IDEAS home Printed from https://ideas.repec.org/a/ags/afjecr/264288.html
   My bibliography  Save this article

Determinants of Technical Efficiency of Smallholders Dairy Farmers in Njombe District, Tanzania

Author

Listed:
  • Mbehoma, Petermus M.
  • Mutasa, Felician

Abstract

This paper is based on a study conducted in nine dairy cattle keeping villages of Njombe district in Tanzania with the overall objective of estimating Technical Efficiency (TE) and analyzing factors influencing Technical Inefficiency (TI) of smallholder dairy farmers. Cobb-Douglas stochastic frontier production function in which the parameters for the production frontier and for the inefficiency model were estimated jointly using the maximum likelihood technique on cross section data of 81 smallholder dairy farmers. Findings reveal that majority of respondents (61.7%) had TE below 50%. The implication of these findings is that majority of the respondents were technically inefficient and that the value of dairy production could be increased by 54.54% through better allocation and use of available resources. The inefficiency model showed that age, gender, education level, experience of the farmer and selling to processor are major factors having a significant and positive influence on the farmers’ technical inefficiency while marital status and use of hired labor are the major factors having a significant and negative influence on the farmers’ technical inefficiency.

Suggested Citation

  • Mbehoma, Petermus M. & Mutasa, Felician, 2013. "Determinants of Technical Efficiency of Smallholders Dairy Farmers in Njombe District, Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 1(2), July.
    • Handle: RePEc:ags:afjecr:264288
    DOI: 10.22004/ag.econ.264288
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/264288/files/116292-323104-1-SM.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/264288/files/116292-323104-1-SM.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.264288?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cabrera, Victor E. & Solis, Daniel & del Corral, Julio, 2010. "The Effect of Traditional Practices in the Efficiency of Dairy Farms in Wisconsin," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 55373, Southern Agricultural Economics Association.
    2. Ajibefun, Igbekele A., 2002. "Analysis of Policy Issues in Technical Efficiency of Small Scale Farmers Using the Stochastic Frontier Production Function: With Application to Nigerian Farmers," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 7015, International Farm Management Association.
    3. Wubeneh, Nega & Ehui, Simeon K., 2006. "Technical Efficiency of Smallholder Dairy Farmers in the Central Ethiopian Highlands," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25640, International Association of Agricultural Economists.
    4. Ben-Belhassen, Boubaker & Womack, Abner W., 2000. "Measurement And Explanation Of Technical Efficiency In Missouri Hog Production," 2000 Annual meeting, July 30-August 2, Tampa, FL 21819, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Tyler, William G & Lee, Lung-Fei, 1979. "On Estimating Stochastic Frontier Production Functions and Average Efficiency: An Empirical Analysis with Colombian Micro Data," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 436-438, August.
    6. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    7. Abid A. Burki & Mushtaq A. Khan, 2008. "Milk Supply Chain and Efficiency of Smallholder Dairy Producers in Pakistan," Microeconomics Working Papers 22252, East Asian Bureau of Economic Research.
    8. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-286, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. OBAYELU, Abiodun Elijah & MONCHO, Cocou Muriel Dorian & DIAI, Chukwunoso Christopher, 2016. "Technical Efficiency Of Production Of Quality Protein Maize Between Adopters And Non-Adopters, And The Determinants In Oyo State, Nigeria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(2), pages 1-10, October.
    2. Gebregziabher, Gebrehaweria & Namara, Regassa E. & Holden, Stein, 2012. "Technical Efficiency of Irrigated and Rain-Fed Smallholder Agriculture in Tigray, Ethiopia: A Comparative Stochastic Frontier Production Function Analysis," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(3), pages 1-24, August.
    3. Evenson, Robert E. & Kimhi, Ayal & Desilva, Sanjaya, 2000. "Supervision And Transaction Costs: Evidence From Rice Farms In Bicol, The Philippines," 2000 Annual meeting, July 30-August 2, Tampa, FL 21788, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1631-1641.
    5. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    6. Daniel Solís & Boris E. Bravo‐Ureta & Ricardo E. Quiroga, 2009. "Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 202-219, February.
    7. Holtkamp, A.M. & Brummer, B., 2018. "Environmental efficiency of smallholder rubber production," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277518, International Association of Agricultural Economists.
    8. Ligia Alba Melo-Becerra & Luis E. Arango & Oscar Iván Ávila-Montealegre & Jhorland Ayala-García & Leonardo Bonilla-Mejía & Jesús Alonso Botero-García & Carolina Crispin-Fory & Manuela Cardona & Daniel, 2023. "Aspectos financieros y fiscales del sistema de salud en Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, issue 106, pages 1-92, October.
    9. Victor Moutinho & Mara Madaleno, 2021. "Assessing Eco-Efficiency in Asian and African Countries Using Stochastic Frontier Analysis," Energies, MDPI, vol. 14(4), pages 1-17, February.
    10. Kox, Henk L.M. & Leeuwen, George van & Wiel, Henry van der, 2010. "Competitive, but too small - productivity and entry-exit determinants in European business services," MPRA Paper 24389, University Library of Munich, Germany.
    11. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    12. Noel Uri, 2003. "The Effect of Incentive Regulation in Telecommunications in the United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 37(2), pages 169-191, May.
    13. Subal C. Kumbhakar & Christopher F. Parmeter & Valentin Zelenyuk, 2022. "Stochastic Frontier Analysis: Foundations and Advances I," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 8, pages 331-370, Springer.
    14. Roy, Manish & Mazumder, Ritwik, 2016. "Technical Efficiency of Fish Catch in Traditional Fishing: A Study in Southern Assam," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 5(1), pages 55-68.
    15. Cristian BARRA & Roberto ZOTTI, 2019. "Bank Performance, Financial Stability And Market Concentration: Evidence From Cooperative And Non‐Cooperative Banks," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 103-139, March.
    16. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    17. Edward Ebo ONUMAH & Bernhard BRÜMMER & Gabriele HÖRSTGEN-SCHWARK, 2010. "Productivity of the hired and family labour and determinants of technical inefficiency in Ghana's fish farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(2), pages 79-88.
    18. Brown, Colin G. & Kai, Chen, 1999. "Land reform, household specialisation and rural development in China," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123790, Australian Agricultural and Resource Economics Society.
    19. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2010. "A Stochastic Frontier Model for Discrete Ordinal Outcomes: A Health Production Function," Department of Economics - Working Papers Series 1092, The University of Melbourne.
    20. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjecr:264288. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.ajol.info/index.php/ajer/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.