scholarly journals Technical Efficiency and Technology Gap Ratio in Cocoa Production in Nigeria: A Stochastic Metafrontier-Tobit (Sm-Tobit) Approach

2021 ◽  
Vol 2 (3) ◽  
Author(s):  
F. O. Aminu ◽  
I. A. Ayinde
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Technology Gap ◽  
Stochastic Frontier Models ◽  
Gap Ratio ◽  
Cocoa Production ◽  
The Mean ◽  
Cocoa Farmers ◽  
Technology Gap Ratio

The study analysed the technical efficiency and technology gap ratio in cocoa production in Nigeria. A multistage sampling technique was used to select 390 cocoa farmers from three zones where cocoa is commercially grown in Nigeria. Separate stochastic frontier models were estimated for farmers in Kwara, Edo and Ondo States, along with a metafrontier model to obtain alternative estimates for the technical efficiencies of farmers in the different states. Subsequently, a Tobit model was used to access the factors influencing cocoa production in the study area. Results revealed that, the average technical efficiency level was 0.685 for the pooled sample, 0.506, 0.837 and 0.713 for Kwara, Edo and Ondo States respectively, suggesting that there is substantial scope to improve cocoa production in Nigeria. The mean MTR values of 0.506, 0.837 and 0.712 for Kwara, Edo and Ondo States respectively, implied that Edo State was more technically efficient than other states in the study area.  The mean technology gap ratio (TGR) value of 84.3% indicated that, on the average, the cocoa farmers in the study areas would have to close a gap of about 15.7% in order for them to be technically efficient. The study recommended that cocoa farmers in Edo and Ondo States could improve their technical efficiency through a better management using the available technologies and resources while intervention to raise technology that will help close the gap between the regional frontier curve and the global frontier curve through raising and distributing disease resistant and high yielding cocoa seedlings to the farmers should be adopted in Kwara State.

scholarly journals ENERGY EFFICIENCY OF INDONESIA’S SUGAR INDUSTRY BASED ON ECONOMIC FRAMEWORK: STOCHASTIC METAFRONTIER ANALYSIS

2021 ◽  
Vol 11 (1) ◽  
pp. 53-66
Author(s):  
Thinzar Win ◽  
Dyah Wulan Sari ◽  
Tri Haryanto
Keyword(s):  
Energy Efficiency ◽  
Energy Use ◽  
Sugar Industry ◽  
Stochastic Frontier ◽  
Firm Level ◽  
Technology Gap ◽  
Gap Ratio ◽  
Metafrontier Analysis ◽  
Sugar Mills ◽  
Technology Gap Ratio

This study investigates the efficiency of energy use and technology gap in the Indonesian sugar industry and the factors influencing energy efficiency. Using the firm-level data of sugar mills in 42 regencies in Indonesia from 2010 to 2014, this study applies the meta stochastic frontier based on the input distance function. The metafrontier analysis is applied in sugar mills in the East Java province and other provinces in Indonesia.  All the data used in this study are the secondary data taken from the Indonesian Central Board of Statistics. The results reveal that there is a large room to save energy consumption in this industry. The mills in East Java provinces have higher energy efficiency, technology gap ratio, and metafrontier energy efficiency compared to the mills in other provinces. According to the metafrontier energy efficiency, energy inefficiencies in both groups come from operational inefficiency and technology gap. The size of the mills and age of the mills have a positive relationship with the energy efficiency of sugar mills and the size of the mills is positively related to the technology gap ratio. Meanwhile, the productivity of labor and the types of ownership do not affect the energy efficiency and technology gap.

scholarly journals Technical Efficiency Analysis of Wheat Crop in Arid Region of Punjab, Pakistan

2021 ◽  
pp. 1-9
Author(s):  
Muhammad Fahad Irfan ◽  
Muhammad Umer Afzal ◽  
Kaif Matloob ◽  
Irfan Ahmad Baig
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Efficiency Analysis ◽  
Primary Data ◽  
Wheat Crop ◽  
Analysis Model ◽  
Frontier Analysis ◽  
The Mean

The present study aims to estimate the possible effects of credit on production of wheat crop in Chakwal. The research was based on primary data gathered from 120 farmers, selected by using random sampling technique belonging to two tehsils i.e. Talagang and Chakwal. SFA (Stochastic Frontier Analysis) model was adapted to analyze the data and the results show the mean technical efficiency of the wheat crop was 82 percent for borrowers and 76 percent for non-borrowers. The results proposed that the technical efficiency of wheat growers can be increased by increasing loan disbursement in the area.

scholarly journals Measuring the Efficiency Profile of Crop Production in Traditional Rainfed Sector of North Kordofan state, Sudan.

