannot be ruled out due to its contribution in the developing countries in areas such as creation of employment and rise in foreign exchange. Most of the coffee producing countries in the world have come up with strategies to increase their quantity and improve the quality of their produce. In Kenya, the government have also come with numerous policies to support coffee production at the farm level but production of coffee in Kenya has since 1989 crop year been declining. There has been emergence of other enterprises that are profitable than coffee production such as real estate and dairy sector in most of the coffee-growing zones, but there are many farmers who have been determined to maintain coffee production. Despite the efforts made by the government to maximise coffee production in terms of quality and quantity, production has shown a downward trend, with some farmers completely doing away with production This study was aimed at assessing the factors that affect optimization of coffee production in Chuka sub-County, Tharaka-Nithi County. Proportional stratified random sampling was used to select a sample of 153 respondents from a population of 7,428 small-scale coffee farmers from ten cooperatives in the sub-County. The findings of the study indicated that access to extension, access to research and management of coffee cooperative were essential in coffee production with a mean agreement of 58.33%. The research established that access to extension (5%) and management of cooperatives (5%) were statistically significant while access to research at (5%) was statistically insignificant. Similarly, access to extension services increased optimization by 91%, poor management of coffee cooperatives reduced production by 45.1%, while access to research increased coffee production by 51%. Therefore, it is important to ensure farmers access extension services, research and there is improved management of coffee cooperatives.


2019 ◽  
Vol 10 (4) ◽  
pp. 1137-1152 ◽  
Author(s):  
Samira Garcia-Freites ◽  
Andrew Welfle ◽  
Amanda Lea-Langton ◽  
Paul Gilbert ◽  
Patricia Thornley

AbstractThe coffee industry constitutes an important part of the global economy. Developing countries produce over 90% of world coffee production, generating incomes for around 25 million smallholder farmers. The scale of this industry poses a challenge with the generation of residues along with the coffee cultivation and processing chain. Coffee stems, obtained after pruning of coffee trees, are one of those abundant and untapped resources in the coffee supply chain. Their high lignocellulosic content, the low calorific value ranging between 17.5 and 18 MJ kg−1 and the low ash content make them a suitable solid fuel for thermochemical conversion, such as gasification. This research evaluates the feasibility of using these residues in small-scale downdraft gasifiers coupled to internal combustion engines for power and low-grade heat generation, using process modelling and the Colombian coffee sector as a case study. The producer gas properties (5.6 MJ Nm−3) and the gasifier’s performance characteristics suggest that this gas could be utilized for power generation. A cogeneration system efficiency of 45.6% could be attainable when the system’s low-grade heat is recovered for external applications, like in the coffee drying stage. An analysis of the energy demand and coffee stems availability within the Colombian coffee sector shows that the biomass production level in medium- to large-scale coffee farms is well matched to their energy demands, offering particularly attractive opportunities to deploy this bioenergy system. This work assesses the feasibility of providing coffee stem–sourced low-carbon energy for global coffee production at relevant operating scales in rural areas.


2022 ◽  
Vol 5 ◽  
Author(s):  
Ingrid Fromm

Coffee is an important agricultural sector in Central American, directly employing over 1.2 million people in Guatemala, Honduras, El Salvador, Nicaragua, and Costa Rica. Although export revenues from coffee trade have an overall positive effect on the gross domestic product (GDP) of these countries, poverty still prevails. The COVID-19 pandemic has placed additional pressure on the sector which is vulnerable to fluctuations in the international coffee prices, low productivity levels, and climate change effects and damages caused by pest and diseases. This paper examines the effects of the COVID-19 pandemic and analyzes if the sector is resilient to withstand unexpected external shocks such as the pandemic and the hurricanes which impacted the region in the last months of 2020. The capacity to absorb, adapt, and/or transform to these shocks was assessed from the perspective of small-scale coffee farmers, traders, exporters and the entire sector in two time periods—immediately after the start of the pandemic and after the coffee harvest. Although the actors in the coffee value chain absorbed these shocks and could withstand them, adaptation to the disruptions has been challenging for small-scale farmers. Despite the vulnerability to unexpected external shocks, results indicate that a long-term transformation of the sector to build resilience is likely to be slow.


