Msuya, Elibariki Emmanuel and Hisano, Shuji and Nariu, Tatsuhiko (2008): Explaining Productivity Variation among Smallholder Maize Farmers in Tanzania.
Download (121kB) | Preview
Using a stochastic frontier production model proposed by Battese and Coelli (1995), the paper estimates the levels of technical efficiency of 233 smallholder maize farmers in Tanzania and provides an empirical analysis of the determinants of inefficiency with the aim of finding way to increase smallholders’ maize production and productivity. Results shows that smallholder productivity is very low and highly variable, ranging form 0.01t/ha to 6.77t/ha, averaging 1.19t/ha. Technical efficiencies of smallholder maize farmers range from 0.011 to 0.910 with a mean of 0.606. Low levels of education, lack of extension services, limited capital, land fragmentation, and unavailability and high input prices are found to have a negative effect on technical efficiency. Smallholder farmers using hand-hoe and farmers with cash incomes outside their farm holdings (petty business) are found to more efficient. However, farmers who use agrochemicals are found to be less efficient. Policy implications drawn from the results include a review of agricultural policy with regard to renewed public support to revamp the agricultural extension system, and interventions towards improving market infrastructure in order to reduce the transaction element in the input and output marketing.
|Item Type:||MPRA Paper|
|Original Title:||Explaining Productivity Variation among Smallholder Maize Farmers in Tanzania|
|Keywords:||Productivity variation; smallholder farmers; technical efficiency; maize; tanzania|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
|Depositing User:||Elibariki Msuya|
|Date Deposited:||13. Apr 2009 08:51|
|Last Modified:||12. Feb 2013 13:04|
Aigner, D. J., Lovell, C. A. K. and Schmidt, P. 1977. ' Formulation and estimation of stochastic frontier production function models', Journal of Econometrics 6: 21-37.
Ahmad, Munir, Chaudhry, Ghulam Mustafa and Iqbal, Muhammad. 2002., Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis. The Pakistan Development Review 41:4 Part II (Winter 2002) pp. 643–663
Amani, H. K. R. 2004. “Agricultural Development and Food Security in Sub-Saharan Africa Tanzania Country Report” http://www.fao.org/tc/Tca/work05/Tanzania.pdf
Amani, H. K. R. 2005. “Making Agriculture Impact on Poverty in Tanzania: The Case on Non-Traditional Export Crops”. Presented at a Policy Dialogue for Accelerating Growth and Poverty Reduction in Tanzania, ESRF, Dar es Salaam http://www.tzonline.org/
Ammon Mbelle and Thomas Sterner. 1991. Foreign Exchange and Industrial Development: A Frontier Production Function Analysis of Two Tanzanian Industries World Development, Vol. 19, No. 4, pp. 341-347
Amos T. T. 2007. ‘An Analysis of Productivity and Technical Efficiency of Smallholder Cocoa Farmers in Nigeria’, Journal of Social Science, 15(2): 127 - 133
Baffes, J. 2002. “Tanzania’s Cotton Sector: Constraints and Challenges in a Global Environment”, Africa Region Working Paper Series No. 42
Barnes Andrew. 2008. ‘Technical Efficiency Estimates of Scottish Agriculture: A Note’, Journal of Agricultural Economics, Vol. 59, No. 2, 370–376
Basnayake, B. M. J. K., and Gunaratne, L. H. P. 2002. ‘Estimation of Technical Efficiency and It’s Determinants in the Tea Small Holding Sector in the Mid Country Wet Zone of Sri Lanka’, Sri Lanka Journal of Agricultural Economics 4: 137-150.
Battese, G. E. 1992. ‘Frontier Production Functions and Technical Efficiency: A Survey of Empirical Applications in Agricultural Economics’, Agricultural Economics, 7: 185–208.
Battese, G. E. and Coelli, T. J. 1995. ‘A model for technical inefficiency effects in a stochastic frontier production function for panel data’, Empirical Economics 20: 325-332.
Coelli, T. J. 1996. A Guide To Frontier Version 4.1 A Computer Program For Stochastic Frontier Production And Cost Function Estimation. CEPA Working Papers, 96/07, University of New England, Australia. 135pp.
Debreu G. 1951. ‘The coefficient of resource utilization, Econometrica, 19(3), pp. 273-292.
Debreu G. 1959. ‘Theory of Value, New York, Wiley.
