Nyanjong', Oyugi Johana and Lagat, Job (2012): Analysis of efficiency in sugarcane production: the case of men and women headed households in SONY sugar out -grower zone, Rongo and Trans-Mara districts, Kenya.
Download (243kB) | Preview
About one quarter of cane producers in SONY Outgrower Zone are women headed households. However, a number of studies have suggested that women in rural areas are more disadvantaged in terms of accessing education, land, credit, and extension services. If this is the case, women cane farmers would be expected to be less efficient compared to men farmers. Before this can be concluded, there was need to establish whether differences in economic efficiency between men and women headed households exist in cane growing. The objectives of the research were; to characterize men and women headed cane growing households, to evaluate the relationship between institutional factors and gender, and to determine the differences in economic efficiency between men and women managed sugarcane farms. A multi stage sampling procedure was employed to select 205 active sugarcane farmers. A dual parametric stochastic decomposition technique was employed to disaggregate the components of economic efficiency. FRONTIER 4.1 program was used to derive maximum likelihood estimates and farm level technical efficiencies. A two limit Tobit model was then used to determine the influence of selected socio-economic and institutional variables on farm level technical, allocative and economic efficiency. Results showed that men headed households had a mean technical efficiency of 67.6%, a mean allocative efficiency of 82.48% and a mean economic efficiency of 58.0%. Women headed households had a mean technical efficiency of 72.0%, a mean allocative efficiency of 83.15% and a mean economic efficiency of 62.5%. Land under sugarcane cultivation was the single most important contributor to farmers’ efficiency. Women managed farms were on average more technically, allocative and economically efficient than men managed farms. Membership to outgrower associations in addition to encouraging increase in human capital will be important in enhancing farmers’ efficiency.
|Item Type:||MPRA Paper|
|Original Title:||Analysis of efficiency in sugarcane production: the case of men and women headed households in SONY sugar out -grower zone, Rongo and Trans-Mara districts, Kenya|
|Keywords:||efficiency; Kenya; sugarcane productivity; stochastic frontier functions|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development
|Depositing User:||oyugi nyanjong|
|Date Deposited:||22. Aug 2012 14:04|
|Last Modified:||13. Feb 2013 09:47|
Abdulai,A. & Huffman, W.(2000) Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana, Journal of Economic Development and Cultural Change, Vol. 48, No. 3, pp.503-520.
Abdulai,A. & Eberlin, R.(2001) Technical Efficiency during Economics Reform in Nicaragua: Evidence from Household Survey Data, Journal of Economic Systems, Vol.25, pp.113-125.
Alvarez, A & Arias, C. (2004) Efficiency and Farm Size: A Conditional Analysis, Journal of Agricultural Economics, Vol.30, pp. 241-250.
Asfar, B. & Aduarsse, G(2004), The Role of Education in the Adoption of Fertilizer under Different Socio-economic Environments in Ethiopia, Agricultural Economics Journal, Centre of Developmental Research, University of Bonn, Bonn, pp.215-228.
Ashagidigbi, W.M., Sulaiman, S.A., & Adesiyan, A(2011) Technical and Efficiency of Poultry Producers in Nigeria, Agricultural Journal, Vol.6, No.4, pp.124-130.
Ayhan, H.O. (2001) Statistics by Gender: Measures to Reduce Gender Bias in Agricultural Surveys, International Statistical Review, Vol. 69, No.3, pp. 447-460.
Battese, G.E. & Coelli, T.J.(1995) A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data, Journal of Empirical Economics, Vol. 20, pp. 325-332.
Binam, J.N., Tonye, J., & Akoa, M.(2004) Factors Affecting the Technical Efficiency Among Smallholder Farmers in the Slash and Burn Agricultural Zone of Cameroon, Journal of Food Policy, Vol. 29, pp. 531-545.
Bravo-Ureta, B.E & Pinheiro, A.E. (1997) Technical, Economic and Efficiency in Peasant Farming: Evidence from Dominican Republic, The Developing Economies, Vol.34, pp.48-69.
Chirwa,E.(2007)) Source of Technical Efficiency among Smallholder Farmers in Southern Malawi, AERC Research Paper 172. Nairobi.
Davis, L.E. & North, D.C.(1970) Institutional Change and American Economic Growth.
Dadzie, S.K. & Dasmani, I.(2010) Gender Difference and Farm Level Efficiency, Journal of Development and Agricultural Economics, Vol.12, No.2,pp. 441-451.
Debertin, D.L(2002) Agriculture Production Economics, 2nd Ed, McMillan Publishers.
Devadoss, S & Kropf, J.(1996) Impacts of Trade Liberalizations under the Uruguay Round on the World Sugar Market, Journal of Agricultural Economics, Vol.15, pp. 83-96.
Doss,C.R(1999) Twenty Five Years of Research on Women Farmers in Africa: Lessons and Implications for Agricultural Research Institutions, CIMMYT Economics Program Paper No.99-02.
Export Processing Zones Authority (2005) Kenya’s Sugar Industry, Government Printer, Nairobi.
Food & Agricultural Statistics Online(FAOSTATS), www.faostat.org/faostats (accessed 15th April, 2010)
Fernandez, M.D. & Nuthall, P.L (2009) Technical Efficiency In The Production Of Sugar Cane In Central Negros Area, Philippines:An Application Of Data Envelopment Analysis, J. ISSAAS Vol. 15 No. 1, pp 77-90
Government of Kenya (2004) Strategy for Revitalizing Agriculture for 2004-2014. Government Printer, Nairobi, Kenya.
