An Assessment of Economic Efficiency of Smallholder Irish Potato Producers in Nyanga District of Zimbabwe
- April 1, 2021
- Posted by: RSIS
- Categories: Economics, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue II, February 2021 | ISSN 2454–6186
Ruvaraishe Tapera*, Dube Phamela and Nyasha Chipunza
Department of Agricultural Economics and Development, Manicaland State University of Applied Sciences
Corresponding author*
Abstract: The purpose of this study was to analyse the technical and resource use efficiency of the smallholder potato farmers in Nyanga District. Measuring the efficiency levels at farm level will help inform whether farmers are using the production resources to full potential given that efficiency can be used as an indication of performance A purposive sampling method was employed in selecting 10 villages with Irish potato producers, 180 respondents were selected using the systematic random sampling method. The Stochastic Frontier Approach with the application of the Cobb Douglas function and inefficiency was used to analyse technical efficiency while allocative efficiency of the production inputs was measured using Marginal Productivity Analysis. The results show that the mean technical efficiency is estimated at 55.5% with a minimum of 4.6% and a maximum of 84.2%. Seed, labour and fertilizers positively contributed towards the improvement in the level of efficiency. The analysis further revealed that age of the farmer negatively influenced technical efficiency and experience positively influenced efficiency. The results also show that the farmers are operating at increasing returns to scale with returns to scale coefficient of 1.131. Computed allocative efficiency indices of the inputs showed that seed (0.305) was over utilized while fertilizer (1.207) and labour (5.833) were underutilized. The analysis shows that 79% of the variation in the Irish potato output is as a result of technical inefficiency. In order to enhance technical efficiency levels of the farmers the government and stakeholders in the potato sector should facilitate training and support programmes targeted for younger farmers to encourage them to engage in production of the crop. Improved farmer’s education will help farmers to allocate their production resources more efficiently. Use of improved quality seed reduces the replanting and overutilization of seed in potato production. Adherence to recommended production practices can also ensure that fertilizers are used at economic rates.
Keywords: Irish Potato Production, Technical and Allocative efficiency, Stochastic Frontier Approach, returns to scale
I. INTRODUCTION
Given high unemployment levels prevailing in Zimbabwe, the horticultural sector offers strategies toward creating forward and backward linkages in value chains. With adequate attention, the sector is capable of penetrating international market thus generating foreign currency, creating employment and benefiting the economy as a whole.
