scholarly journals FINANCIAL FACTORS AFFECTING PRODUCTION EFFICIENCY OF SMALL SCALE COFFEE FARMS IN BURUNDI

2021 ◽  
Vol 6 (2) ◽  
pp. 57-70
Author(s):  
Epiphany Bukuru ◽  
Nasieku Tabitha

Purpose: The study sought to evaluate financial factors affecting the production efficiency of small-scale coffee farms in Burundi. Methodology: The research design used during the study was descriptive. The research targeted a population of 300 small-scale coffee farmers. The study had a sample population of 121 smallholder coffee farmers. The study conducted the research for a 6-year period between 2015-2020. The data was collected using a secondary data collection sheet. Secondary data was obtained from Coffee federations' annual reports, cooperatives reports, and coffee farmers’ records. Analysis of the data was done using the Eviews student 11 version. The analyzed data was presented in form of tabulations, mean and standard deviation. Findings: The study findings showed that the correlation analysis showed that the selling prices per kilogram of coffee beans had a negative and significant correlation to the production efficiency by R = 0.98. Production efficiency had a negative and significant correlation to capital availability by R = 0.260. Lastly, production efficiency had a positive and significant correlation to production costs at R = 0.500. The findings of the research obtained that selling prices per kilogram of coffee beans had a not significant negative effect on production efficiency, while capital availability and production costs had a positive effect on the production efficiency. A unique contribution to theory, practice, and policy: The study recommended that government should review the policies relating to the selling prices per kilogram of coffee beans to improve small-scale coffee farmers’ incomes. Government should also facilitate access to credit to small-scale coffee farmers. The study incorporated the Cobweb theory of price fluctuation, the theory of credit rationing also called adverse selection theory, and the high payoff inputs model.

2021 ◽  
Vol 6 (2) ◽  
pp. 43-61
Author(s):  
Natalia Popa Antalovschi ◽  
Raymond A. K. Cox

Purpose: The purpose of this study is to ascertain which financial factors affect the price-to-earnings ratios of Canadian firms. Methodology: A sample of 578 Canadian firms, across 11 industries, listed on the Toronto Stock Exchange during 2011 to 2018 is examined. Stock prices and financial statements accounts data is collected from S & P Capital IQ. We compute 27 financial factors to use as independent variables to regress on the price-to-earnings ratio dependent variables employing the Statistical Package for Social Sciences (SPSS) utilizing the software program’s forced, forward, and backward selection methods. Robustness tests are conducted using alternative dates (after the fiscal year end) to discover which model of financial factors best explains the forward price-to-earnings ratio as well as other statistical methods such as analysis of variance. Results: We find a unique model for each of the 3 models based on the forward price-to-earnings ratio date. The financial factors that explain each of the dates after the end of the fiscal year (1 month, 2 months, and 3 months) are the 4 variables: net profit margin, return on investment, total asset turnover, and the natural logarithm of the total assets. For model 3 (1 month after fiscal year end), in addition to the previous 4 factors, the dividends per share is part of the regression equation. All 3 models have strong statistically significant results at an alpha level of one percent. Further, industry effects are deduced and presented. Unique contribution to theory, policy, and practice: The results are unique to a Canadian sample of firms post- International Financial Reporting Standards (IFRS) adoption. Companies can utilize the empirical findings to manage their financial performance to maximize their price-to-earnings ratio. A product of a firm’s higher price-to-earnings ratio is a lower cost of capital which expands the corporation’s investment opportunities. Investors can apply this research to develop investment strategies hinged on price-to-earnings ratios to augment investment returns.


2021 ◽  
Vol 15 (1) ◽  
pp. 179-192
Author(s):  
Irmeilyana Irmeilyana ◽  
Ngudiantoro Ngudiantoro ◽  
Desty Rodiah

Pagaralam is one of the coffee-producing districts in South Sumatra (Sum-Sel). Pagaralam coffee farming is a hereditary business, where the majority of land processing is still traditional. This is related to working capital and farmers' income. This study aims to analyze the factors that affect the income of Pagaralam coffee farmers by using correspondence analysis. There are 30 variables or factors studied. Each variable is divided into several categories. The categories of each variable are described graphically with the categories of income variable. Primary data were obtained from 196 respondents who were selected based on purposive sampling technique. There are 13 factors that affect the income of respondents, namely: number of dependents, number of trees, age of the trees, number of female workers from outside the family, frequency of fertilization, frequency of herbicide application, production of harvest, production outside of harvest, gross income, minimum price of coffee beans, the maximum price of coffee beans, economic status and land productivity. There are 8 of the 13 factors that predominantly characterize the profile of net income level of Pagaralam coffee farmers.  In general, the factor that must be considered in coffee farming is land productivity which is also related to production costs in land processing and crop production, as well as external factors regarding the market price of coffee.


