Technical resource use efficiency of small-scale maize farmers in the Etunda irrigation project, Omusati region in Namibia.
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Date
2023-09
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University of Science and Technology
Abstract
Namibia has identified agriculture, among other sectors, as a strategic development area to achieve its vision of economic growth through industrialisation. Maize production is a vital contributor to Namibia's socio-economic development, with an average per capita consumption of 44kg per year, higher than other cereals such as pearl millet. This study aims to investigate the technical resource utilisation efficiency of small-scale maize farmers at the Etunda Green Scheme Irrigation project in the Omusati Region of Namibia.
A total of 47 small-scale farmers at the Etunda Irrigation Scheme were surveyed using a census sampling method and a structured questionnaire to capture data. A Cobb-Douglas function for production under the Stochastic Frontier Model was used to estimate the technical efficiency of producers, whereas an enterprise budget was used to evaluate their profitability. The average technical efficiency of this study is 90%, which means the farmers are using the available resources efficiently. The study reveals that producers’ technical efficiency is influenced by tractor power, seeds and fertilisers. Tractor power, seeds and fertiliser elasticities are 0.761, 0.087 and 0.442, respectively. Farm specific socio-economic factors were modelled to estimate farmer’s technical inefficiency. The results reveal that gender and extension services had a significant and negative impact on the technical efficiency of producers. The results also show that the majority of producers (81%) operated at a loss, with fertiliser accounting for 51% of total production costs.
The study recommends that policymakers incentivise local fertiliser production through availing of funds to citizens and non-citizens who wish to do fertiliser production business or remove taxes on imported fertilisers which will significantly drop production costs. There is a need to provide farmers with comprehensive technical training and robust extension services, ensuring they utilise technical resources to their fullest potential, thereby maximising profitability. It is highly recommended that farmers have intensified access to technical training and effective extension services to enhance their efficient use of technical resources to enhance profitability.
Description
Thesis submitted in partial fulfilment of the requirements for the degree of
Master of Agribusiness Management at the Namibia University of Science and Technology.
Keywords
Keywords: Technical Efficiency, Stochastic Frontier, Enterprise Budget
Citation
Technical resource use efficiency of small-scale maize farmers in the Etunda irrigation project, Omusati region in Namibia.