2011 ◽  
Vol 6 (2) ◽  
pp. 111-125
Author(s):  
Satinder Kumar ◽  
Parminder Singh

Technical Efficiency in the Small Scale Industrial Sectors of Punjab and Haryana - A Comparative AnalysisThe present study deals with the inter-temporal variations of technical efficiency in the small scale industrial sector of Punjab and Haryana and compares the performance of both states with the small scale industrial sector of India. Data spanning over the period 1972-73 to 2006-07 has been utilized to estimate technical efficiency with the help of data envelopment analysis (DEA) based upon efficiency scores. The empirical analysis confirms that there exists 0.176 percent and 0.470 percent technical inefficiency in the small scale industrial sectors of Punjab and Haryana, respectively. However, at the aggregated All-India level, the technical inefficiency score is 0.449. Thus, the small scale industrial sector of Punjab is comparatively more efficient than that of Haryana and All-India. Moreover, the reform process has adversely affected both the managerial and scale efficiencies of Haryana, whereas an improvement in managerial efficiency has been observed in the small scale industrial sectors of Punjab and All-India. The empirical analysis showed that in the post-reform period both at the All-India level and in Haryana technical inefficiency scores are increasing, whereas in Punjab it is decreasing. Thus, it can be inferred that scale efficiency is an important determinant of technical efficiency in explaining the performance of the small scale industrial sectors of Punjab and Haryana.


Author(s):  
Berliana Anggun Septiani ◽  
Istiarsi Saptuti Sri Kawuryan

Indonesia has a potency in the coffee sector. Many robusta coffee farmers really depending on the coffee sector. For the example, 75% of coffee farmers in Temanggung Regency work in the robusta coffee sector. Fluctuations and declining coffee production can be a burden for coffee potency optimization and decreasing the income of the coffee farmers. This study aims to determine the factors that can affect the declining of Robusta coffee production in Temanggung Regency. The analytical methods used in this study are Value Chain Analysis, Forward Linkage and Backward Linkage, and Fishbone Analysis. The author is using secondary and primary data. Secondary data was obtained from Statistics Indonesia and Directorate General of Plantations at the Ministry of Agriculture.Primary data was obtained from interviews with 3 key informans Robusta coffee farmers in Gesing Village who eligible. The result showed that age of plants and distance of each plants, lack of coffee picking services, weather and lack of cooperation and other sectors, such as the trade sector and the industrial sector can lead into a decreasing of coffee production.


Author(s):  
Fidele Hakorimana ◽  
Handan Akçaöz

This paper provides a detailed overview of the current situation of the coffee sector in the Rwandan economy and identifies the possible challenges that the sector is currently facing. The study has identified the economic and the livelihood indicators for farmers who are engaged in coffee production and also gives the Rwandan coffee sector’ situation and its position in the global coffee market. Also, the research has found out that in Rwanda, nearly 500,000 farmers produce coffee along with other crops, notably beans, savory banana and corn and found out that in 2012, coffee accounted for almost 30 percent of Rwanda’s total export revenue. On the other hand, the study revealed that the sector throughout all the coffee production process, has undergone different challenges especially climate change as it is reported by the Ministry of Agriculture and Animal resources. A low yield was reported in 2007 and climate variability was quoted among the causes. Insufficient rainfall in the last three months of 2006 (the period of coffee flowering) proceeding the short dry season in the first two months of 2007 was recorded. The reduced rainfall was also poorly distributed across coffee growing regions in Rwanda. In addition, the research revealed that even though the area under coffee production is increasing, the coffee production is decreasing due to unexpected climate change and variability in current years and also the improper use of chemical fertilizers by coffee farmers is very critical. The study concluded that adding value to the coffee supply chain of Rwanda is adding direct economic benefits and important indirect social benefits to the lives of individuals and to the health of communities in Rwanda. Moreover, more effort should continue to raise the profile of the Rwandan coffee sector suggesting that proper use of chemical fertilizers, solid marketing channels and climate change adaptations measures would be the fair ways of making the sector more profitable and considering national targets to increase coffee export revenues, a few simple measures to improve the performance of the sector could have substantial effects on the country’s economic growth.


