Productivity and Resource Use Efficiency in Tomato and Watermelon Farms: Evidence from Ghana

Abstract

This study examines productivity and resource use efficiency in tomato and watermelon farms in the Dangme East District of Ghana. Cross-sectional data of 200 farmers (100 tomato farmers and 100 watermelon farmers) were obtained from a field survey using structured questionnaires. The empirical results of this study show that, the value of output of watermelon is higher than that of tomato. The difference could be attributed to differences in output prices as well as labour and material input costs incurred in the production of each of these crops. Since prices of inputs are more or less stable over the season, output price difference could be said to be the main cause of this difference. For instance, it costs GH ¢704.59 to produce a hectare of tomato whereas the average cost of producing a hectare of watermelon is GH¢509.03. Conversely, a hectare of tomato yields GH¢480.37 whereas a hectare of watermelon yields GH¢1738.68. Analysis of the factors affecting the value of output of tomato and watermelon shows that, land, labour and experience exert significant influence on the value of output of tomato; whereas land, non-agricultural activity and training significantly influence the level of output of watermelon in the study area. Marginal value products computed for land and labour for each crop were found to be higher than the market prices of  these factors indicating that land and labour are inefficiently used in both tomato and watermelon production though labour did not significantly influence watermelon production. Also, neither did the amount of fertilizer used in tomato production nor the amount of capital used in watermelon production exert significant influence on their value of outputs; these inputs were found to be underutilized in each case. These results have implications for Agricultural policy in Ghana.

Key Words: Productivity, Resource Use Efficiency, Tomato, Watermelon, Farms, Ghana