Estimation of the Economic Efficiency of Cashew Nut Production in Benin

This study contributes to the debate regarding the competitiveness of developing countries in the context of globalization. To take advantage of this trend, developing countries will have to position themselves properly through new policies and efficiency in production. In Benin, new orientation of agricultural policy concerns the diversification of exported products. Therefore, and due to the decrease of international price of cotton which represents the main exported crop, cashew nut, the second exported crop by Benin, becomes more interesting for government policy. The study quantified cashew nut production farmers’ efficiency using a stochastic production frontier and a cost function combined with numerical classification. Primary data were collected from a stratified random sample of 262 farmers in Benin. Using numerical classification, we distinguished three classes from cashew nut producers with an average plantation area of 3.6; 8.9 and 20 hectares. The results showed that scale effect was absent because larger farmers were not more efficient than the small ones. Results also revealed significant inefficient of input use in cashew nut production in Benin. Yet, about 39 % and 61 % of the cashew nuts’ farmers were technically and economically inefficient, respectively, indicating that farmers could increase output and households income through better use of available resources. The study also revealed that the farmers who were technically and economically inefficient have less experience in of cashew nut production, less contact with the extension structure and are not member of a farmers’ association.