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A network data envelopment analysis (NDEA) model of post-harvest handling: the case of Kenya’s rice processing industry

Author

Listed:
  • Eucabeth Majiwa

    (Jomo Kenyatta University of Agriculture and Technology)

  • Boon L. Lee

    (Queensland University of Technology)

  • Clevo Wilson

    (Queensland University of Technology)

  • Hidemichi Fujii

    (Nagasaki University
    Kyushu University)

  • Shunsuke Managi

    (Kyushu University)

Abstract

Food security is a global challenge. With rising world population and demand for food being compounded by resource and arable land constraints, raising the efficiency of food production and use has become increasingly important. While much of the research on food security is focused on farm efficiency and productivity, most neglect post-harvest (PH) handling which is critical in determining the availability of food. In this study, we employ the network Data Envelopment Analysis (DEA) model to evaluate the PH efficiency of milling, using data from Kenya’s rice processing industry. The results show lower efficiency scores when using a network DEA model, which reflects its greater discriminatory power when compared to the standard DEA approach. The study also quantified sources of productive efficiency using a fractional regression model and identified storage space and distance to market as having an impact on drying efficiency; while experience, age of mill, servicing and energy type influenced milling efficiency. The results suggest that policy makers should focus on investing in drying technologies and storage facilities to improve drying efficiency. To improve milling efficiency, policy recommendations include enhancing millers’ access to better technologies, investing in reliable sources of energy and providing PH handling workshops to reduce PH losses.

Suggested Citation

  • Eucabeth Majiwa & Boon L. Lee & Clevo Wilson & Hidemichi Fujii & Shunsuke Managi, 2018. "A network data envelopment analysis (NDEA) model of post-harvest handling: the case of Kenya’s rice processing industry," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(3), pages 631-648, June.
  • Handle: RePEc:spr:ssefpa:v:10:y:2018:i:3:d:10.1007_s12571-018-0809-0
    DOI: 10.1007/s12571-018-0809-0
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    More about this item

    Keywords

    Food security; Non-parametric; Efficiency; Fractional regression; Bootstrap DEA; Monte Carlo simulation;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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