Abstract
This research was financed by the Govan Mbeki Research and Development Centre. Abstract This main aim of this study was to determine the factors influencing efficiency and productivity of contracted and non-contracted tobacco farmers in Mount Darwin District of Zimbabwe. Data was collected from 380 randomly sampled smallholder farmers. The Data Envelopment Analysis (DEA) was used to estimate the efficiency scores for the tobacco farmers. The Tobit model censored to zero was used to evaluate the determinants of efficiency. The results showed that gender had a negative impact on both technical efficiency and economic efficiency. The probability of one being a male was likely to reduce economic efficiency by 0.022. However, there was a positive relationship between gender and allocative efficiency. The probability of one being a male was likely to result in increase in allocative efficient by 0.035. The results from the study showed that contracted farmers were more productive and efficient than non-contracted farmers. The ages of the farmer and education level were not significant in influencing the economic efficiencies of the farmers. Other variables like farming experience, production model, access to extension and farm size were statistically significant in influencing the economic efficiencies of tobacco farmers. The possible policy recommendations to improve efficiency of the tobacco farmers are drawn from the research findings. Keywords : technical efficiency, allocative efficiency; economic efficiency; data envelopment analysis, tobacco farmers, Mount Darwin District. DOI : 10.7176/JESD/10-10-05 Publication date :May 31 st 2019
Highlights
Tobacco plays a critical role in the Zimbabwean economy, it is worrisome that yields per hectare remain lower than what the former white commercial farmers used to produce prior to FTLRP
The results showed a positive relationship between gender and allocative efficiency
This finding contrasted with Meshesha (2011) who argued that experienced tobacco farmers tend to focus more on enjoying the profits and this has a negative effect on efficiency as they may decide not to apply sufficient critical inputs like fertilisers
Summary
Tobacco plays a critical role in the Zimbabwean economy, it is worrisome that yields per hectare remain lower than what the former white commercial farmers used to produce prior to FTLRP. According to the TIMB (2017), the former white commercial farmers used to produce yield per hectare above 2500kg compared to the current figures ranging below 2000kg per hectare. The lower yields could be a result of inefficiencies along the production and marketing cycles. As a result of lack of efficiencies, farmers are failing to realise their full income potentials which makes them remain trapped in seabed of income insecurities, chronic vulnerability and poverty. Improving productivity and efficiency is likely to result in tobacco farmers realising better yields per hectare, improved tobacco quality leading to higher incomes, improved welfare of the tobacco farmers and long term sustainability of the value chain. Higher efficiency and productivity is going to result in Zimbabwe regaining its former status as one of the major exporters of flue cured tobacco in the world
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