Gujarati, D.N.(2003). Basic Econometrics. 4th Edition. Irwin: McGraw-Hill.
Heidhues And Buchenrieder(2004), Rural and Financial Markets for Food Security, Food and Nutrition Security in the Process of Globalization, Schulz M et al(eds): Munster, Germany: Lit-Verlag.
Jondrow, J., Lovell, C.A., Materov,I., & Smith, P.(1982), On the Estimation of Technical Efficiency in the Stochastic Frontier Production Model, Journal of Econometrics, Vol.9. No.3, pp.233-238.
Kenya National Bureau of Statistics (2007) Basic Report on Well-being in Kenya, Government Printer, Nairobi.
Khai, H.,Yabe, M.,Yokogawa,H., & Sato, G.(2007), Analysis of Productive Efficiency of Soybean Production in the Mekong River Delta of Vietnamm Kyoshi University, Journal of Faculty of Agriculture,Vol. 53.No.1. pp. 271-279.
Khumbhakar, S.C. & Wang, H.J.(2006) Estimation of Technical and Efficiency: A Primal Systems Approach, Journal of Econometrics,Vol.134, pp 419-440.
Kimenyi, S.M.(2002) Agricultural, Economic Growth and Poverty Reduction, Nairobi: KIPPRA.
Kipsat, M.J.(ed) Technical Efficiency of Smallholder Maize Production in Uasin Gishu District, Kenya, Africa Crop Science Conference Proceedings, Vol.7, pp.979-981.
Kirsten, J. & Vink, N. ed (2005) The Economics of Institutions: Theory and Applications to African Agriculture. University of Pretoria Printing Press, Pretoria.
Kopp, R.J., & Diewert,E.W.(1982) The Decomposition of Frontier Cost Function Deviations into Measures of Technical and Efficiency, Journal of Econometrics, Vol.19. pp.319-331.
Logistic Regression Resources Online, www.ats.ucla.edu (accessed on 30th June, 2011)
Lubwana, F.B. (1999) Socio-economic Issues Affecting the Adoption of Conservation Tillage Practices, Uganda Research Institute, Kampala.
Marinda, P., Bangura, A., Heidhues, F.(2005) Efficiency Analysis in Men and Women Managed Farms: A Research of Maize Production in West Pokot District, Kenya, Paper presented at the International Association of Agricultural Economists Conference, Gold Coast, Australia, August 12-18, 2006.
Msuya, E & Ashimogo,G(2007) Estimation of the Technical Efficiency in Tanzanian Sugarcane Production: A Case Study of Mtibwa Sugar Estate Outgrower Scheme, MPRA Paper No. 3747
Mugenda, M.M. & Mugenda, A.G. (2003) Research Methods: Qualitative and Quantitative Approaches. African Centre for Technology Studies Press, Nairobi, Kenya.
Mutangadura(2005) Gender, HIV/AIDS and Rural Livelihoods in Southern Africa: Addressing the Challenges, JENDA: A Journal of Culture and Africa Women Studies. Issue No.7.
Nchare, A.(2007) Analysis of Factors Affecting Technical Efficiency of Arabica Coffee Producers in Cameroon. AERC Research Paper 163. Africa Economic and Research Consortium, Nairobi.
North, D.C.(1994) Economic Performance Through Time, American Economic Review, Vol.84, Issue No. 3, pp. 359-368.
Nyagaka, D.O., Obare, G.A. & Nguyo, W.N(2010) Economic Efficiency of Smallholder Irish Potato Producers in Nyandarua North District,Kenya, African Journal of Agricultural Research, Vol.5, No.11, pp.1179-1186.
Ogolla, B.D. & Mugabe, J.W.(1996) Land Tenure System and Natural Resource Management. In Land We Trust: Environment, Private Property and Constitutional Changes, Juma, C. & Ojwang, J.B.(eds): 79-120. Nairobi, Kenya, Initiative Publishers.
Ogundari,J & Ojo, S.O(2006) An Examination of Technical, and Economic Efficiency of Small Farms: The Case Study of Cassava Farmers in Osun State of Nigeria, Journal of Central European Agriculture, Vol.7, No.6, pp.423-432.
Olorunfemi, O & Okoruwa, V(2006) Technical Efficiency Differentials in Rice Production Technologies in Nigeria, AERC Research Paper 154, AERC Nairobi.
Osborne, S & Trueblood, M. (2006) An Examination of Economic Efficiency of Russian Crop Production in the Reform Period, Journal of Agricultural Economics, Vol. 34, pp. 25-34.
Ostrom, E, Sabatier, P(ed)(2007), Institutional Rational Choice: An Assessment of the Institutional Analysis and Development Framework, pp. 21-64, Boulder c.o. Westview Press.
Sserunkuma, S.R., Kimera, H.R. (2006) Impact of European Sugar Trade on Developing Countries: A Research with Focus on East Africa.
Stata website, stata frontier postestimation, www.stata.com (accessed May 10th , 2011)
Udry, C., Hoddinott, J., Alderman, H., Haddad, L. (1995) Gender Differentials in Farm Productivity: Implications for Household Efficiency and Agricultural Policy, Journal of Food Policy, Vol. 20, No.5, pp. 407-423.
University College of Los Angeles Statistics Online, www.ats.ucla.edu (accessed August 21st 2009)
Wang, J. Cramer, G.L., Wailes, E.J. (1996) Production Efficiency of Chinese Agriculture: Evidence from Rural Household Survey Data. Journal of Agricultural Economics, Vol. 15, pp.17-28.
World Bank Economic Indicators Database, www.worldbank.org. (accessed September 5th 2009)