Duvel G. H., Chiche Y., and Steyn G. J. 2003. ‘Maize production efficiency in the Arsi Negele farming zone of Ethiopia: a gender perspective’, South African Journal of Agricultural Extension Vol.32: 60-72
Isinika A., Ashimogo G., and Mlangwa J. 2003. AFRINT Country Report – “Africa in Transition: Macro Study Tanzania”, Dept of Agricultural Economics and Agribusiness, Sokoine University of Agriculture, Morogoro
Kalaitzadonakes N.G.,Wu S. and Ma J.C. 1992. ‘The relationship between technical efficiency and firm size revisited, Canadian Journal of Agricultural Economics, 40, pp. 427-442.
Kibaara B. W. 2005. ‘Technical Efficiency in Kenyan’s Maize Production: An Application of the Stochastic Frontier Approach’, Colorado State University, USA
Meeusen, W. and Van den Broeck, J. 1977. ‘Efficiency Estimation from Cobb-Douglas Production Function with Composed Error’, International Economic Review 18: 435-444.
Msuya, E. E. and Ashimogo, G. C. 2006. “An estimation of technical efficiency in Tanzanian sugarcane production: A case study of Mtibwa sugar company outgrower’s scheme”. Journal of economic development Vol. (1) Mzumbe University, Tanzania
Msuya, E. E. 2007. ‘Analysis of Factors Contributing to Low FDI in the Agriculture Sector in Tanzania’, Proceedings of the 10th International Conference of the Society for Global Business and Economic Development (SGBED), Vol. IV, pp 2846-2865
Msuya, E. E. 2008. Reconstructing agro-biotechnologies in Tanzania: smallholder farmers perspective. In: Reconstructing biotechnologies (Ed. G. Ruivenkamp, S. Hisano, and J. Jongerden), Wageningen Academic Publishers, 2008.
Munroe Darla. 2001. 'Economic Efficiency in Polish Peasant Farming: An International Perspective', Regional Studies, 35:5, 461 — 471
Nyange, D., and Wobst, P. 2005. “Effects of Strategic Grain Reserve, Trade and Regional Production on Maize Price Volatility in Tanzania: An ARCH Model Analysis”. Policy Analysis for Sustainable Agriculture Development (PASAD), http://www.pasad.uni-bonn.de
Peterson Willis L. 1997. "Are Large Farms More Efficient?" University of Minnesota, http://ideas.repec.org/p/wop/minnas/9702.html
Raghbendra Jha, Hari K. Nagarajan, and Subbarayan Prasanna. 2005. ‘Land Fragmentation and its Implications for Productivity: Evidence from Southern India’, Australia South Asia Research Centre (ASARC) Working Paper 2005/01
R&AWG. 2005. “Poverty and Human Development Report 2005”, Mkuki and Nyota Publishers, Dar es Salaam
R&AWG. 2007. “Poverty and Human Development Report 2007”, Mkuki and Nyota Publishers, Dar es Salaam
Sassi, M. 2004. “Improving efficiency in the agriculture sector as an answer to globalization, growth and equity: the case of Tanzania”, Quaderno di ricerca n.4. Pavia, Italy
Seyoum, E. T., Battese G. E. and Fleming E. M. 1998. ‘Technical Efficiency and Productivity of Maize Producers in Eastern Ethiopia: A Case Study of Farmers within and Outside the Sasakawa-Global 2000 Project. Agricultural Economics 19: 341-348.
Shapiro K. H. and Muller J. 1977. Sources of technical efficiency: the role of modernization and information, Econ. Develop. & Cultural Change 25(2)
Skarstein, R. 2005. “Economic Liberalization and Smallholder Productivity in Tanzania; From Promised Success to Real Failure, 1985–1998, Journal of Agrarian Change, Vol. 5 (3), 334–362
Taylor G. Timothy and Shonkwller J. Scott. 1986. ‘Alternative Stochastic Specifications of the Frontier Production Function In the Analysis of Agricultural Credit Programs and Technical Efficiency’, Journal of Development Economics 21: 149-160, North-Holland
Tchale Hardwick and Sauer Johannes. 2007. 'The efficiency of maize farming in Malawi: A bootstrapped translog frontier’, Cahiers d’économie et sociologie rurales, n° 82-83,
Tyler William G. and Lee Lung-Fei. 1979. ‘On Estimating Stochastic Frontier Production Functions and Average Efficiency: An Empirical Analysis with Columbian Micro Data’, The Review of Economics and Statistics, Vol. 61, No. 3, pp. 436-438
URT. 2006. Economic Survey 2005, http://economia.unipv.it/ric-az/Quaderno%204.pdf