Economic Analysis of Groundnut Production in Kasungu District, Malawi: A production Economics Approach

Kapopo, Vincent and Assa, Maganga (2012): Economic Analysis of Groundnut Production in Kasungu District, Malawi: A production Economics Approach.

Abstract

This study was rolled out to assess resource use efficiency in small scale groundnut production in Kasungu district. A household survey was administered to 42 groundnut farmers in Northern part of Kasungu district. The study has established that a farmers return MK2 for every Kwacha invested. The farmer incurs MK95 for every Kg of groundnut produced. The foregoing analysis of production function indicated that farm size, seed and labour are the important factors of production that affect groundnut output in the study area. The regression coefficients of these inputs were positive and statistically significant. Farm size had the highest MVPs as compared to other inputs. Seed was the second production factor with higher MVP indicating that farmers can increase their groundnut output by using optimal seedrate. The main constraints to marketing included low output prices and poor (unstandardized) measurement scales.

• Item Type: MPRA Paper
• Language: English
• Keywords: Groundnut; MVP; Smallholder farmer; Kasungu
• Subjects: D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity

References

Chirwa,E.W., and Zakeyo, C. (2003). Impact of Economic and Trade Policy Reforms on Food Security in Malawi. Report submitted to the food and Agriculture Organisation(FAO) and the African Economic Research Consortium (AERC).

Getnet Geremew, 1994. Efficiency of Resource Use in Coffee Growing Area: The case of Smallholder Farmers in Ghibi Woreda Unpublished M.sc. Thesis Presented to the School of Graduate Studies of Alemaya University.

Gujarati, N.D., 1999. Essential of Econometrics. 2nd edition, U.S Military Academy, West point, New York, NY, U.S.A. pp 256-270.

Edriss, A.K. and F. Simtowe. (2002). Technical Efficiency in Groundnut Production in Malawi: An Application of a Frontier Production Function. UNISWA Journal, 45-60.

Heady, E.O., and J. L. Dillon, 1961. Agricultural Production Functions, USA, Iowa State University press, Ames, pp.73, 75-76, 97-98, 197.

Kankwamba, H., Mangisoni, J.H., Simtowe, F., Mausch, K. and Siambi, M. (2012). Improved Legume Seed Demand Systems in Central Malawi: What Do Farmers’ Seed Expenditures Say About Their Preferences? 2012 Conference, August 18-24, 2012, Foz do Iguaçu, Brazil.

Kherallah, M., Minot N., Kachule, R., Soule B.G. and Berry, P. (2001). Impact of agricultural market reforms on small holder farmers in Benin and Malawi. IFRI collaborative Research Project.

Guide to Agricultural Production in Malawi(2004/5). Government publications.

Makato, C.J.A.(1997). A Description of Crop Varieties Grown in Malawi.

Nyirenda, N.E., Cusack, T.J. and Saka, V.W. (1992). Groundnut Agronomy research in Malawi: Past achievements and future Priorities.Proceedings of the fifth regional groundnut workshop for southern Africa.

Chiyembekeza, A.J., Subrahmanyam, P. Kisyombe,C.T. and

Nyirenda, N.E. (2003). Groundnut : a package of recommendations for production in Malawi.

Chamango, A.(2010). Groundnut Varieties of Malawi: Botanical types, characteristics, uses and production areas.

Heady, E.O., 1952. Economics of Agriculture Production and Resource Use, U.S.A. Prentice-Hall, Inc. Englewood Cliffs, pp. 21-22, 29-30.