Energies ◽  
2021 ◽  
Vol 14 (4) ◽  
pp. 826
Author(s):  
Geoffrey Gasore ◽  
Helene Ahlborg ◽  
Etienne Ntagwirumugara ◽  
Daniel Zimmerle

In Rwanda, most small-scale hydropower systems are connected to the national grid to supply additional generation capacity. The Rwandan rivers are characterized by low flow-rates and a majority of plants are below 5 MW generation capacity. The purpose of this study is to provide a scientific overview of positive and negative factors affecting the sustainability of small-scale hydropower plants in Rwanda. Based on interviews, field observation, and secondary data for 17 plants, we found that the factors contributing to small-scale hydropower plant sustainability are; favorable regulations and policies supporting sale of electricity to the national grid, sufficient annual rainfall, and suitable topography for run-of-river hydropower plants construction. However, a decrease in river discharge during the dry season affects electricity production while the rainy season is characterized by high levels of sediment and soil erosion. This shortens turbine lifetime, causes unplanned outages, and increases maintenance costs. Further, there is a need to increase local expertise to reduce maintenance cost. Our analysis identifies environmental factors related to the amount and quality of water as the main current problem and potential future threat to the sustainability of small-scale hydropower. The findings are relevant for energy developers, scholars, and policy-makers in Rwanda and East Africa.


2018 ◽  
Vol 3 (1) ◽  
pp. 39
Author(s):  
. Mardianto

Agricultural land conversion occurs mostly in big cities in Indonesia and also occurs in small villages and towns on a small scale but not much has been done by the study. This study was linked to detect factors affecting land conversion in Kota Solok. This research was conducted by survey method. Sampling is done by simple random sampling with balanced amount. The data collected in this study includes primary data and secondary data. The analysis is done by description using percentage of respondent's level of achievement (tcr). The result of the analysis shows that the conversion of paddy fields in Solok City is mostly done by individual buyers, the internal factor which has the greatest effect on the conversion of paddy fields in Solok City is the economic condition, while the external factor is caused by the population growth and the policy caused by the weakness of policy control which government apparatus.


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.


2015 ◽  
Vol 48 (3-4) ◽  
pp. 59-66
Author(s):  
Ehiabhi Cyril Odion ◽  
Idris Salihu Ahmadu ◽  
Ahmed Rufai Aminu ◽  
Grace Lamba Luka ◽  
Shero Abdulazeaz Isah ◽  
...  

Abstract The paper looks at estimation of the agronomic efficiency (AE) for various crop mixtures at varying levels of fertility management. To evaluate the concept, three trials using different cropping patterns and fertility rates were reviewed by calculating and comparing the relative yield and agronomic efficiency of the main crop. AE was higher in the mixtures compared to the sole crop in all the trials, and in the mixtures while efficiency between the control and the fertility levels employed were high, those between the fertility levels were not as high and increased at a reducing rate, sometimes tending to be constant. These responses gave rise to situations similar to a quadratic response and could therefore permit for optimum fertility levels for crop mixtures to be predicted. This therefore means that sustainable intensification is possible under small scale production systems as increase in efficiency was higher at lower fertilizer rates compared to the higher rates. Assessment of AE for crop mixture could also result in staggered recommended production practices, thus discouraging the excessive use of fertilizers – chemical or organic – and cut cost of production, reduce the pollution of the environment with its attendant consequences while production costs could be within reach of the small scale farmers. Small scale family farmers seeking alternative methods of soil fertility management could be encouraged to undertake the clipping/thinning management of companion leguminous crops as such measures could enhance their productivity as the estimation of AE has shown in these investigations. The practice of either clipping or thinning of the leguminous companion crop is similar or close to current production practices employed by these farmers and therefore should not be difficult to adapt and adopt.


Economies ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 66 ◽  
Author(s):  
Nguyen Hung Anh ◽  
Wolfgang Bokelmann ◽  
Do Thi Nga ◽  
Nguyen Van Minh

This study attempts to uncover the truth behind an increasing number of smallholder farmers participating in sustainable coffee farming in Vietnam. Using stochastic frontier and cost-benefit analysis, a sample of 316 smallholder farmers in Dak Lak was chosen to analyze the economic impacts of sustainable and conventional coffee farming on farmers’ welfare. In addition, we conducted field observation and key informant interviews to describe several farming practices. The results highlight the fact that farmers’ decisions to participate in sustainable coffee farming are mainly driven by economic benefits. Sustainable farming is more cost-effective and profitable than conventional farming, despite the insignificant difference in production efficiency. Improvement of education, farming knowledge, and collective actions could mitigate negative effects of small-scale production for sustainable coffee farmers. Pesticide management, shade coffee encouragement, and reduction of excessive fertilization, over-irrigation, and unproductive coffee varieties are recommended for sustainable development of the sector.


