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Analysis of technical efficiency and its determinants among tobacco producers in Uganda: An application of data envelopment analysis

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  • Midamba Dick Chune
  • Mustaf Mohamed Takoy
  • Odongkara Peter

Abstract

This study aimed at analyzing technical efficiency and its determinants among tobacco producers in Uganda. To achieve this, primary data were drawn from 200 tobacco farmers using semi-structured questionnaires. In order to determine the technical efficiency and its determinants, Data envelopment analysis and Tobit regression model were used for the analysis respectively. From the results, we observed that the mean TE was 49%, implying that the farmers were 51% inefficient. Furthermore, input prices, land size, farmers' age, farm income and farm location were found to be the determinants of technical efficiency. This study recommended that the government should subsidize farm inputs as well as training the farmers on input combinations in order to increase technical efficiency level.

Suggested Citation

  • Midamba Dick Chune & Mustaf Mohamed Takoy & Odongkara Peter, 2022. "Analysis of technical efficiency and its determinants among tobacco producers in Uganda: An application of data envelopment analysis," International Journal of Agricultural Research, Innovation and Technology (IJARIT), IJARIT Research Foundation, vol. 12(1), June.
    • Handle: RePEc:ags:ijarit:324165
    DOI: 10.22004/ag.econ.324165
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    References listed on IDEAS

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    1. Madau, Fabio A., 2012. "Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis(DEA) Models," MPRA Paper 41403, University Library of Munich, Germany.
    2. Štefan Bojnec & Imre Fertő & Attila Jámbor & József Tóth, 2014. "Determinants of technical efficiency in agriculture in new EU member states from Central and Eastern Europe," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(2), pages 197-217, June.
    3. Oecd, 2015. "Regional trade agreements and agriculture," OECD Food, Agriculture and Fisheries Papers 79, OECD Publishing.
    4. Daniel Micheal Okello & Jackline Bonabana-Wabbi & Basil Mugonola, 2019. "Farm level allocative efficiency of rice production in Gulu and Amuru districts, Northern Uganda," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-19, December.
    5. Keyser, John C., 2002. "The Costs and Profitability of Tobacco Compared to Other Crops in Zimbabwe," University of California at San Francisco, Center for Tobacco Control Research and Education qt76b25769, Center for Tobacco Control Research and Education, UC San Francisco.
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