IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v4y2020i6p149-163.html
   My bibliography  Save this article

Analysis of Technical Efficiency of Small Scale Tea Production in Nandi Hills – Nandi County: A Data Envelopment Analysis Approach

Author

Listed:
  • Daniel Kipruto Tuitoek

    (Department of Economic, Moi University, Kenya)

  • Clement Cheruiyot Tison

    (Department of Economic, Moi University, Kenya)

  • Lydia Jebichii

    (Department of Agricultural Economics and Resource Management, Moi University, Kenya)

Abstract

Tea production has largely spread from its original land of China to so many parts of the world. Since tea was discovered in China, it has travelled the world conquering the thirsts of virtually every country on the planet. Tea is the most popular beverage in the world as well as the healthiest. It has become one of the most important economic activities to the small-scale farmers in Kenya and employs greater population in other related businesses. However, production in this sector doesn’t match the high demand in the market and socio-economic sustainability of the livelihood. This study is therefore set to analyze the technical efficiency in small-scale tea production in Nandi Hills region, Nandi County and suggest the necessary measures that should be adopted by farmers to improve their production efficiency. This study was based in Nandi County from where the primary data was sourced from farmers in the field and was supplemented by secondary data that was also elicited from journals, research reports, Government reports, website among others. Purposive sampling was used to select farmers and was appended by simple random sampling to form a sample frame of 40 farmers. Data was collected from tea farmers between July and September 2014 by use of pre-tested semi-structured questionnaires administered by the researcher. Information on yields and inputs used to grow tea by each household were collected. Descriptive data analysis was used to describe qualitative data while quantitative data was also analyzed using inferential statistics both done by Data Envelopment Analysis (DEA) models. This study hypothesized that small-scale tea production is economically inefficient, and its key limitation is the time limit for the study. It also assumed that data collection and analysis were valid and reliable.DEA model was used to determine the technical relationship between inputs and outputs. The study’s significance was to draw out policies and recommendations that may be provided to farmers to improve efficiency in production. The main finding is efficiency scores of tea production varied widely ranging from 0.1093750 to 1.0. Farmers who allocated small parcel of land to tea production were more efficient. Economic factors such as size of land and land allocated to tea significantly determined the level of technical efficiency of tea production in Nandi Hills.

