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Estimation of Technical Efficiency in Tanzanian Sugarcane Production: A Case Study of Mtibwa Sugar Estate Outgrowers Scheme

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  • Msuya, Elibariki
  • Ashimogo, Gasper

Abstract

This 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.

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:3747
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    File URL: https://mpra.ub.uni-muenchen.de/3747/1/MPRA_paper_3747.pdf
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    References listed on IDEAS

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    1. Basnayake, B.M.J.K. & Gunaratne, L.H.P., 2002. "Estimation of Technical Efficiency and It's Determinants in the Tea Small Holding Sector in the Mid Country Wet Zone of Sri Lanka," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 4.
    2. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    3. Greene, William H., 1990. "A Gamma-distributed stochastic frontier model," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 141-163.
    4. repec:ilo:ilowps:310550 is not listed on IDEAS
    5. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    6. Mbilinyi M. & Semakafu M., 1995. "Gender and employment on sugar cane plantations in Tanzania," ILO Working Papers 993105503402676, International Labour Organization.
    7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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    Citations

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    Cited by:

    1. Mengistu Assefa Wendimu & Arne Henningsen & Tomasz Gerard Czekaj, 2017. "Incentives and moral hazard: plot level productivity of factory-operated and outgrower-operated sugarcane production in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 549-560, September.
    2. Nyanjong', Oyugi Johana & Lagat, Job, 2012. "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," MPRA Paper 40796, University Library of Munich, Germany.
    3. Nazir, Adnan & Jariko, Ghulam Ali & Junejo, Mumtaz Ali, 2013. "Factors Affecting Sugarcane Production in Pakistan," MPRA Paper 50359, University Library of Munich, Germany, revised 2013.

    More about this item

    Keywords

    Technical efficiency; Outgrowers; Sugarcane; Morogoro; Tanzania;

    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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