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Assessment of Technical Efficiency and Its Potential Determinants among Small-Scale Coffee Farmers in Rwanda

Author

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  • Jules Ngango

    (Department of Agricultural Economics, Chungnam National University, Daejeon 34134, Korea)

  • Seung Gyu Kim

    (Department of Agricultural Economics, Kyungpook National University, Daegu 41566, Korea
    Department of Agricultural Economics, Mississippi State University, Starkville, MS 39759, USA)

Abstract

Coffee production is the main economic activity for smallholder farmers in Rwanda; it is also a major export crop. However, Rwandan coffee production has been facing structural changes with a significant decline in production. Considering the importance of the coffee sector to rural livelihoods and its potential role in export earnings, there is a need to ensure that small-scale coffee farmers efficiently use scarce resources in their production activities. Thus, this study estimates the technical efficiency and possible sources of inefficiency in small-scale coffee farming in the Northern Province of Rwanda. Three hundred and twenty coffee farmers are sampled to carry out a simultaneous estimation of the stochastic production frontier and technical inefficiency model. The results indicate that the mean technical efficiency among small-scale coffee farmers is 82 percent, implying a potential to increase coffee production by 18 percent with the current level of resources and technology. Coffee production displays increasing returns to scale and factors such as education, access to credit, extension services, improved variety of coffee trees, cropping system, and land consolidation have a positive and significant effect on technical efficiency. Thus, development policies in the coffee sector might focus more on enhancing the accessibility of farmers to extension services and credit facilities. In addition, adoption of high-yielding and disease-resistant coffee varieties, better cropping systems, and management of coffee plantations in land consolidation might reduce technical inefficiency among coffee farmers in the Northern Province of Rwanda.

Suggested Citation

  • Jules Ngango & Seung Gyu Kim, 2019. "Assessment of Technical Efficiency and Its Potential Determinants among Small-Scale Coffee Farmers in Rwanda," Agriculture, MDPI, vol. 9(7), pages 1-12, July.
    • Handle: RePEc:gam:jagris:v:9:y:2019:i:7:p:161-:d:250592
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    4. Rodríguez, Orlando & Vrachioli, Maria & Sauer, Johannes, 2022. "Payments for environmental services and coffee production in Colombia: Technical efficiency across the world heritage status borders," Ecological Economics, Elsevier, vol. 200(C).
    5. Jolex, Aubrey, 2022. "Influence of agricultural extension services on technical efficiency of maize farmers in Malawi," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(1), March.
    6. Birara Endalew & Adugnaw Anteneh & Kassahun Tasie, 2022. "Technical Efficiency of Teff Production Among Smallholder Farmers: Beta Regression Approach," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 1076-1096, April.
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