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Explaining Productivity Variation among Smallholder Maize Farmers in Tanzania

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  • Msuya, Elibariki Emmanuel
  • Hisano, Shuji
  • Nariu, Tatsuhiko

Abstract

Using a stochastic frontier production model proposed by Battese and Coelli (1995), the paper estimates the levels of technical efficiency of 233 smallholder maize farmers in Tanzania and provides an empirical analysis of the determinants of inefficiency with the aim of finding way to increase smallholders’ maize production and productivity. Results shows that smallholder productivity is very low and highly variable, ranging form 0.01t/ha to 6.77t/ha, averaging 1.19t/ha. Technical efficiencies of smallholder maize farmers range from 0.011 to 0.910 with a mean of 0.606. Low levels of education, lack of extension services, limited capital, land fragmentation, and unavailability and high input prices are found to have a negative effect on technical efficiency. Smallholder farmers using hand-hoe and farmers with cash incomes outside their farm holdings (petty business) are found to more efficient. However, farmers who use agrochemicals are found to be less efficient. Policy implications drawn from the results include a review of agricultural policy with regard to renewed public support to revamp the agricultural extension system, and interventions towards improving market infrastructure in order to reduce the transaction element in the input and output marketing.

Suggested Citation

  • Msuya, Elibariki Emmanuel & Hisano, Shuji & Nariu, Tatsuhiko, 2008. "Explaining Productivity Variation among Smallholder Maize Farmers in Tanzania," MPRA Paper 14626, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:14626
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
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    Cited by:

    1. Baha, Michael & Temu, Andrew & Philip, Damas, 2013. "Sources of Technical Efficiency Among Smallholders Maize Farmers in Babati District, Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 1(2), July.
    2. Etim, Nsikak-Abasi A. & Udoh, Edet J., 2014. "Identifying Sources Of Efficiency Among Resource Poor Indigenous Vegetable Farmers In Uyo, Nigeria," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(1), pages 1-7, January.
    3. Asekenye, Cresensia & Bravo-Ureta, Boris E. & Mukherjee, Deep & Okoko, Nasambu & Kalule Okello, David & Kidula, Nelson & Deom, Mike & Puppala, Naveen, 2013. "Productivity Gaps Among Smallholder Groundnut Farmers: A Comparative Analysis for Uganda and Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160673, African Association of Agricultural Economists (AAAE).
    4. Msangi, Haji Athumani, 2017. "Examining The Inverse Relationship Between Farm Size And Efficiency In Tanzanian Agriculture," Research Theses 276448, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Mwale, Martin & Kamninga, Tony Mwenda & Cassim, Lucius, 2021. "The Effects of the Malawi Farm Input Subsidy Program on Household per-Capita Consumption Convergence," 2021 Conference, August 17-31, 2021, Virtual 315045, International Association of Agricultural Economists.
    6. Haile, Kusse & Gebre, Engida & Workye, Agegnehu, 2020. "Does Technical Efficiency Matter for Ethiopia’s Sorghum Producer Farmers? A Study on its Implication for Productivity Improvement," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 29(01), April.
    7. Mbesa, Baraka, 2017. "A Comparative Analysis Of Business Models Of Two-Wheel Tractors In Babati District, Manyara Region, Tanzania," Research Theses 276450, Collaborative Masters Program in Agricultural and Applied Economics.
    8. John K M & Wayo Seini, 2013. "Technical Efficiency Analysis of Maize Farmers in the Eastern Region of Ghana," Journal of Social and Development Sciences, AMH International, vol. 4(2), pages 84-99.
    9. Mathias, Karangwa, 2010. "The Effect of Land Fragmentation on the Productivity and Technical Efficiency of Smallholder Maize Farms in Southern Rwanda," Research Theses 243457, Collaborative Masters Program in Agricultural and Applied Economics.
    10. Muzungu Paul, Gatemberezi, 2011. "Technical Efficiency of Smallholder Irish Potato Production in Nyabihu District, Rwanda," Research Theses 243460, Collaborative Masters Program in Agricultural and Applied Economics.

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    More about this item

    Keywords

    Productivity variation; smallholder farmers; technical efficiency; maize; tanzania;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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