An economic efficiency analysis approach for smallholder rice producers in Muramvya irrigated scheme, Burundi, pp. 117-155,
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Date
2022-01
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UB, Cahiers du CURDES
Abstract
This study assessed the extent to which rice producers from Maramvya irrigated scheme could raise their productivity and cost discounts if they efficiently use inputs in producing rice. To achieve this objective, we applied simple random sampling to select and collect cross-sectional data for 230 rice producers in the study area. Stochastic frontier analysis was used to evaluate how rice producers are technically, allocatively and economically efficient. The study applied Cobb-Douglas functional form for the stochastic frontier production and cost functions. In addition, a one-step maximum likelihood approach was used to derive parameters for stochastic frontier models. The study further assessed factors affecting efficiency levels among rice producers. Findings of this study revealed that rice yield elasticities with respect to land, labour, seed and fertilizer were 0.41, 0.45, -0.11 and 0.24 respectively, meaning that labour variable was more responsible in rice production increase while seed variable was in negative relationship with production levels. Globally, technical, allocative and economic efficiency scores averaged at 82%, 71 % and 58% respectively, implying that rice producers were technically efficient than they were allocatively and economically, with 42% room to expand productivity and cost discounts. Furthermore, the results pointed out that the major factor affecting efficiency levels positively in the study area was the level of education while age of the fanner, household size, access to credit and shortage of water significantly impact efficiency levels negatively. The study recommends introduction of new techniques rather than relying on expansion ofland and labour intensification. Focus should
be on input market and availability, but also in the long run, focus should be oriented on education and maintenance of canals for irrigation.
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NYAMWERU Jean-Claude, An economic efficiency analysis approach for smallholder rice producers in Muramvya irrigated scheme, Burundi, pp. 117-155, Cahiers du CURDES n° 19, Janvier 2022.