Profitability and technical efficiency analysis of pigeon pea production in Machakos County, Kenya
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Date
2023
Authors
Ngiri, Stephanina Makena
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Pigeon pea is a drought-tolerant crop mainly grown by small-scale growers in arid and semi-arid regions mostly for income generation and enhancing food security. Pigeon pea is a very essential crop, particularly in destinations accustomed to drought. Nevertheless, its production remains low. As is with other small holder farmers, pigeon pea producers are often faced with resource-use inefficiency and high costs of inputs in production implying that the proper and efficient allocation of resources is vital to guarantee pigeon pea farmers attainment of additional benefits from their input. Hence, this study aimed at estimating the profit and technical efficiency, assessing profitability and examining factors influencing profit and technical efficiency of pigeon pea production in Machakos County, Kenya. The sample size was 346 respondents targeting pigeon pea farming households’ population. This study relied on primary data collected using structured questionnaire administered to the farmers. Machakos County was purposively selected for the study. The inefficiency effect model and a Cobb-Douglas stochastic frontier production analysis method were utilized to estimate profit and technical efficiency and determine the factors that determine pigeon pea farmers' efficiency. Furthermore, thorough evaluation of profit level was made possible by gross margin analysis. According to the pigeon pea gross margin analysis, pigeon pea farmers in Machakos County had a gross margin of Kshs 3470.60 per acre. The sample pigeon pea farms had profit efficiency levels ranging from 0.11 to 0.9, while their technical efficiency levels ranged from 0.09 to 0.86, according to the findings. The estimated mean level of technical efficiency of the sample farmers, which was approximately 59%, demonstrates the likelihood of increasing the quantity of pigeon pea yield by 41%. Farmers can only achieve this by effectively utilizing the resources at their disposal. On the other hand, mean profit efficiency was 44% implying that there exists an opportunity to increase profit levels by 56% when farmers’ allocative and technical efficiencies are improved. Land size, seeds and labour significantly influenced profits whereas farm size, quantity of seeds, manure and labor significantly determined pigeon pea output. The inefficiency parameter and the stochastic production frontier model were used to calculate the factors that influence efficiency where; farming experience, education, off-farm income, and access to credit all had a positive influence on technical efficiency. Contrarily, the technical efficiency of pigeon pea production was negatively influenced by sex, age, the occupation of the household head, and household size. Profit efficiency was positively influenced by education, proximity to the market, and marketing information, whereas age, occupation, and group membership had a significant and negative impact. In order to assist farmers in making sound decisions regarding the marketing of their produce, strategies that make use of current market information are recommended. It was also recommended to devise strategies for making certified planting seeds available, not only to boost productivity but also production efficiency. Lastly, effective extension services and programs should be developed by the appropriate organizations to improve farmers' capacity to increase pigeon pea productivity.
Description
A Research Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Science (Agricultural Economics) in the School of Agriculture and Environmental Sciences of Kenyatta University. July 2023
Keywords
Profitability, technical efficiency, pigeon pea, production, Machakos County, Kenya