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Estimating efficiency levels and their determinants among small-scale sugarcane growers in northern KwaZulu-Natal, South Africa

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  • Bulagi, Mushoni

Abstract

South African small-scale sugarcane growers are faced with high production costs that may lead to agricultural inefficiency because of an inability to adopt newly available production technologies. This study employed the Data Envelope Analysis (DEA) approach and Truncated regression model to analyse data collected from 160 growers. The findings show technical, cost and allocative mean scores of 95.6,% 55.2%, and 57.5% in the Felixton region whereas 95.2%, 69.1% and 72.6% were achieved in the Amatikulu area, respectively. The age, extension support, and off-farm income variables had a negative effect on agricultural efficiency followed by positive effect of experience, education, access to credit and employment that showed positive relationships. The study proposes that the government should work jointly with mill owners to train and develop extension officers. Furthermore, it should subsidise inputs and equipment to address the poor allocation of resources because of financial constraints currently faced by small-scale sugarcane growers.

Suggested Citation

  • Bulagi, Mushoni, 2020. "Estimating efficiency levels and their determinants among small-scale sugarcane growers in northern KwaZulu-Natal, South Africa," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 56(2), February.
    • Handle: RePEc:ags:pojard:356092
    DOI: 10.22004/ag.econ.356092
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    References listed on IDEAS

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    1. Aparicio, Juan & Pastor, Jesus T. & Zofio, Jose L., 2015. "How to properly decompose economic efficiency using technical and allocative criteria with non-homothetic DEA technologies," European Journal of Operational Research, Elsevier, vol. 240(3), pages 882-891.
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    4. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, December.
    5. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 2008. "The Measurement of Productive Efficiency and Productivity Growth," OUP Catalogue, Oxford University Press, number 9780195183528, Decembrie.
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    7. Aye, G.C. & Mungatana, E.D., 2011. "Technological innovation and efficiency in the Nigerian maize sector: Parametric stochastic and non-parametric distance function approaches," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 50(4), September.
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