Abstract
This study empirically investigates farm level technical efficiency of production and its associated determinants for Marirangwe smallholder dairy farmers, in Manyame district, Mashonaland east province in Zimbabwe. Using a stochastic production frontier model and a two step estimation approach, results for a sample of 27 smallholder farmers indicates that for the agricultural season 2013/2014, the average efficiency level was 54.9% particularly suggesting that dairy farmers are operating far below their production potentials. In particular, age, veterinary and extension, gender, farming experience and market performance were found to be significant factors affecting technical efficiency of the dairy farmers. The results of the study reveal that market performance, farming experience and gender positively affect the efficiency of dairy farmers. The results on gender implies that male farmers are more inefficient in dairy farming when compare to their female counterparts. On the other hand, age and veterinary and extension services was found to be positively associated technical inefficiency. Key words: Technical efficiency, dairy farmers, stochastic frontier analysis, marirangwe, smallholder, two step approach.
Highlights
The agricultural sector is a key sector in Zimbabwe
Log eff en = α0 + α1Age + α2Gende + α3 e p + α4 pe f + α5 e e + w eff en is the logarithm of technical inefficiency, age is measures as the number of years since birth of the responded, gender is a dummy variable for the sex of the responded and e p is farming experience measured as the number of years the responded has been involved in dairy farming, pe f is market performance and measures the perception of the farmer on the performance of the market and e e is veterinary and extension services measuring the quality and availability of the extension services to the farmer
The study investigates the farm level technical efficiency of production and its determinants in Zimbabwe dairy farming using the case of Marirangwe smallholder dairy farmers in Seke district of Mashonaland East province
Summary
A stochastic frontier analysis on farm level technical efficiency in Zimbabwe: A case of Marirangwe smallholder dairy farmers. This study empirically investigates farm level technical efficiency of production and its associated determinants for Marirangwe smallholder dairy farmers, in Manyame district, Mashonaland east province in Zimbabwe. Age, veterinary and extension, gender, farming experience and market performance were found to be significant factors affecting technical efficiency of the dairy farmers. The results of the study reveal that market performance, farming experience and gender positively affect the efficiency of dairy farmers. The results on gender implies that male farmers are more inefficient in dairy farming when compare to their female counterparts. Age and veterinary and extension services was found to be positively associated technical inefficiency
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