scholarly journals Productivity and Efficiency of Precision Farming: The Case of Czech Cereal Production

2021 ◽  
Vol 13 (3) ◽  
pp. 15-24
Author(s):  
Lukáš Čechura ◽  
◽  
Zdenka Žáková Kroupová ◽  
Vladimír Kostlivý ◽  
Michaela Lekešová ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Cost Savings ◽  
Estimation Procedure ◽  
Precision Farming ◽  
Theil Index ◽  
Productivity Change ◽  
Four Component Model ◽  
Cereal Production ◽  
Productivity Dynamics

The paper deals with the sources of competitiveness of Czech cereal production by considering precision farming technology and employing micro-level data collected in the FADN database for the period 2005–2018. The analysis is based on the stochastic frontier modelling of an input distance function in the specification of the four-component model, which currently represents the most advanced approach to technical efficiency analysis. To provide a robust estimate of the model, the paper employs methods which control for the potential endogeneity of netputs in the four-step estimation procedure. Furthermore, the total factor productivity change is calculated using the Törnqvist-Theil index. The results reveal that Czech cereal producers took great advantage of their production possibilities and experienced technological progress, which contributed considerably to productivity dynamics and consequently to an increase in their competitiveness. Precision farming, which is associated with a large number of innovations reflected in technological change and optimal resource use, contributed to higher technical efficiency connected with cost savings in Czech cereal production.

scholarly journals Drivers of Productivity Change in the Italian Tomato Food Value Chain

Agriculture ◽  
2021 ◽  
Vol 11 (10) ◽  
pp. 996
Author(s):  
Lukáš Čechura ◽  
Zdeňka Žáková Žáková Kroupová ◽  
Antonella Samoggia
Keyword(s):  
Productivity Growth ◽  
Value Chain ◽  
Economies Of Scale ◽  
Generalized Method Of Moments ◽  
Stochastic Frontier ◽  
Estimation Procedure ◽  
Scale Efficiency ◽  
Productivity Change ◽  
Tomato Production ◽  
Productivity Dynamics

This study evaluated productivity dynamics and identified sources of productivity growth in Italian tomato production and processing. We used a stochastic frontier input distance function with four error components—heterogeneity, statistical noise, persistent and transient inefficiency—and a four-step estimation procedure with a system generalized method of moments (GMM) estimator in the first step to address the endogeneity problem. The results reveal significant differences in the productivity and efficiency of tomato production and processing. Moreover, there are considerable differences among the different sizes of tomato producers, with the main variations observed for scale efficiency. While tomato processors operate at an optimal production size, tomato producers are characterized by considerable economies of scale, especially small producers. These results thus suggest that there is significant opportunity for technical efficiency improvements at both stages of the value chain. Finally, due to improvements made to scale efficiency, extensive productivity growth was observed for the group of small tomato producers.

scholarly journals Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Mukole Kongolo
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Farm Size ◽  
Small Scale ◽  
Maize Production ◽  
Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers  operate  at 91% technical efficiency  level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

scholarly journals TECHNICAL EFFICIENCY OF CEREAL PRODUCTION IN NORTH CENTRAL NIGERIA: A CASE FOR MAIZE, RICE AND SORGHUM FARMERS

2016 ◽  
Vol 15 (1) ◽  
pp. 25-34
Author(s):  
M. A. BWALA ◽  
H. S. E. KOKOYE ◽  
R. N. YEGBEMEY
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Rice Production ◽  
Cereal Crops ◽  
Stochastic Frontier Model ◽  
Survey Area ◽  
North Central ◽  
Rice Farmers ◽  
Input Combination ◽  
Cereal Production

This study estimated technical efficiency levels of cereal crops producers. The study employed the translog stochastic frontier model to estimate efficiency levels of maize, rice and sorghum producers in the survey area. Findings revealed that maize and sorghum farmers were operating in the efficiency range of 0.50 to 0.98, while for rice farmers efficiency estimates ranged between 0.71 and 0.98. Fur- thermore, it was also observed that a majority of the rice farmers operate in the range 0.91 and 0.98 efficiency levels. Also, about 18% of the farmers operate in the efficiency range of 0.81 and 0.90, while just about 14% operate in the range of 0.96 and 0.98 efficiency levels for rice production. Findings suggest that, all things been equal, most of the cereal crops producers could improve their current levels of production by adjusting their input combination.

Agricultural credit and technical efficiency in Ghana: is there a nexus?

