IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/346850.html
   My bibliography  Save this article

Performance Measurement of Extensive Beef Cattle Farms in Botswana

Author

Listed:
  • Temoso, Omphile
  • Hadley, David
  • Villano, Renato

Abstract

This paper examines the technical efficiency of extensive beef farms in different regions of Botswana and attempts to explain differences in regional performance in terms of environmental and economic constraints. Using a panel dataset of 26 agricultural districts (distributed across six agro-ecological regions) for the period 2004 to 2012, we estimate technical efficiency (TE) indices using a standard stochastic production frontier and meta-technological gap ratios (MTR) with a meta-frontier approach. The study finds that farmers use available technology suboptimally and produce far less than potential output. The average TE indices range from as low as 0.40 for Maun, 0.71 for Western and to 0.79 for the Southern region. The mean MTR also varies substantially across regions; high for Western (0.83), Southern (0.80) and Francistown (0.79) regions and low for the Maun region (0.39). A low MTR for the Maun region is attributed to the re-occurrence of FMD and human and wildlife conflict in this region, restricting the ability of farmers to fully reach their potential output. The results of this study have important implications for policy targeting. The study results allow us to identify the differences in productive performance between beef producers in each region of Botswana, and hence where policies to improve production technologies could be focused.

Suggested Citation

  • Temoso, Omphile & Hadley, David & Villano, Renato, 2016. "Performance Measurement of Extensive Beef Cattle Farms in Botswana," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 54(4), March.
    • Handle: RePEc:ags:agreko:346850
    DOI: 10.22004/ag.econ.346850
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/346850/files/Performance%20Measurement%20of%20Extensive%20Beef%20Cattle%20Farms%20in%20Botswana.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.346850?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. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    2. Bahta, Sirak & Malope, Patrick, 2014. "Measurement of competitiveness in smallholder livestock systems and emerging policy advocacy: An application to Botswana," Food Policy, Elsevier, vol. 49(P2), pages 408-417.
    3. Fraser, I. & Cordina, D., 1999. "An application of data envelopment analysis to irrigated dairy farms in Northern Victoria, Australia," Agricultural Systems, Elsevier, vol. 59(3), pages 267-282, March.
    4. Víctor Moreira & Boris Bravo-Ureta, 2010. "Technical efficiency and metatechnology ratios for dairy farms in three southern cone countries: a stochastic meta-frontier model," Journal of Productivity Analysis, Springer, vol. 33(1), pages 33-45, February.
    5. Helfand, Steven M. & Levine, Edward S., 2004. "Farm size and the determinants of productive efficiency in the Brazilian Center-West," Agricultural Economics, Blackwell, vol. 31(2-3), pages 241-249, December.
    6. Getu Hailu & Scott Jeffrey & James Unterschultz, 2005. "Cost Efficiency for Alberta and Ontario Dairy Farms: An Interregional Comparison," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(2‐3), pages 141-160, June.
    7. Hossein Mehrabi Boshrabadi & Renato Villano & Euan Fleming, 2008. "Technical efficiency and environmental‐technological gaps in wheat production in Kerman province of Iran," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 67-76, January.
    8. Lakner, Sebastian & Brenes Muñoz, Thelma & Aedo, Edinson Rivera & Brümmer, Bernhard, 2013. "Technical Efficiency in the Chilean Agribusiness Sector – a Stochastic Meta-Frontier Approach," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152356, International Agricultural Trade Research Consortium.
    9. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
    10. Villano, Renato A. & Fleming, Euan M. & Fleming, Pauline, 2012. "Variations in regional productivity in Australian wool production," AFBM Journal, Australasian Farm Business Management Network, vol. 9(2), pages 1-12, December.
    11. Peter Bogetoft & Lars Otto, 2011. "Benchmarking with DEA, SFA, and R," International Series in Operations Research and Management Science, Springer, number 978-1-4419-7961-2, July-Dece.
    12. S. Samarajeewa & G. Hailu & S. R. Jeffrey & M. Bredahl, 2012. "Analysis of production efficiency of beef cow/calf farms in Alberta," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 313-322, January.
    13. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, October.
    14. David Mmopelwa & Tebogo B. Seleka, 2011. "Factors Underlying Communal Beef Cattle Marketing Decisions in Botswana: The role of public and private transfers," Working Papers 30, Botswana Institute for Development Policy Analysis.
    15. 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.
    16. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    17. Scott McDonald, 2002. "The Commodity Protocols of the Lomé Convention: the Case of Beef Exports from Botswana," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 407-427, July.
    18. Nan Jiang & Basil Sharp, 2015. "Technical efficiency and technological gap of New Zealand dairy farms: a stochastic meta-frontier model," Journal of Productivity Analysis, Springer, vol. 44(1), pages 39-49, August.
