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Financial performance and technical efficiency differentials for apicultural technologies in Nakaseke district, Uganda

Author

Listed:
  • Stephen W. Kalule

    (Gulu University, Uganda)

  • Edrisa Ssebbale

    (Nakaseke District Local Government, Uganda)

Abstract

Despite apiculture being potentially a large income earner, the financial performance of various apicultural technologies at farm-level is still poor yet very few studies have delved in this sub sector. Using a representative sample of 69 respondents from Nakaseke District, the Ordered Probit analysis revealed that farming experience, apiary plot size, shortness of distance of water source and hive colonization levels were the major positive determinants of apicultural financial performance. A Stochastic Frontier Analysis (SFA) suggested that 62% and 76% of the total variation in honey output in traditional and improved technologies was due to technical inefficiency. The high efficiency levels in traditional technology seemed to suggest that more honey output would only be realized through introduction of improved technologies rather than focusing on technical skills while the low efficiency in improved technology would be improved using technical training. The study recommended policy incentives ranging from specific commodity-targeting extension messages, provision of low interest rate credit products and baiting materials to enhance efficiency.

Suggested Citation

  • Stephen W. Kalule & Edrisa Ssebbale, 2014. "Financial performance and technical efficiency differentials for apicultural technologies in Nakaseke district, Uganda," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(1), pages 387-404, January-M.
    • Handle: RePEc:jda:journl:vol.48:year:2014:issue1:pp387-404
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    More about this item

    Keywords

    Apicultural technologies; production elasticities; technical efficiency; Uganda;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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