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Analysis of efficiency in sugarcane production: the case of men and women headed households in SONY sugar out -grower zone, Rongo and Trans-Mara districts, Kenya

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  • Nyanjong', Oyugi Johana
  • Lagat, Job
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    Abstract

    About one quarter of cane producers in SONY Outgrower Zone are women headed households. However, a number of studies have suggested that women in rural areas are more disadvantaged in terms of accessing education, land, credit, and extension services. If this is the case, women cane farmers would be expected to be less efficient compared to men farmers. Before this can be concluded, there was need to establish whether differences in economic efficiency between men and women headed households exist in cane growing. The objectives of the research were; to characterize men and women headed cane growing households, to evaluate the relationship between institutional factors and gender, and to determine the differences in economic efficiency between men and women managed sugarcane farms. A multi stage sampling procedure was employed to select 205 active sugarcane farmers. A dual parametric stochastic decomposition technique was employed to disaggregate the components of economic efficiency. FRONTIER 4.1 program was used to derive maximum likelihood estimates and farm level technical efficiencies. A two limit Tobit model was then used to determine the influence of selected socio-economic and institutional variables on farm level technical, allocative and economic efficiency. Results showed that men headed households had a mean technical efficiency of 67.6%, a mean allocative efficiency of 82.48% and a mean economic efficiency of 58.0%. Women headed households had a mean technical efficiency of 72.0%, a mean allocative efficiency of 83.15% and a mean economic efficiency of 62.5%. Land under sugarcane cultivation was the single most important contributor to farmers’ efficiency. Women managed farms were on average more technically, allocative and economically efficient than men managed farms. Membership to outgrower associations in addition to encouraging increase in human capital will be important in enhancing farmers’ efficiency.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40796.

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    Date of creation: 13 Jun 2012
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    Handle: RePEc:pra:mprapa:40796

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    Keywords: efficiency; Kenya; sugarcane productivity; stochastic frontier functions;

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    1. Msuya, Elibariki & Ashimogo, Gasper, 2005. "Estimation of Technical Efficiency in Tanzanian Sugarcane Production: A Case Study of Mtibwa Sugar Estate Outgrowers Scheme," MPRA Paper 3747, University Library of Munich, Germany.
    2. North, Douglass C., 1993. "Economic Performance through Time," Nobel Prize in Economics documents, Nobel Prize Committee 1993-2, Nobel Prize Committee.
    3. Alvarez, Antonio & Arias, Carlos, 2004. "Technical efficiency and farm size: a conditional analysis," Agricultural Economics, Blackwell, Blackwell, vol. 30(3), pages 241-250, May.
    4. Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 15(1), September.
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    6. Devadoss, Stephen & Kropf, Jurgen, 1996. "Impacts of trade liberalizations under the Uruguay round on the world sugar market," Agricultural Economics, Blackwell, Blackwell, vol. 15(2), pages 83-96, November.
    7. Abdulai, Awudu & Huffman, Wallace, 2000. "Structural Adjustment and Economic Efficiency of Rice Farmers in Northern Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 48(3), pages 503-20, April.
    8. Binam, Joachim Nyemeck & Tonye, Jean & wandji, Njankoua & Nyambi, Gwendoline & Akoa, Mireille, 2004. "Factors affecting the technical efficiency among smallholder farmers in the slash and burn agriculture zone of Cameroon," Food Policy, Elsevier, vol. 29(5), pages 531-545, October.
    9. Udry, Christopher & Hoddinott, John & Alderman, Harold & Haddad, Lawrence, 1995. "Gender differentials in farm productivity: implications for household efficiency and agricultural policy," Food Policy, Elsevier, vol. 20(5), pages 407-423, October.
    10. Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics, Blackwell, Blackwell, vol. 15(1), pages 17-28, September.
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