Determinants of economic efficiency among smallholder Common beans farmers in Igamba and Itaka divisions in Mbozi district, Songwe region
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Date
2020
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Sokoine University of Agriculture
Abstract
Common beans are the most exported pulses in Tanzania and contributes about 62% of all
Tanzanian pulse exports. This crop has significant importance in the growth of the national
economy. The average common bean yield in the country which has been recorded at
991 kgha-1 is lower than the potential yield of 1500-3000 Kgha-1. Using data from 131
randomly selected smallholder common beans farmers from six villages in three wards of
Magamba, Bara and Halungu, this study analyzes the determinants of the economic
efficiency of smallholder common beans farmers in the study area. Specifically, the study
attempts to estimate the levels of technical, allocative, and economic efficiencies among
the sampled smallholder common beans farmers in the study area. The stochastic frontier
approach was used to estimate the production function, and from a Cobb-Douglas
stochastic frontier function and its dual, enables the estimation of the technical, allocative
and economic efficiencies. The efficiency determinants were simultaneously assessed
along with the frontier functions through the FRONTIER 4.1 software. The results show
that common bean production was positively influenced (P<0.1) by plot size, quantity of
seeds and planting fertilizers. Furthermore, the results show that, farmers’ membership to
farmer group, education level, experience in farming and household size were found to be
negatively and significantly (P<0.1) associated to technical inefficiency. Similarly, farmers’
membership to farmer group, experience of the farmer, education level and extension
services were found to be negatively and significantly (P<0.1) related to allocative
inefficiency. Results further show that the mean technical, allocative, and economic
efficiency indices of smallholder beans farmers are 64.8%, 52.7%, and 43.62%,
respectively, meaning that the sampled farmers were relatively technically efficient than
they were allocatively and economically, with 56.38% room to expand productivity with
current input use and technology. The study concludes that, inputs such as improved seed
and fertilizers which were the major inputs that increase the output of common bean
production in the study area should be made available by all stakeholders (government and
private sectors) on time, in right amounts and at affordable prices to the farmers. The study
recommends that policies should be developed to improve the provision of extension
services to the farmers.
Description
Masters Thesis
Keywords
Economic efficiency, Smallholder, Common beans, Igamba, Mbozi, Songwe