Estimation of Technical Efficiency in Tanzanian Sugarcane Production: A Case Study of Mtibwa Sugar Estate Outgrowers Scheme
AbstractThis study describes the technical efficiency of sugarcane production and the factors affecting this efficiency. The study was conducted in Turiani Division, Mvomero District, Morogoro Region, Tanzania. Specifically, the study determined and compared the level of technical efficiency of outgrower and non-outgrower farmers, and examined the relationship between levels of efficiency and various specific factors. A cross sectional single-visit survey that included randomly selected representative samples of 140 outgrower and non-outgrower farmers was conducted. To estimate technical efficiency analysis was done using a (FRONTIER Version 4.1) computer program for stochastic frontier production and cost function estimation developed by Coelli, (1996). Technical efficiency was estimated using the Cobb-Douglas production frontier assumed to have a truncated normal distribution. The results of the estimation showed that there were significant positive relationships between age, education, and experience with technical efficiency.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 3747.
Date of creation: 2005
Date of revision:
Publication status: Published in Economic and Development Papers, Mzumbe University 1.1(2005): pp. 28-46
Technical efficiency; Outgrowers; Sugarcane; Morogoro; Tanzania;
Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
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