Abstract
The paper employed a Cobb-Douglas and translog of stochastic frontier profit function to measure the level of economic efficiency and its determinants. Structured questionnaires were used to collect data from 1,889 of sampling observations (591 for season 1, 678 for season 2, and 620 for season 3) randomly selected from designated locations in the study area. Difference of the study compared to past researches related to tropical fruits analyzed efficiency of three seasons instead of only focusing on efficiency of one season or total a year. The study established a mean economic efficiency of 26.19% in season 1, 27.15% in season 2, and 24.62% in season 3. The paper found out positive determinants of economic efficiency were farming experience, wrapping bag, market access among three seasons; education in season 1 and plant density in season 1 and 2. By contrast, the constraints to profit of mango producers were age, and payment for agro-input wholesale on ending of season in three seasons; credit access and classifying sale in first and second seasons; education in second and third seasons; plant density in season 3. Based on these findings, policy makers should focus on effective inputs models that would boost profit efficiency through conducting regular workshops and orchard demonstrations on using input materials effectively. More so, farmers should design mango gardens with appropriate trees density as well as encourage gardeners to use bags for wrapping mango fruits in farming in order to increase economic efficiency.
Highlights
Export of vegetables and fruit has contributed significantly to exporting value of agro-forestry and fishery
To select functional form for the data, hypothesis test base on the generalized likelihood ratio test (LR) was conducted. = - 2 {log [L (H0) – log [L (Ha)]} formula was used to carry out the likelihood ratio test
The finding stated that season 2 ranked first in terms of economic efficiency about 27.15%, followed by season 1 nearly 26.19%, and season 3 around 24.62%
Summary
Export of vegetables and fruit has contributed significantly to exporting value of agro-forestry and fishery. It has joined in exporting group of important agricultural products with 3.26 U.S billions in 2020 vegetables and fruit [1]. Economic efficiency is known as production efficiency is the capacity of a firm to maximize profit (when marginal value product is enough to counterbalance marginal cost). It is an economically efficient input/output combination must be attained in on the frontier and the expansion path way [4]. This study aims to know whether mango farmers in the study area are economically efficient in production, by estimating their technical, allocative, and economic efficiency
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