2020 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Joseph Nthuli Ngunguni ◽  
Dr Sedina Misango ◽  
Dr. Martin Onsiro

Purpose: The objective of this study was to examine the financial factors which affect the profitability of general insurance companies in Kenya. The profitability in this study is represented by ROA, as dependent variable for the period 2013 to 2017. Independent variables in this study were liquidity, leverage, loss ratio and expenses ratio. Methodology: The type of research design used in this study was both descriptive as well as referential analysis. The study applied a census procedure to study all the 28 general insurance companies and targeted the entire population of 28 companies. Secondary data was collected from individual annual published financial statements of 28 general insurance companies for 5 years; 2013 to 2017, AKI reports and IRA published annual reports. A collection data sheet was used to collect the relevant data from all the 28 general insurance companies. After the data was collected and sorted, it was analyzed using referential analysis (multiple regression analysis). This was assisted by SPSS (Version 20) software. Findings: The study revealed that the regression coefficient of loss ratio was -0.068, t-statistics -0.415 and p-value of 0.682 while that of leverage ratio was -0.048, t-statistics -0.546 and p-value of 0.590. Liquidity ratio had a regression coefficient of 4.238, t-statistics 3.257 and p-value of 0.003 while expenses ratio had a regression coefficient of -0.281, t-statistics -3.840 and p-value of 0.001. Unique contribution to theory, practice and policy: The study recommends that the management of general insurance companies in Kenya need to address liquidity and expenses by minimizing expenses and maximizing liquidity in order to be on the safe side as far as profitability is concerned. The study also recommends that regulators and other stakeholders, within the industry, should at regular interval intensify efforts to ascertain the claims handling procedures currently in use by insurance companies in Kenya.


Author(s):  
Lya Aklimawati ◽  
Djoko Sumarno ◽  
Surip Mawardi

Economic cluster approach can be used to enhance economic growth of region by optimizing local resources. Coffee is one of plantation commodity which developed in Bondowoso district through economic cluster model. Low quality coffee beans and inefficiency marketing system were the basic problems at farmer level that pushed for developing economic coffee cluster. The aim of this research was to analyze the effect of service quality on economic coffee cluster development toward farmers and stakeholders satisfaction. This research was carried out at Bondowoso District, East Java. Direct observation and interviews coffee farmers and stakeholders using close questions was conducted in this study. Data collected consisted of primary and  secondary data. The number of respondents were 47 stakeholders consisted of 5 officers from BI Jember, 5 officers from Dishutbun Bondowoso, 2 officers from Perum Perhutani and 35 farmers. Respondents selection was based on convenience sampling method. Primary data was analyzed by using correlation and multiple linier regression analysis. The result showed that the relationship between dimensions of service quality with each other varies from weak to strong. Stakeholders satisfaction (included farmers) on economic coffee cluster implementation was influenced significantly by tangible at significance level 5%. While reliability, responsiveness, assurance and empathy has no effect to stakeholders satisfaction at significance level 5%.   Keyword : satisfaction, farmer, stakeholder, service quality, economic cluster, coffee


Author(s):  
Elsiddig Yousif Mohammed, Omran Abbas Yousef, Alzain Abdulla

Wheat is one of the most important strategic food security crops grown during the winter season in Gezira scheme. This study aimed to identify and to estimate wheat production in Gezira scheme in Sudan during the period (1991- 2015). This study used secondary data information that consists of time series of wheat production, real costs, temperature, economic liberalization (dummy variable) obtained from Wad Madani Meteorological Station, Ministry of Agriculture and Forestry, and Central Bureau of Statistics. This study used analytical descriptive method. Using the Ordinary Least Squares (OLS) technique to estimate climate and same economic factors that influence wheat production in Gezira Scheme though (E- views software). The findings showed that, rising costs have negative effect on production. This explained the fact that production inputs such as agricultural machines, pesticides were imported from other countries, so it affected directly by exchange rate. Results showed that, there were an inverse and significant relationship between average temperature and wheat production during the period of study. On the other hand, economic liberalization (dummy variable) has positive effect on wheat production, considering increase of agricultural finance from 2% to 50% during nineteenth`s from total finance. The study recommended with efficient production technologies to decrease. the real production costs. To cope with climate change conditions, growing early mature and drought tolerant varieties, are crucially needed. More revision and studies concern with economic liberalization policies to alleviate economic distortions that are associated with these policies would be applied.


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