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An Assessment of Economic Efficiency of Smallholder Irish Potato Producers in Nyanga District of Zimbabwe

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  • Ruvaraishe Tapera

    (Department of Agricultural Economics and Development, Manicaland State University of Applied Sciences)

  • Dube Phamela

    (Department of Agricultural Economics and Development, Manicaland State University of Applied Sciences)

  • Nyasha Chipunza

    (Department of Agricultural Economics and Development, Manicaland State University of Applied Sciences)

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.

Suggested Citation

  • Ruvaraishe Tapera & Dube Phamela & Nyasha Chipunza, 2021. "An Assessment of Economic Efficiency of Smallholder Irish Potato Producers in Nyanga District of Zimbabwe," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(2), pages 434-444, February.
    • Handle: RePEc:bcp:journl:v:5:y:2021:i:2:p:434-444
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    References listed on IDEAS

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    1. Grasian Mkodzongi & Peter Lawrence, 2019. "The fast-track land reform and agrarian change in Zimbabwe," Review of African Political Economy, Taylor & Francis Journals, vol. 46(159), pages 1-13, January.
    2. Abedullah & Khuda Bakhsh & Bashir Ahmad, 2006. "Technical Efficiency and its Determinants in Potato Production, Evidence from Punjab, Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 11(2), pages 1-22, Jul-Dec.
    3. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    4. 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.
    5. 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.
    6. Agerie Nega Wassihun & Tigabu Dagnew Koye & Abebe Dagnew Koye, 2019. "Analysis of technical efficiency of potato (Solanum tuberosum L.) production in Chilga District, Amhara National Regional State, Ethiopia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-18, December.
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