2017 ◽  
Vol 5 (5) ◽  
pp. 464
Author(s):  
Ibrahim Elnour Ibrahim ◽  
Ahmed Mohammed Morakah
Keyword(s):  
Technical Efficiency ◽  
Economic Efficiency ◽  
Crop Production ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Secondary Data ◽  
Sampling Technique ◽  
Primary Data ◽  
Credit Access ◽  
The Mean

The main objective of this study was to measure and analyzes economic efficiency of crop production in North Kordofan State. Secondary objectives included: estimate technical, allocative and economic efficiency and construct efficiency profile determination and the effect of socio-economic factors behind inefficiency. Primary data was collected by a structured questionnaire following stratified random sampling technique from 205 farmers, while secondary data was collected form relevant Institutional sources. The stochastic frontier production and cost function model analysis was used to estimate the technical, allocative and economic efficiency of producing crops. The predicted technical efficiency and economic efficiency are the basis for estimating allocative efficiency of farm. Results indicated that the mean technical efficiency of sorghum, millet, groundnuts and sesame were 0.57, 0.73, 0.53 and 0.74, respectively. The mean allocative efficiency of sorghum, millet, groundnuts and sesame production were 0.84, 0.83, 0.92 and 0.90, respectively. The mean economic efficiency of sorghum, millet, groundnut and sesame were 0.48, 0.62, 0.49 and 0.67, respectively. Farmers who have credit access are more technically efficient than those who have no credit access.

Profitability analysis and technical efficiency of Sasakawa global 2000 maize technology in Lere Agricultural Zone, Kaduna state, Nigeria

2020 ◽  
Vol 18 (1) ◽  
pp. 20-30
Author(s):  
A.M. Durba ◽  
A. Adewumi ◽  
U. Musa
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Efficiency Score ◽  
Farm Size ◽  
Farm Income ◽  
Gross Margin ◽  
Access To Credit ◽  
Profitability Analysis ◽  
The Mean

The study determined the profitability and technical efficiency of Sasakawa Global (SG-2000) maize technology in Lere Agricultural Zone, Kaduna State, Nigeria. A total of 146 respondents were selected through a multi-stage sampling technique. Data were collected through structured questionnaire administered to the sampled respondents and complemented with interview schedule. Analysis of the data collected was done using descriptive statistics, farm budgeting technique and stochastic frontier function. Results showed that the mean age of SG-2000 adopters was 45years old, 73% of them were males and 81% were married. The mean farming experience of the adopters was 15 years, household size of 8 persons and farm size of 2.26ha respectively. Also, majority of the farmers were members of farmers’ cooperative society and had access to extension services. The farm budgeting technique revealed maize production was profitable in the area with gross margin and net farm income of ₦99,407.76/ha and ₦96,700.80/ha respectively. The maize farmers were not technically efficient with a mean efficiency score of 0.8181. The farm size at p<0.10, seed at p<0.01, fertilizer at p<0.01, capital input at p<0.01 probability levels respectively were efficiency factors, while the sex of farmer at p<0.10, marital status at p<0.10, farming experience at p<0.05 and access to credit at p<0.01 probability levels respectively were the inefficiency factors. It is recommended that other farmers in the study area should adopt the SG-2000 maize technology to improve their level of profitability and technical efficiency. Keywords: Profitability, Technical efficiency, SG-2000 maize technology, Farmers and Kaduna State

scholarly journals ANALISIS DAMPAK PENGGUNAAN PUPUK NPK LODRIN TERHADAP PRODUKSI DAN EFISIENSI USAHATANI KAKAO

2018 ◽  
Vol 27 (2) ◽  
pp. 73
Author(s):  
Jaka Sumarno ◽  
Rahmat Hanif Anasiru
Keyword(s):  
Production Efficiency ◽  
Stochastic Frontier ◽  
Sampling Technique ◽  
Survey Method ◽  
Access To Credit ◽  
Cocoa Production ◽  
Npk Fertilizer ◽  
Farmer Education ◽  
The Right ◽  
Cocoa Farmers

