Input and output technical efficiency and total factor productivity of wheat production in Tunisia

Abstract

This paper investigates farm level technical efficiency of production and its determinants in a sample of 51 cereal producing farms in Tunisia that focus on wheat production. The empirical findings show that the labor input factor has a minimal effect on production. In addition, the technical efficiency of wheat production in the sample varied widely, ranging from 52.63 to 94.62%, with a mean value of 77%. This suggests that, on average, wheat producing farmers could increase their production by as much as 23% through more efficient use of production inputs. The results of Timmer and Kopp indexes of technical inefficiency show that the level of inefficiency was related to farm size: small and large farms were shown to be more technically efficient than medium-sized farms. Alternatively, inputs could be reduced by 17% on average to produce the same quantity of wheat output. These results call for policies aimed at providing training programs and extension services and improving input management by wheat farmers.