Analysis of Economic Efficiency: Case of Sweet Potato Seed Vine Production in Homabay County, Kenya

Abstract

Sweet potatoes are not only a nutritious, high value food for the daily diet, but also an important source of income. In the selected survey areas in the Lake Region of Kenya, sweet potato is amongst the major commercially grown crops. Therefore, in order to understand the profitability and performance of sweet potato producers in the study area, this study was implemented. Sweet potato is one of the main commercially produced crops in the selected survey areas in the lake region of Kenya. Therefore, this study was conducted to understand the profitability and performance of sweet potato producers in the study areas. The study employed Cost Function in the analyses of Economic Efficiency of Sweet Potato Seed Vine Production system in Kenya. A multi-stage random sampling technique was used to select sample size of 150 sweet potato vine producers for this study. By use of a structured questionnaire, data was collected on production input, output, input and output prices, characteristics of sampled farmer and plot. Using the maximum likelihood method, the variables of the cost function were estimated. Result revealed that the farm level cost- efficiency was about 56 percent. The research has shown that age and farm size were negative but significantly related to cost-efficiency at ten and one percent respectively. Gender, farming experience, Education, access extension to and credit were positive but significantly associated with cost-efficiency at one percent. The study advocates for policy decision that youthful farmers be inspired to venture into SP vine production and the government to enhance access to education, credit and extension services the ongoing farming.