Cocoa has been developed in various regions in Indonesia. In developing cocoa farming, farmers still face the problem of low productivity, efficiency and quality of seeds. This is partly due to not using the right fertilizer. This study aims to analyze the effect of NPK Lodrin fertilizer use on the efficiency and income of cocoa farming in Gorontalo. The study was conducted in several Gorontalo cocoa production centers, namely in Gorontalo District and Pohuwato District in 2016. Data collection was conducted by survey method with questionnaires or structured questionnaires for 59 cocoa farmers. Respondents were farmers who used Lodrin NPK fertilizer and farmers who did not use Lodrin NPK fertilizer. The selection of respondents was carried out by stratified random sampling technique. The farming efficiency analysis method uses the Cobb-Douglas stochastic frontier production function model. Financial farming analysis was carried out to determine the level of cocoa farming income with the use of Lodrin NPK fertilizer. The results showed that the use of Lodrin NPK fertilizer significantly affected the increase in production, efficiency and income of cocoa farming in Gorontalo. The average level of farm efficiency both technical, allocative and economic efficiency of cocoa farmers using Lodrin NPK fertilizer is higher when compared to farmers who do not use Lodrin NPK fertilizer. The factors that influence the inefficiency of cocoa farming are farmer education and institutional factors, namely the frequency of counseling, participation in farmer groups, access to credit and technology assistance. The use of Lodrin NPK fertilizer increases the income of cocoa farming, as evidenced by the value of the R / C ratio and the value of return for higher production factors of farmers who use Lodrin NPK fertilizer.

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 Measurement of technical efficiency in the case of heterogeneity of technologies used between firms – Based on evidence from Polish crop farms

2021 ◽  
Author(s):  
Jerzy Marzec ◽  
Andrzej Pisulewski
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Prior Distribution ◽  
Prior Information ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Random Coefficients ◽  
Point Of View ◽  
Model Specification ◽  
Stochastic Frontier Models

In the present study, we have investigated several competing stochastic frontier models which differ in terms of the form of the production function (Cobb-Douglas or translog), inefficiency distribution (half-normal or exponential distribution) and type of prior distribution for the parameters (hierarchical or non-hierarchical from the Bayesian point of view). This last distinction corresponds to a difference between random coefficients and fixed coefficients models. Consequently, this study aims to examine to what extent inferences about estimates of farms' efficiency depend on the above assumptions. Moreover, the study intends to investigate how far the production function's characteristics are affected by the choice of the type of prior distribution for the parameters. First of all, it was found that the form of the production function does not impact the efficiency scores. Secondly, we found that measures of technical efficiency are sensitive to distributional assumptions about the inefficiency term. Finally, we have revealed that estimates of technical efficiency are reasonably robust to the prior information about the parameters of crop farms' production technology. There is also a resemblance in the elasticity of output with respect to inputs between the models considered in this paper. Additionally, the measurement of returns to scale is not sensitive to model specification.

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.

scholarly journals Socio-economic characteristics of registered cocoa farmers in Edo State, Nigeria

2016 ◽  
Vol 20 (2) ◽  
pp. 261-266
Author(s):  
C.O. Osarenren ◽  
J.O. Ejuetueyin ◽  
K.I. Eweka
Keyword(s):  
Large Scale ◽  
Formal Education ◽  
Sampling Technique ◽  
Primary Data ◽  
Farm Income ◽  
Cost Ratio ◽  
Gross Margin ◽  
Cocoa Production ◽  
Edo State ◽  
Cocoa Farmers

This study examined the socio-economic characteristics of registered cocoa farmers in Edo State; Nigeria. Primary data was collected using a well structured questionnaire administered to 180 registered cocoa farmers selected using a multi-stage sampling technique. Data were analyzed using descriptive statistics and budgetary technique. Results showed that 88.9% of cocoa farmers were male with a mean range of 46 years with 75% being married and 88.8% having formal education. The budgetary technique was used to determine the profitability of cocoa production, which was found to be profitable in the study area at a gross margin of N66, 350, Net Farm Income of N59, 200, and net return on investment of N 1.11.The Benefit Cost Ratio and Expense Structure Ratio of 2.11 and 0.12 respectively indicated that cocoa production was economically profitable and viable since the BCR is greater than 1 and the Gross Ratio (GR) of cocoa production is 0.47. From these profitability ratios, it shows that cocoa production is a profitable business in the study area. Inadequate finance to operate on large scale was found to be the major constraint to the cocoa farmers in the study area. The study concludes that cocoa production is profitable and was recommended that production could be improved and sustained through provision of soft loans to the farmers.Keywords: socio-economics, characteristics, registered cocoa farmers

Sign in / Sign up

Export Citation Format

Share Document