An Analysis of Technical Efficiency of Rice Farmers in Ahero Irrigation Scheme, Kenya

Abstract

Rice has continued to be an important cereal in Kenya in the recent years. Although it is third after maize and wheat in terms of consumption and production, its rate of consumption has increased over the years compared to maize and wheat. Rice production in Kenya does not meet demand, and the deficit has to be met with imports. Improving productivity would ensure increase in production, improved food security, reduced rice import bills and increased income among smallholder farmers. The current study, therefore, estimated technical efficiency of rice farmers in Ahero Irrigation Scheme, Kisumu County, Kenya. Stratified sampling and probability proportionate to size sampling was used to sample 220 rice farmers. A stochastic Cobb Douglas production function was used to estimate technical efficiency. The study further assessed the factors that affect technical efficiency of the rice farmers. The coefficients of fertilizer and labour were found to positively influence paddy productivity while that of chemical cost negatively influenced paddy productivity. The level of efficiency of rice farmers was found to be 0.82.  The study further found that gender, farming experience, income level and distance to market were found to be significant determinants of technical efficiency. The study therefore recommended policies that will ensure that the costs of productive inputs are affordable to farmers and improving households’ income through better prices for their outputs. Improvement in the transport infrastructure is also important in reducing inefficiencies in paddy production.

Key words: Rice, technical efficiency, stochastic Cobb Douglas production function, Kenya