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Cost efficiency, Morishima, Allen-Uzawa and Cross-Price elasticities among Irish potato farmers in Dedza district, Malawi

Author

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  • Maganga M. Assa

    (Department of Agricultural and Applied Economics, Bunda College of Agriculture, University of Malawi, Lilongwe, Malawi)

  • Abdi-Khalil Edriss

    (Department of Agricultural and Applied Economics, Bunda College of Agriculture, University of Malawi, Lilongwe, Malawi)

  • Greenwell C. Matchaya

    (The International Water Management Institute, ReSAKSS-SA, Pretoria, R.S.A.)

Abstract

Malawi has experienced a forward shift in its demand for Irish potato (Solanum tuberosum) consumption. Given limited resources at farmers' disposal, meeting the growing demand will require farmers to follow the efficient path of the farm production resources. This paper, therefore, is an attempt to measure the cost efficiency of smallholder Irish potato farmers in Dedza district of Malawi using a translog cost function, inefficiency effect model and input elasticities derived from a system of cost share equations estimated by Iterated Seeming Unrelated Regression method. A multi-stage random sampling technique was used to select 200 Irish potato farmers in Dedza in 2011 from whom input-output data and their prices were obtained. Results indicate that the mean cost efficiency of Irish potato production in Dedza District is 0.67 with scores ranging between 0.15 and 0.94. The cost efficiency differences are significantly explained by non-farm employment, education, credit access, farm experience, degree of specialization, household size and frequency of weeding. The highest input substitution existed between labour and fertilizer, followed by seed-fertilizer. One policy issue is raised; credit should be extended to Irish potato farmers to enable them purchase farm inputs.

Suggested Citation

  • Maganga M. Assa & Abdi-Khalil Edriss & Greenwell C. Matchaya, 2013. "Cost efficiency, Morishima, Allen-Uzawa and Cross-Price elasticities among Irish potato farmers in Dedza district, Malawi," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 6(1), pages 59-73, April.
    • Handle: RePEc:tei:journl:v:6:y:2013:i:1:p:59-73
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    Cited by:

    1. Kangile, Rajabu Joseph, 2015. "Efficiency In Production By Smallholder Rice Farmers Under Cooperative Irrigation Schemes In Pwani And Morogoro Regions, Tanzania," Research Theses 265681, Collaborative Masters Program in Agricultural and Applied Economics.
    2. Joseph Rajabu Kangile & Reuben M. J. Kadigi & Charles Peter Mgeni & Bernadetha Pantaleo Munishi & Japhet Kashaigili & Pantaleo K. T. Munishi, 2021. "Dynamics of Coffee Certifications in Producer Countries: Re-Examining the Tanzanian Status, Challenges and Impacts on Livelihoods and Environmental Conservation," Agriculture, MDPI, vol. 11(10), pages 1-18, September.
    3. Joseph Kangile, Rajabu, 2015. "Efficiency in Production By Smallholder Rice Farmers Under Cooperative Irrigation Schemes in Pwani and Morogoro Regions, Tanzania," Research Theses 243447, Collaborative Masters Program in Agricultural and Applied Economics.

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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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