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Economic Analysis of Groundnut Production in Kasungu District, Malawi: A production Economics Approach

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Listed:
  • Kapopo, Vincent
  • Assa, Maganga

Abstract

This study was rolled out to assess resource use efficiency in small scale groundnut production in Kasungu district. A household survey was administered to 42 groundnut farmers in Northern part of Kasungu district. The study has established that a farmers return MK2 for every Kwacha invested. The farmer incurs MK95 for every Kg of groundnut produced. The foregoing analysis of production function indicated that farm size, seed and labour are the important factors of production that affect groundnut output in the study area. The regression coefficients of these inputs were positive and statistically significant. Farm size had the highest MVPs as compared to other inputs. Seed was the second production factor with higher MVP indicating that farmers can increase their groundnut output by using optimal seedrate. The main constraints to marketing included low output prices and poor (unstandardized) measurement scales.

Suggested Citation

  • Kapopo, Vincent & Assa, Maganga, 2012. "Economic Analysis of Groundnut Production in Kasungu District, Malawi: A production Economics Approach," MPRA Paper 41593, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41593
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    File URL: https://mpra.ub.uni-muenchen.de/41593/2/MPRA_paper_41593.pdf
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    References listed on IDEAS

    as
    1. Kankwamba, Henry & Mangisoni, Julius H. & Simtowe, Franklin & Mausch, Kai & Siambi, Moses, 2012. "Improved Legume Seed Demand Systems in Central Malawi: What Do Farmers' Seed Expenditures Say about Their Preferences?," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123945, International Association of Agricultural Economists.
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      More about this item

      Keywords

      Groundnut; MVP; Smallholder farmer; Kasungu;
      All these keywords.

      JEL classification:

      • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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