Technical Effeciency of Small Scale Banana Farming in Meru County, Kenya
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Date
2019
Authors
Eutycus, Kinyua Mbae
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Banana production is important due to the role it plays in the economy of Kenya. It provides
income to the farmers; generate job opportunities and boost food security in the country. Banana
is ranked as the fourth most valuable crop in the world after maize, wheat and paddy. In some
Eastern and central parts of Kenya banana plantations have replaced coffee plantation which was
formerly the main source of income to the farmers in the region. Nevertheless, despite the
important roles the banana production plays in the economy of Kenya, the overall banana output
has been falling in the last two decades notwithstanding the increase in area under banana
production. Moreover the full potential of fruits production in Kenya, among them banana
production remains unexploited despite the prospects for growth in demand owing to rise in
demand for fresh fruits and fruit products. In Kenya the area under banana production has been
increasing, however there has been no correspondence increase in banana output. Moreover, the
banana output per acre is lower compared to the probable output per acre. In the existence of
scarce production resources (especially land), the achievement of maximum technical efficiency
at farmer level would be key to achieving sufficiency in banana production and enhancing food
security which is among the Kenyan government’s big four agenda. The study addressed two
objective; the estimation of technical efficiency and the establishment of the determinants of the
technical efficiency of banana farming in Imenti South, Meru Kenya. The non-experimental
research design was used, utilizing cross-section data which was collected by use of
questionnaires which were filled by sample farmers. The stratified random sampling design was
used to pick a random sample of farmers to participate in the study. The quantitative data on
inputs and output for every sampled farmers was collected. The study used the maximum
likelihood to determine the stochastic frontier production function and a multiple regression
analysis to determine the determinants of technical efficiency. The technical efficiency was
measured in the five wards of Imenti South Sub-County which are the main cultivators of
bananas for commercial purposes. To realize the objectives of this study, data from 91 valid
questionnaires filled by small scale banana famers in the study area was used. Raw data was
systematically organized and stochastic frontier analysis was utilized to estimate the efficiency
levels. The Stochastic Frontier Analysis (SFA) results indicated that the average technical
efficiency for small scale banana farmers was approximately 69 percent, this means the farmers
on average were 31 percent technically inefficient. The regression results for efficiency model
showed the age of the farmer, the highest education level achieved by the farmer, access to water
for irrigation, access to credit had direct or positive effect on technical efficiency whereas access
to extension services, the farmer’s household size, gender of the farmer, land ownership by the
farmer and the farmer’s experience in banana farming had inverse or negative influence on
technical efficiency. The study concluded that the small-scale banana production falls short the
frontier output and therefore recommends availing of credit facilities at affordable rates to the
farmers, formation of farmers’ cooperatives and other self-help groups to enhance the
disbursement of credit and other services, the government should ensure cheaper fertilizer is
readily available to the farmers and offering frequent extension services to the farmers. These
would result to an improvement in efficient production of bananas
Description
A Research Project Submitted to the Department of Economic
Theory in Partial Fulfillment of the Requirements for the
Award of the Degree of Master of Economics (Policy & Management) of Kenyatta University.
Keywords
Technical Effeciency, Small Scale Banana Farming, Meru County, Kenya, Banana production, Food security, Banana plantations