Economic efficiency of smallholder rice producers in Maramvya Irrigated Scheme, Burundi
Loading...
Date
2017
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture
Abstract
This study assessed the extent to which rice producers from Maramvya irrigated scheme
could raise their productivity and profitability if they efficiently use inputs in producing
rice. To achieve this objective, simple random sampling was used to select 230 rice
farmers in the study area and cross-sectional data were collected for season 2016/A. The
collected data were subjected to analysis where output responsiveness with respect to each
of the inputs, technical, allocative and economic efficiencies were estimated. Stochastic
frontier analysis was used to estimate technical, allocative and economic efficiencies. The
study applied Cobb-Douglas functional form for the stochastic frontier production and cost
functions and used one-step maximum likelihood estimation to estimate parameters for
stochastic frontier models. The study further assessed factors affecting efficiency levels
among rice producers. Findings of this study reveal that output elasticities with respect to
land, labour, seed and fertilizer were 0.41, 0.45, -0.11 and 0.24 respectively, meaning that
labour variable was more responsible in rice production increase while seed variable was
in negative relationship with production levels. The mean technical, allocative and
economic efficiencies were 82%, 71% and 58% respectively, meaning that the sampled
farmers were relatively technically efficient than they were allocatively and economically,
with 42% room to expand productivity and profitability. Furthermore, the results show
that the major factor affecting efficiency levels positively in the study area was the level of
education while age of the farmer, household size, access to credit and shortage of water
significantly impact efficiency levels negatively. The study recommended introduction of
new techniques rather than relying on expansion of land and labour intensification. Focus
should be on input market and availability, but also in the long run, focus should be
oriented on education and maintenance of canal for irrigation.
Description
A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN
AGRICULTURAL AND APPLIED ECONOMICS OF SOKOINE
UNIVERSITY OF AGRICULTURE. MOROGORO, TANZANIA.
Keywords
Smallholder rice producers, Irrigated schemes, Economic efficiencies, Maramvya Irrigated Scheme, Burundi