2016 ◽  
Vol 76 (2) ◽  
pp. 309-324 ◽  
Author(s):  
Abdul-Hanan Abdallah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Probit Model ◽  
Estimation Procedure ◽  
Farm Size ◽  
Agricultural Credit ◽  
Content Type ◽  
The Impact ◽  
Unique Dataset

Purpose – The purpose of this paper is to examine the impact of agricultural credit on technical efficiency of Ghanaian maize farmers using a unique dataset drawn from the database of Sub-Saharan Africa’s intensification of food crops agriculture (Afrint II) in 2008 period. Design/methodology/approach – In this study, a two-stage estimation procedure is employed to determine impact of agricultural credit on technical efficiency of Ghanaian maize farmers. The first stage utilized probit model while the second stage utilized stochastic frontier approach to estimate impact of credit on technical efficiency of Ghanaian maize farmers. Findings – The study found that farmers are producing below the frontier with average technical efficiency of 47 percent. Policy variables such as credit access; education, extension access and farm size played a stronger role in technical efficiency. Agricultural credit in particular increased technical efficiency by 3.8 percent. Research limitations/implications – The results should not be extended to the impact of agricultural credit on economic efficiency since the allocative efficiency component is not considered in this study. Also, caution should be taken in the interpretation of these results because the data could not permit the incorporation of all variables that might affect technical efficiency. Originality/value – The originality of the paper and its contribution to existing literature largely lies from the use of a unique dataset to find evidence of the impact of credit on efficiency in Ghana.

scholarly journals The Productivity Dynamics of China’s Environmentally Friendly Production Technologies in terms of Wastewater Treatment Techniques

2018 ◽  
Vol 2018 ◽  
pp. 1-10
Author(s):  
Fuxia Yang ◽  
Mian Yang ◽  
Jiangchuan Xu
Keyword(s):  
Wastewater Treatment ◽  
Technical Efficiency ◽  
Environmentally Friendly ◽  
Productivity Index ◽  
Productivity Change ◽  
Treatment Techniques ◽  
Treatment Technologies ◽  
Production Technologies ◽  
Productivity Dynamics ◽  
Environmentally Friendly Production

Low economic profit usually reduces the incentive of producers to operate their wastewater treatment technologies effectively. It is necessary to investigate the performance of environmentally friendly production technologies that reduce wastewater discharges and generate economic outputs simultaneously (EPTWs) in China over the past decade. In this paper, we apply the Malmquist-Luenberger productivity index widely used in the field of economics to evaluate the productivity change of EPTWs for 30 administrative provinces in China during 2003–2015. The pathways of the productivity change are further identified by decomposing the productivity index into two components: technological change and technical efficiency change. The results show that China’s environmental productivity index associated with wastewater reduction had undergone a downward trend, and evident spatial disparities are observed among the 30 provincial regions. Moreover, the changes of China’s environmental productivity over the whole studied period can mainly be attributed to technological progress, while the technical efficiency component has contributed little, although its annual contributing rate is in an increasing trend.

A Stochastic Frontier Approach to Assessing Total Factor Productivity Change in China’s Star-Rated Hotel Industry

2020 ◽  
Vol 45 (1) ◽  
pp. 109-132
Author(s):  
Hongwei Liu ◽  
Henry Tsai
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Stochastic Frontier ◽  
Hotel Industry ◽  
Productivity Change ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Frontier Analysis ◽  
Scale Change ◽  
Economic Regions

Using a stochastic frontier analysis approach and a flexible translog production function considering neutral technological progress, this study assesses technical efficiency change, technological change, and scale change, and further measures the total factor productivity (TFP) change and its convergence of China’s star-rated hotel industry in 31 provinces, municipalities, and regions from 2001 to 2015. The results show that the TFP change of China’s star-rated hotel industry was generally favorable and boosted by both the technical efficiency change and technical change; nevertheless, the scale change hindered and largely caused fluctuations in the TFP change. From a regional economic perspective, the TFP change of the star-rated hotel industry in most of the eight comprehensive economic regions examined was rather stable. While few comprehensive economic regions existed absolute convergence, all of the regions showed significant conditional convergence except for the Eastern Coastal region.

scholarly journals Technical Efficiency of Wheat Producers in North Shewa Zone of Amhara Region, Central Ethiopia

