Analysis of economic efficiency among smallholder sorghum producers in Kenya
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Date
2020
Authors
Mwangi, Backson
Macharia, Ibrahim
Bett, Eric
Journal Title
Journal ISSN
Volume Title
Publisher
Academic Journals
Abstract
This study used Cobb-Douglas Stochastic Profit Frontier to analyze economic efficiency of sorghum
farmers in Tharaka Nithi County, Kenya. Using a multi-stage stratified sample of 259 farmers, results
depicted a wide range of profit efficiency between the best (0.96) and the worst (0.12) farmer with a
mean of 0.17. The actual and potential profit was USD 164.88 ha-1 and USD 969.87 ha-1 respectively. This
indicates that, sampled farmers incurred profit-loss of approximately USD 804.99 ha-1. Family labour
and fixed capital base were the major contributing factors to sorghum profitability. Drivers of profit
efficiency pointed out that, farmers who had more experience in sorghum farming, accessed
agricultural credit, attended trainings, lived closer to the market and agro-dealers were likely to be more
efficient. To increase profit efficiency, this study therefore advocates for policy strategies targeting
these factors. Further, policy move targeting increase in uptake and correct application of fertilizer and
other inputs should be reinforced.
Description
A research article published in Journal of Development and Agricultural
Economics
Keywords
Improved sorghum varieties, economic efficiency, Cobb-Douglas stochastic profit frontier, Kenya
Citation
Mwangi, B., Macharia, I., & Bett, E. (2020). Analysis of economic efficiency among smallholder sorghum producers in Kenya. Journal of Development and Agricultural Economics, 12(2), 95-103.