Analysis of Technical Efficiency of Small Scale Rice Farmers in the West Region of Cameroon: A Stochastic Frontier Approach

Abstract

This study was undertaken to analyze technical efficiency of small scale rice farmers in the West Region of Cameroon. The specific objectives were to determine input-output relationships in small scale rice production; identify determinants of technical inefficiency of small scale rice farmers and estimate technical efficiency of small scale rice farmers. A multistage stratified random sampling technique was used in selecting the respondents. A total of 192 small scale rice farmers were purposively selected from four (4) out of eight divisions. Data were collected using structured questionnaires and interview schedule, administered on the respondents were analyzed using descriptive statistics and stochastic frontier production functions. The estimated production function for farm size and labour positively influenced small scale rice output at 5 percent level of probability implying that increases in farm size and labour by one unit lead to increase of rice output by the value of their estimated coefficient.  In contrast, fertilizer use negatively influenced small scale rice output at 5 percent level of probability implying that increases in fertilizer use by one unit lead to decreases in rice output by the value of the estimated coefficient. Extension contacts was found to be positively and significantly related to technical efficiency at 5 percent level of probability implying that technical efficiency in small scale rice production could be increased through better extension contact. In contrast, access to credit was found to be negatively related to technical efficiency at 5 percent level of probability implying that accessibility to credit decreases technical efficiency in small scale rice production in the study area. The average technical efficiency in small scale rice production was 82 percent implying that small scale farmers’ technical efficiency could be increased by 18 percent if the available resources are efficiently utilized. The study recommends that to increase farmers’ technical efficiency level, training aimed at fertilizer application and credit use by small scale rice farmers should be frequently organized in the study area.

Keywords: Technical Efficiency, Small Scale producers, Cameroon