An estimation of technical efficiency in Tanzanian sugarcane production: a case study of Mtibwa sugar estate outgrowers scheme
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Date
2003
Authors
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Publisher
Sokoine University of Agriculture
Abstract
This study describes the technical efficiency of sugarcane production and the factors
affecting this efficiency. The study was conducted in Turiani Division, Mvomero
District, Morogoro Region, Tanzania. Specifically, the study determined and compared
the level of technical efficiency of outgrower and non-outgrower farmers, and examined
the relationship between levels of efficiency and various specific factors. A cross
sectional single-visit survey that included randomly selected representative samples of
69 outgrower feimers and a cohort of 71 non-outgrower formers residing in the area
surrounding the Mtibwa Sugar Estate (MSE) was conducted during October and
November 2002. A pre-tested questionnaire was used to interview the farmers. To
estimate technical efficiency analysis was done using a (FRONTIER Version 4.1)
computer program for stochastic frontier production and cost function estimation
developed by Coelli, (1996). Technical efficiency was estimated using the Cobb-
Douglas production frontier assumed to have a truncated normal distribution. The results
of the estimation showed that there were significant positive relationships between age,
education, and experience with technical efficiency. Based on the findings, the study
puts forward three major recommendations: First, pairing less experienced &nners with
more experienced farmers, perhaps in some form of apprenticeship, would enhance the
rapid exchange of experience and information. Second, new forms of information
delivery need to be applied. Finally the possibility of encouraging collective sugar
processing among private cane producers need to be explored. These measures could
significantly improve the overall technical efficiency of outgrowers.
Description
Dissertation
Keywords
Tanzania sugar policy, Sugar production, Outgrower farmers