    19. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    20. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    21. Barnes, Andrew Peter & Revoredo-Giha, Cesar & Sauer, Johannes, 2011. "A metafrontier approach to measuring technical efficiencies across the UK dairy sector," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99369, European Association of Agricultural Economists.
    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. repec:ags:ijag24:346850 is not listed on IDEAS
    2. Bahta, Sirak & Baker, Derek & Malope, Patrick & Katijuongua, Hikuepi, 2015. "A metafronteir analysis of determinants of technical efficiency in beef farm types: an application to Botswana," 2015 Conference, August 9-14, 2015, Milan, Italy 211194, International Association of Agricultural Economists.
    3. Nguyen, Hoa-Thi-Minh & Do, Huong & Kompas, Tom, 2021. "Economic efficiency versus social equity: The productivity challenge for rice production in a ‘greying’ rural Vietnam," World Development, Elsevier, vol. 148(C).
    4. Temoso, Omphile & Villano, Renato & Hadley, David, 2016. "Evaluating the productivity gap between commercial and traditional beef production systems in Botswana," Agricultural Systems, Elsevier, vol. 149(C), pages 30-39.
    5. Asante, Bright O. & Temoso, Omphile & Addai, Kwabena N. & Villano, Renato A., 2019. "Evaluating productivity gaps in maize production across different agroecological zones in Ghana," Agricultural Systems, Elsevier, vol. 176(C).
    6. Roengchai Tansuchat, 2023. "A Copula-Based Meta-Stochastic Frontier Analysis for Comparing Traditional and HDPE Geomembranes Technology in Sea Salt Farming among Farmers in Phetchaburi, Thailand," Agriculture, MDPI, vol. 13(4), pages 1-23, March.
    7. Toba Stephen Olasehinde & Fangbin Qiao & Shiping Mao, 2022. "Performance of Nigerian Rice Farms from 2010 to 2019: A Stochastic Metafrontier Approach," Agriculture, MDPI, vol. 12(7), pages 1-13, July.
    8. Farnaz Pourzand & Mohammad Bakhshoodeh, 2014. "Technical effici ency and agricultural sustainability–technology gap of maize producers in Fars province of Iran," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(3), pages 671-688, June.
    9. Bravo-Ureta, Boris E. & Higgins, Daniel & Arslan, Aslihan, 2020. "Irrigation infrastructure and farm productivity in the Philippines: A stochastic Meta-Frontier analysis," World Development, Elsevier, vol. 135(C).
    10. Sirak Bahta & Amos Omore & Darek Baker & Iheanacho Okike & Berhanu Gebremedhin & Francis Wanyoike, 2021. "An Analysis of Technical Efficiency in the Presence of Developments Toward Commercialization: Evidence from Tanzania’s Milk Producers," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 502-525, June.
    11. Tai-Hsin Huang & Yi-Chun Lin & Kuo-Jui Huang & Yu-Wei Liao, 2022. "Comparing Cost Efficiency Between Financial and Non-financial Holding Banks and Insurers in Taiwan Under the Framework of Copula Methods and Metafrontier," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 29(4), pages 735-766, December.
    12. Gatti, Nicolas & Lema, Daniel & Brescia, Victor, 2015. "A Meta-Frontier Approach to Measuring Technical Efficiency and Technology Gaps in Beef Cattle Production in Argentina," 2015 Conference, August 9-14, 2015, Milan, Italy 211647, International Association of Agricultural Economists.
    13. Ather Hassan Dar & Somesh Kumar Mathur & Sila Mishra, 2021. "The Efficiency of Indian Banks: A DEA, Malmquist and SFA Analysis with Bad Output," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(4), pages 653-701, December.
    14. Aminu, F.O. & Ayinde, I.A., 2021. "Technical Efficiency and Technology Gap Ratio in Cocoa Production in Nigeria: A Stochastic Metafrontier-Tobit (Sm-Tobit) Approach," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 2(3), July.
    15. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2011. "Technical efficiency and technology gaps in beef cattle production systems in Kenya: A stochastic metafrontier analysis," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108947, Agricultural Economics Society.
    16. Villano, Renato & Asante, Bright Owusu & Bravo-Ureta, Boris, 2019. "Farming systems and productivity gaps: Opportunities for improving smallholder performance in the Forest-Savannah transition zone of Ghana," Land Use Policy, Elsevier, vol. 82(C), pages 220-227.
    17. Bopp, Carlos & Jara-Rojas, Roberto & Bravo-Ureta, Boris & Engler, Alejandra, 2022. "Irrigation water use, shadow values and productivity: Evidence from stochastic production frontiers in vineyards," Agricultural Water Management, Elsevier, vol. 271(C).
    18. Saeid Hajihassaniasl & Recep Kök, 2016. "Scale effect in Turkish manufacturing industry: stochastic metafrontier analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-17, December.
    19. Richard Adjei Dwumfour & Eric Fosu Oteng-Abayie & Emmanuel Kwasi Mensah, 2022. "Bank efficiency and the bank lending channel: new evidence," Empirical Economics, Springer, vol. 63(3), pages 1489-1542, September.
    20. Wanglin Ma & Kathryn Bicknell & Alan Renwick, 2019. "Feed use intensification and technical efficiency of dairy farms in New Zealand," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(1), pages 20-38, January.
    21. Chen, Ku-Hsieh, 2012. "Incorporating risk input into the analysis of bank productivity: Application to the Taiwanese banking industry," Journal of Banking & Finance, Elsevier, vol. 36(7), pages 1911-1927.

    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:agreko:346850. 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://edirc.repec.org/data/aeasaea.html .

    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.