Suggested Citation

  • Daniel Kipruto Tuitoek & Clement Cheruiyot Tison & Lydia Jebichii, 2020. "Analysis of Technical Efficiency of Small Scale Tea Production in Nandi Hills – Nandi County: A Data Envelopment Analysis Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(6), pages 149-163, June.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:6:p:149-163
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-4-issue-6/149-163.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/virtual-library/papers/analysis-of-technical-efficiency-of-small-scale-tea-production-in-nandi-hills-nandi-county-a-data-envelopment-analysis-approach/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jean-Paul Chavas & Ragan Petrie & Michael Roth, 2005. "Farm Household Production Efficiency: Evidence from The Gambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 160-179.
    2. 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, January.
    3. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 2008. "The Measurement of Productive Efficiency and Productivity Growth," OUP Catalogue, Oxford University Press, number 9780195183528.
    4. Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2002. "Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non‐parametric Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 607-626, November.
    5. Nagarajan, Latha & Audi, Patrick & Jones, Richard & Smale, Melinda, 2007. "Seed provision and dryland crops in the semiarid regions of Eastern Kenya:," IFPRI discussion papers 738, International Food Policy Research Institute (IFPRI).
    6. Barr, Nicholas, 2004. "Economics of the Welfare State," OUP Catalogue, Oxford University Press, edition 4, number 9780199264971.
    7. K. Kalirajan, 1981. "An Econometric Analysis of Yield Variability in Paddy Production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 29(3), pages 283-294, November.
    8. M. Ali & M. A. Chaudhry, 1990. "Inter‐Regional Farm Efficiency In Pakistan'S Punjab: A Frontier Production Function Study," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 62-74, January.
    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. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    2. Weiying Liu & Sriram Shankar & Lihua Li, 2021. "Is specialization a strategy to improve farm efficiency in northwest China?," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1695-1710, August.
    3. Hasanov, Shavkat, 2011. "Technical efficiency under resource scarcity: Non-parametric approach Uzbekistan agriculture," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114563, European Association of Agricultural Economists.
    4. 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.
    5. Lundgren, Tommy & Marklund, Per-Olov & Zhang, Shanshan, 2016. "Industrial energy demand and energy efficiency – Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 43(C), pages 130-152.
    6. Valentin Zelenyuk, 2023. "Productivity analysis: roots, foundations, trends and perspectives," Journal of Productivity Analysis, Springer, vol. 60(3), pages 229-247, December.
    7. Alexandros Theodoridis & Sotiria Vouraki & Emmanuel Morin & Georgia Koutouzidou & Georgios Arsenos, 2022. "Efficiency Analysis and Identification of Best Practices and Innovations in Dairy Sheep Farming," Sustainability, MDPI, vol. 14(21), pages 1-12, October.
    8. Munir Ahmad & Sarfraz Khan Qureshi, 1999. "Recent Evidence on Farm Size and Land Productivity: Implications for Public Policy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1135-1153.
    9. Standfuss, Thomas & Hirte, Georg & Schultz, Michael & Fricke, Hartmut, 2024. "Efficiency assessment in European air traffic management—A fundamental analysis of data, models, and methods," Journal of Air Transport Management, Elsevier, vol. 115(C).
    10. Donald F. Vitaliano, 2021. "Information asymmetry in fire insurance: a frontier approach," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 45(4), pages 764-773, October.
    11. Lukáš Čechura & Zdeňka Žáková Kroupová, 2021. "Technical Efficiency in the European Dairy Industry: Can We Observe Systematic Failures in the Efficiency of Input Use?," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    12. Abdul Wadud, 2013. "Impact of Microcredit on Agricultural Farm Performance and Food Security in Bangladesh," Working Papers 14, Institute of Microfinance (InM).
    13. Finneran, E. & Crosson, p., 2013. "Effects of scale, intensity and farm structure on the income efficiency of Irish beef farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 2(4), pages 1-12, July.
    14. Dolšak, Janez & Hrovatin, Nevenka & Zorić, Jelena, 2022. "Estimating the efficiency in overall energy consumption: Evidence from Slovenian household-level data," Energy Economics, Elsevier, vol. 114(C).
    15. Kristof De Witte & Rui Marques, 2010. "Designing performance incentives, an international benchmark study in the water sector," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(2), pages 189-220, June.
    16. Boris Bravo-Ureta & William Greene & Daniel Solís, 2012. "Technical efficiency analysis correcting for biases from observed and unobserved variables: an application to a natural resource management project," Empirical Economics, Springer, vol. 43(1), pages 55-72, August.
    17. Rita, Rui & Marques, Vitor & Bárbara, Diogo & Chaves, Inês & Macedo, Pedro & Moutinho, Victor & Pereira, Mariana, 2023. "Crossing non-parametric and parametric techniques for measuring the efficiency: Evidence from 65 European electricity Distribution System Operators," Energy, Elsevier, vol. 283(C).
    18. Kapoor, Rajni & Das, Nimai, 2021. "A Pragmatic Study for Enhancing Agricultural Efficiency Through Labor Freedom," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 11(04), January.
    19. Boussemart, Jean-Philippe & Leleu, Hervé & Parvulescu, Raluca, 2022. "Value-based performance and its decomposition into direct price and quantity effects," European Journal of Operational Research, Elsevier, vol. 303(1), pages 298-311.
    20. 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).

    More about this item

    Statistics

    Access and download statistics

    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:bcp:journl:v:4:y:2020:i:6:p:149-163. 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: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    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.