PRODUCTION RELATIONS AND TECHNICAL INEFFICIENCY IN PISTACHIO FARMING SYSTEMS IN KERMAN PROVINCE OF IRAN

Abstract

ABSTRACT This paper reports on an analysis of production and technical inefficiency in pistachio farming systems in Iran. A random sample of 233 farmers was selected from the province of Kerman for two years, 2003 and 2004, which is a larger data set with a wider spatial coverage than used in previous studies of pistachio production. Technical inefficiency indices are computed using a stochastic frontier production function assuming a translog form. The study also reports on productivity and efficiency differences between varieties of pistachio trees and provides estimates of age-yield and density-yield functions. Estimates of mean technical efficiency in 2003 and 2004 are 65.2 per cent and 63.7 per cent but they are not significantly different from each other. The mean technical efficiency scores across both years for plantations of the Kalleh-Ghuchi, Akbari, Fandoghi varieties and for plantations containing a mixture of all three varieties are 65.8 per cent, 59.4 per cent 62.4 per cent and 78.7 per cent, respectively. Farmers cultivating the more traditional mixed-variety plantation are significantly more technically efficient than those specializing in one of the three tree varieties. We found a positive relation between technical efficiency and experience, and suggest that extension programmes should be aimed at the less experienced farmers.