IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/69679.html

Technical efficiency in Ghana's cocoa production: evidence from Twifo Hemang Lower Denkyira Area

Author

Listed:
  • Obeng, Isaac Antwarko
  • Adu, Kofi Osei

Abstract

This study examined the production efficiency of cocoa farmers in Twifo Hemang Lower Denkyira area composed of two districts namely Twifo Ati Mokwa district and Hemang Lower Denkyira districts in the central region of Ghana using farm level data. Results presented were based on data collected from multi-stage sampling of 326 cocoa farmers in twenty (20) communities using standardized structured questionnaires. The productivity and technical efficiency in cocoa production were estimated through stochastic frontier production function analysis using the Frontier 4.1 software. Empirical results showed that cocoa farms in the study area exhibited increasing returns-to-scale (RTS=1.2109), indicating reducing average costs (AC) of production. This implies that cocoa farmers were operating in the irrational zone of production (stage I), an indication of inefficiency in production. The technical efficiency indexes of farmers varied from 0.116 (11.6%) to 0.9998 (99.98%), with mean of 0.54 (54%). The main factors that significantly affected technical efficiency in cocoa production were found to be estimated number of hybrid plant, level of education and age of tree. Among others, the study recommended that the Cocoa Rehabilitation Unit of the Cocobod should help farmers to rejuvenate and or re-plant the aged cocoa farms with hybrid varieties improve resource use efficiency in cocoa production in cocoa production.

Suggested Citation

  • Obeng, Isaac Antwarko & Adu, Kofi Osei, 2016. "Technical efficiency in Ghana's cocoa production: evidence from Twifo Hemang Lower Denkyira Area," MPRA Paper 69679, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:69679
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/69679/1/MPRA_paper_69679.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Som P. Pudasaini, 1983. "The Effects of Education in Agriculture: Evidence from Nepal," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(3), pages 509-515.
    2. Guy Nkamleu, 2004. "Productivity Growth, Technical Progress and Efficiency Change in African Agriculture," African Development Review, African Development Bank, vol. 16(1), pages 203-222.
    3. Lau, Lawrence J & Yotopoulos, Pan A, 1971. "A Test for Relative Efficiency and Application to Indian Agriculture," American Economic Review, American Economic Association, vol. 61(1), pages 94-109, March.
    4. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    5. Sekhon, M.K. & Mahal, Amrit Kaur & Kaur, Manjeet & Sidhu, M.S., 2010. "Technical Efficiency in Crop Production: A Region-wise Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(2), July.
    6. Guy Nkamleu & Joachim Nyemeck & Jim Gockowsk, 2010. "Working Paper 104 - Technology Gap and Efficiency in Cocoa Production in West and Central Africa: Implications for Cocoa Sector Development," Working Paper Series 241, African Development Bank.
    7. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-286, July.
    8. 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.
    9. Joachim Nyemeck BINAM & Jim GOCKOWSKI & Guy Blaise NKAMLEU, 2008. "Technical Efficiency And Productivity Potential Of Cocoa Farmers In West African Countries," The Developing Economies, Institute of Developing Economies, vol. 46(3), pages 242-263, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    2. Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1631-1641.
    3. Victor Moutinho & Mara Madaleno, 2021. "Assessing Eco-Efficiency in Asian and African Countries Using Stochastic Frontier Analysis," Energies, MDPI, vol. 14(4), pages 1-17, February.
    4. William Griffiths & Xiaohui Zhang & Xueyan Zhao, 2010. "A Stochastic Frontier Model for Discrete Ordinal Outcomes: A Health Production Function," Department of Economics - Working Papers Series 1092, The University of Melbourne.
    5. Graziano Abrate & Federico Boffa & Fabrizio Erbetta & Davide Vannoni, 2018. "Voters’ Information, Corruption, and the Efficiency of Local Public Services," Sustainability, MDPI, vol. 10(12), pages 1-22, December.
    6. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Technical efficiency of alternative farming systems: the case of Greek organic and conventional olive-growing farms," Food Policy, Elsevier, vol. 26(6), pages 549-569, December.
    7. Edward Ebo ONUMAH & Bernhard BRÜMMER & Gabriele HÖRSTGEN-SCHWARK, 2010. "Productivity of the hired and family labour and determinants of technical inefficiency in Ghana's fish farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(2), pages 79-88.
    8. Mulwa, Richard & Kabubo-Mariara, Jane, 2017. "Productive Efficiency and Its Determinants in a Changing Climate: A Monotonic Translog Stochastic Frontier Analysis," EfD Discussion Paper 17-6, Environment for Development, University of Gothenburg.
    9. Bozoglu, Mehmet & Ceyhan, Vedat, 2007. "Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey," Agricultural Systems, Elsevier, vol. 94(3), pages 649-656, June.
    10. Olli-Pekka Kuusela & Maria S. Bowman & Gregory S. Amacher & Richard B. Howarth & Nadine T. Laporte, 2020. "Does infrastructure and resource access matter for technical efficiency? An empirical analysis of fishing and fuelwood collection in Mozambique," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(3), pages 1811-1837, March.
    11. Mastromarco Camilla & Laura Serlenga & Yongcheol Shin, 2013. "Globalisation and technological convergence in the EU," Journal of Productivity Analysis, Springer, vol. 40(1), pages 15-29, August.
    12. Gabriela Pérez Quesada, 2017. "Technical efficiency of dairy farms in Uruguay: a stochastic production frontier analysis," Documentos de Trabajo (working papers) 0517, Department of Economics - dECON.
    13. Hung-jen Wang & Peter Schmidt, 2002. "One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels," Journal of Productivity Analysis, Springer, vol. 18(2), pages 129-144, September.
    14. Gralka, Sabine, 2018. "Stochastic frontier analysis in higher education: A systematic review," CEPIE Working Papers 05/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    15. Alejandro Esteller-Moré, 2005. "Is There a Connection Between the Tax Administration and the Political Power?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(5), pages 639-663, September.
    16. Paul, Satya & Shankar, Sriram, 2018. "Modelling Efficiency Effects in a True Fixed Effects Stochastic Frontier," MPRA Paper 87437, University Library of Munich, Germany.
    17. Tim Coelli & Sergio Perelman & Elliot Romano, 1999. "Accounting for Environmental Influences in Stochastic Frontier Models: With Application to International Airlines," Journal of Productivity Analysis, Springer, vol. 11(3), pages 251-273, June.
    18. Young Hoon Lee, 2009. "Frontier Models and their Application to the Sports Industry," Working Papers 0903, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy), revised 2009.
    19. Maity, S., . "Reform Raises Efficiency of Tea Estates in India," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(2).
    20. Tom Kompas & Tuong Nhu Che, 2004. "Production and Technical Efficiency on Australian Dairy Farms," International and Development Economics Working Papers idec04-1, International and Development Economics.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:69679. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.