IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/89683.html

Technical Efficiency for Tea Smallholder Farmers under UTZ Certification System in Sri Lanka: A Stochastic Frontier Approach

Author

Listed:
  • Suranjan Priyanath, Hunuwala Malawarage
  • Premaratne, S.P.
  • Yoosuf, Amina
  • Maurice, D.

Abstract

The study aimed to identify the determinants of the technical efficiency of Smallholder Tea Farmers (STFs) under UTZ certification system in Sri Lanka by employing stochastic production frontier using a sample survey of 75 STFs supported by the UTZ programme conducted between January and March in 2016. The results showed that a small number of STFs (11.8 percent) were over 90 percent efficient and the level of efficiency was found to be negatively related to coefficients of UTZ certified STFs and positively related to number of years with the same plants. The results further showed the labor and fertilizer were the significant factors that determine the tea production of STFs.

Suggested Citation

  • Suranjan Priyanath, Hunuwala Malawarage & Premaratne, S.P. & Yoosuf, Amina & Maurice, D., 2018. "Technical Efficiency for Tea Smallholder Farmers under UTZ Certification System in Sri Lanka: A Stochastic Frontier Approach," MPRA Paper 89683, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89683
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/89683/2/MPRA_paper_89683.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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, pages 1-15.
    2. 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.
    3. N.G. Malinga & M.B. Masuku & M.O. Raufu, 2015. "Comparative Analysis of Technical Efficiencies of Smallholder Vegetable Farmers with and Without Credit Access in Swazil and the Case of the Hhohho Region," International Journal of Sustainable Agricultural Research, Conscientia Beam, vol. 2(4), pages 133-145.
    4. 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.
    5. 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.
    6. N.G Malinga & M.B Masuku & M.O Raufu, 2015. "Comparative Analysis of Technical Efficiencies of Smallholder Vegetable Farmers with and Without Credit Access in Swazil and the Case of the Hhohho Region," International Journal of Sustainable Agricultural Research, Conscientia Beam, vol. 2(4), pages 133-145.
    7. K. Kalirajan, 1981. "The Economic Efficiency of Farmers Growing High-Yielding, Irrigated Rice in India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(3), pages 566-570.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ranjan, K.R.H.M. & Edirisinghe, J.C. & Herath, H.M.L.K. & Jayasinghe-Mudalige, U.K. & Kuruppu, I.V. & Jayathilake, H.A.C.K. & Wijeratne, M.A. & Wijesuriya, W. & Balasooriya, D.C. & Somarathna, A.D.K.S, . "Total Factor Productivity, Efficiency, and Technical Change in Large Scale Tea Estates in Sri Lanka," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 22(01).
    2. Nguyen Hung Anh & Wolfgang Bokelmann & Do Thi Nga & Nguyen Van Minh, 2019. "Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam," Economies, MDPI, vol. 7(3), pages 1-25, July.
    3. Rangalal Mohapatra & Bondona Lama, 2024. "An analysis of the determinants of productivity of Assam tea growers," SN Business & Economics, Springer, vol. 4(12), pages 1-33, December.

    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. 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).
    3. repec:aer:wpaper:178 is not listed on IDEAS
    4. Thi Lam Bui & Huu Cuong Tran & Hossein Azadi & Philippe Lebailly, 2018. "Improving the Technical Efficiency of Sengcu Rice Producers through Better Financial Management and Sustainable Farming Practices in Mountainous Areas of Vietnam," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    5. Alexander Kalb, 2014. "What Determines Local Governments' Cost-efficiency? The Case of Road Maintenance," Regional Studies, Taylor & Francis Journals, vol. 48(9), pages 1483-1498, September.
    6. Rouf, Abdur, "undated". "Conventional vs Natural Flood Control and Drainage Managements in a Tidal Coastal Zone: An Evaluation from a Productive Efficiency Perspective," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 256023, Agricultural Economics Society.
    7. Cuccia, Tiziana & Guccio, Calogero & Rizzo, Ilde, 2016. "The effects of UNESCO World Heritage List inscription on tourism destinations performance in Italian regions," Economic Modelling, Elsevier, vol. 53(C), pages 494-508.
    8. Okoth, Ouko Kevin, 2018. "Technical Efficiency Of Sugarcane Monoculture And Sugarcane- Soybean Intergration Among Smallholder Farmers In Awendo Sub-County, Kenya," Research Theses 276446, Collaborative Masters Program in Agricultural and Applied Economics.
    9. Asefa, Shumet, 2011. "Analysis of technical efficiency of crop producing smallholder farmers in Tigray,Ethiopia," MPRA Paper 40461, University Library of Munich, Germany, revised 19 Sep 2012.
    10. Dongwei Su & Xingxing He, 2012. "Ownership structure, corporate governance and productive efficiency in China," Journal of Productivity Analysis, Springer, vol. 38(3), pages 303-318, December.
    11. 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.
    12. Wu, Yanrui, 1995. "The productive efficiency of Chinese iron and steel firms A stochastic frontier analysis," Resources Policy, Elsevier, vol. 21(3), pages 215-222, September.
    13. Dhehibi, Boubaker & Lachaal, Lassaad & Elloumi, Mohamed & Messaoud, Emna B., 2007. "Measurement and Sources of Technical Inefficiency in the Tunisian Citrus Growing Sector," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9391, European Association of Agricultural Economists.
    14. Noel Uri, 2003. "The Effect of Incentive Regulation in Telecommunications in the United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 37(2), pages 169-191, May.
    15. Manish Roy & Ritwik Mazumder, 2016. "Technical Efficiency of Fish Catch in Traditional Fishing: A Study in Southern Assam," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 5(1), pages 55-68.
    16. Martin Paul Jr. Tabe-Ojong & Ernest L. Molua, 2017. "Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 7(4), pages 27-35, December.
    17. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    18. Vaneet Bhatia & Sankarshan Basu & Subrata Kumar Mitra & Pradyumna Dash, 2018. "A review of bank efficiency and productivity," OPSEARCH, Springer;Operational Research Society of India, vol. 55(3), pages 557-600, November.
    19. 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.
    20. Subal Kumbhakar & Efthymios Tsionas, 2008. "Scale and efficiency measurement using a semiparametric stochastic frontier model: evidence from the U.S. commercial banks," Empirical Economics, Springer, vol. 34(3), pages 585-602, June.
    21. Christopher F. Parmeter & Hung-Jen Wang & Subal C. Kumbhakar, 2017. "Nonparametric estimation of the determinants of inefficiency," Journal of Productivity Analysis, Springer, vol. 47(3), pages 205-221, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

    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:89683. 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.