2020 ◽  
Vol 9 (3) ◽  
pp. 77
Author(s):  
Tadesse Getachew ◽  
Mengistu Ketema ◽  
Degye Goshu ◽  
Degnet Abebaw
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Sampling Technique ◽  
Estimation Procedure ◽  
Simple Random Sampling ◽  
Farm Income ◽  
Technical Inefficiency ◽  
Central Ethiopia ◽  
Multi Stage

The aim of this study is to analyze technical efficiency of wheat producers and identifying the sources of inefficiency in North Shewa Zone of Amhara National Region State, Central Ethiopia. A multi-stage sampling technique was used to select sample respondent households. In the first phase, three potential wheat grower districts namely, Bassona Worrana, Siyadebrna Wayu, and Moretna Jiru were selected purposively. In the second stage, six potential kebeles (lowest administrative level), two from each of the three districts were selected. In the third phase, proportionally with population size, 374 sample households were selected using simple random sampling techniques from each of the selected kebeles. Cobb-Douglas Stochastic Frontier Production (SFP) function and inefficiency function were used to estimate the technical inefficiency level of wheat producers using a one-step maximum likelihood estimation procedure. The average productivity of wheat was found to be 32.60 quintals per hectare. Land size, fertilizer, seed, labor, and oxen power were important factors of production positively and significantly affecting wheat output. Age and education level of a farmer, off-farm income, extension contact, and credit services were found negatively and significantly affecting the technical inefficiency of wheat producing farmers. The inefficiency components contributed about 70.62% of the total deviation from the best possible production output. The average technical efficiency (TE) level of wheat producers was 72%. Overall, the provision of fertilizers, credit, and extension services would make wheat producers more productive and technically efficient in the study area.

scholarly journals Total Factor Productivity Growth, Technological Progress and Technical Efficiency Changes: Productivity Change Dimensions in Tunisia

2020 ◽  
Vol 4 (2) ◽  
pp. 1-1
Author(s):  
Maha Kalai ◽  
Kamel Helali
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Technological Progress ◽  
Stochastic Frontier ◽  
Total Factor Productivity Growth ◽  
Productivity Change ◽  
Factor Productivity ◽  
Economic Sectors ◽  
Total Productivity

In this study, we use the stochastic frontier production approach to split the total productivity growth sources into technical progress and technical efficiency changes of the economic sectors in Tunisia between 1961 and 2014. Based on the sectors’ evolution, the analysis is centred on the technological progress trend, the technical efficiency change, and the role of productivity change in the economic growth. The empirical results show that the production factors have a significant effect on productivity. The review of the total factor productivity growth sources reveals that the contribution of technological progress is the main source of this growth.

scholarly journals Determinants of Persistent and Transient Technical Efficiency of Milk Production in EU

2020 ◽  
Vol 23 (4) ◽  
pp. 39-54
Author(s):  
Gabriela Trnková ◽  
Zdeňka Žáková Kroupová
Keyword(s):  
Technical Efficiency ◽  
Milk Production ◽  
Negative Impact ◽  
Estimation Procedure ◽  
Mean Value ◽  
Four Component Model ◽  
Labour Share ◽  
Economies Of Size ◽  
The Mean ◽  
The Eu

This paper deals with the estimation of technical efficiency of milk production in the EU, its decomposition and the analysis of determinants of transient and persistent efficiency. Attention was focused on specialized milk production using FADN data in the period from 2004 to 2017. The analysis is based on the four-component model that represents the most advanced approach to technical efficiency analysis at present and the multi-step estimation procedure extended by technical efficiency determinants. To the best of our knowledge, this is the first application of this model based on the multi-step estimation with the inclusion of technical efficiency determinants on this type of specialization in the EU. The results show that the overall technical efficiency achieves the mean value of 68% and is relatively dense around the mean. The persistent inefficiency poses a greater problem for dairy production and varies considerably across European regions compared to the transient part. Based on the assessment of the development of transient efficiency, it is evident that it is influenced by the situation on the dairy market, in particular by the milk crises. The most effective conversion of inputs to outputs is achieved in the Netherlands, the United Kingdom, and Belgium and is least burdened with institutional and structural rigidities. The results show that transient efficiency is positively influenced by paid labour share, rented land share, level of modernization and level of off-farm activities and negatively by the level of subsidies on livestock. The positive effect of the economies of size on persistent efficiency is not proved. However, specialization, despite the higher vulnerability of specialized farms to price shocks, affects persistent efficiency positively. Localization of farms in LFAs, as expected, has a negative impact on persistent technical efficiency.

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