2017 ◽  
Author(s):  
◽  
Krishna Lal Poudel

First essay consists of two steps. First, Technical Efficiency (TE) index is estimated for upriver and downriver ecoregions employing DEA technique. In the second stage, we censored the TE index and run the Tobit regression model to assess the socio-economic factors responsible for explaining technical efficiency of smallholder farming practices. The median technical efficiency values were 0.606 and 0.756 in upriver and downriver respectively. Tobit model indicates lower productivity of small scale farming units are due to inadequate water availability, lack of reliable inputs and poor market services. Access to farm credit and electricity are significant and positive factors explaining technical efficiency in both regions. The second essay examines the on-going consequences of climate change on water resources availability and how adaptation practices and strategies have developed in agricultural practices. Results indicate increasing temperatures, prolonged drought followed by intense precipitation, and greater frequency of flooding than in the past. About two-thirds of small creeks and springs have disappeared and others will soon disappear if current trends continue. Respondents prefer collective water management. Logistic regression analysis shows that farm income, market access, access to extension services, and market distance are significant predictors of adaptive behavior. Essay-3 deals the conveyance, economic and agronomic efficiency of water used, and factors affecting aggregate water use efficiency in the study regions. Farmers in the Mountain region were found relatively more effective at reducing water loss than farmers in the Hill and Terai regions. Water use efficiency scores regressed on farm related socio-economic variables shows that farm size, distance to water source, government agricultural extension services and access to credit positively affect water use efficiency in all regions.


2019 ◽  
Vol 11 (4(J)) ◽  
pp. 88-101
Author(s):  
Haile Girma ◽  
Gadisa Abera Dinka ◽  
Mohammedsani Ali Gelan

This study was conducted to estimate the technical efficiency of micro and small-scale manufacturing enterprises in Selected Towns of Jimma Zone, Oromia National Regional State by using the Stochastic Frontier Approach. The analysis used Cross-sectional data which was collected from 343 Micro and small-scale manufacturing enterprises in 2018. The finding shows the mean technical efficiency of sampled Micro and Small-Scale Manufacturing Enterprises is about 54.8% and output value-added is positively affected by capital input and raw material, but negatively affected by labor input. The finding from the inefficiency model indicates that technical inefficiency of sampled Micro and Small-Scale Manufacturing Enterprises is negatively affected by the amount of finance used for initial investment expenses; lower for enterprises which received land from the government, participate only in “Ekub”, participate in both “Ekub” and “Edir”. However, seasonal change in demand for a product is found to make technical inefficiency of enterprises higher. Thus, by improving Micro and Small-Scale Manufacturing Enterprises access to land, market, sufficient


2015 ◽  
Vol 1 (1) ◽  
pp. 57 ◽  
Author(s):  
Stanislas Bigirimana ◽  
Reason Masengu

<p>The International Coffee Agreement (ICA) aimed at strengthening the global coffee sector through the promotion of its sustainable expansion in a market-based environment for the betterment of all participants in the sector. This goal was meant to be achieved through five strategies, namely, (1) promoting international cooperation on coffee matters, (2) encouraging consumption that balances demand and supply, (3) providing market development, (4) facilitating fair-trade and (5) enhancing coffee financing for small scale farmers in developing countries. An exploratory study aiming at assessing to what extent the ICA has contributed to the development of export markets for small scale coffee growers in Manicaland, Zimbabwe showed that the ICA is failing to promote international market development. 99% of the respondents agree that it is doing it to a lower extent. This study recommends that the ICA should put in place a platform to incorporate the small scale farmers so that they increase their market spectrum in order to increase its export volumes and sustain the sector.</p>


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