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Economic efficiency of milk production among small-scale dairy farmers in Mukurweini, Nyeri County, kenya
... This could explain its highest contribution to the total production cost. However, the results are inconsistent with the findings of Maina et al. (2018) who observed that an increase in labor price would result in reduction in production cost. For small scale cricket farmers, it could therefore be more reasonable to use the family labour instead of hired labour to reduce the cost of production and maximize the returns. ...
... findings of Degefa et al. (2017) and Maina et al. (2018) who recorded a mean technical efficiency of 82.93 and 83.7% in maize and milk production, respectively. However, the mean TE in this study is higher compared to a mean of 73, 78.8, 62.3 and 59% realized in previous studies estimating technical efficiencies in both crop and animal productions as reported by Abate et al. (2019), Debebe et al. (2015), Kamau (2019), and Masuku et al. (2014), correspondingly. ...
... Therefore, in short run, it is possible to reduce the production cost in cricket production in the study area by embracing the current technology. These observations are in line with the findings of Maina et al. (2018) and Gebretsadik (2017) who reported a mean AE of 91.32 and 89.88% in dairy and sesame production, respectively. These results are inconsistent with the previous findings of 57.1, 67.17 and 72% reported by Debebe et al. (2015); Degefa et al. (2017) and Kamau (2019), respectively. ...
In the recent past, cricket production has attracted a myriad of interests in the Global Food Sector. However, low production, limited input resources and rearing systems constrain the utilization of crickets. Scanty information exists on sundry input resources for upscaling of cricket production and how such inputs can be efficiently managed. This study sought to determine economic efficiency of improvised cricket rearing system using a generalized additive stochastic frontier approach (GAM-SFA) to assess the efficiency in cricket production under the new technology. Twenty-day old Acheta domesticus and Gryllus bimaculatus were separately reared in improvised cage system comprising bamboo hideouts, scrap blankets, cut bamboo stems and the plywood-based cages. GAM-SFA was used to estimate efficiency scores. Results revealed that the production was efficient. Feed, labor and water were positive and significant at 5% suggesting their importance and positive influence on cricket output. Similarly, the cost of feed, labor, water and scrap blanket were positive and significant suggesting that increase in these costs of inputs would increase the total cost. The mean TE, AE and EE were 85, 92 and 79%, respectively implying that there still exist potential to increase output using present technology and costs of production. Assessing key determinants of economic efficiency in cricket production under the system is necessary.
... The change in the milking system coincides with a change in daily work activities, which requires more attention to check the dairy cows. Maina et al. (2018) found that the adoption of new technologies in the dairy sector requires considerable investment with high capital expenditures. Efficiency is a major problem in the economy of agricultural production and is measured by comparing the value obtained with that expected (Scown and Nicholas, 2020). ...
... However, farms that use milking robots are expected to be more profitable in the future, with increased labor and energy and water costs. Maina et al. (2018) found that the implementation of new technologies in the dairy sector requires significant investments with high capital expenditures. A major disadvantage of AMS is that it can milk a limited number of cows/day, and on large farms, such as some in the US, AMS is not profitable because it requires a large number of milking robots, which leads to a investment, while labor costs are lower in the US than in Europe (Matei A.C. et al., 2020). ...
This research is based on two studies that could help farm managers make financial decisions about equipping a dairy farm with an automatic milking system or conventional milking system or for choosing the most profitable hybrid maize used in agriculture for the production of maize grains. The data were collected following the accounting of agricultural companies. In the case of the analysis of the most efficient milking system, a t test was used to compare the farms according to the technology used and the statistical calculations were performed with IBM SPSS V.22 software. The second study was based on four maize hybrids, marketed by different organic production companies. Two variables were studied: the purchase price of the seed/ha and the productivity/ha for each of the 4 maize hybrids for which the relationship between the purchase price of the seed / ha and the productivity/ha of each seed hybrid was analyzed statistically corn under study. It was observed that the economic efficiency of farms is similar regardless of the milking system, for large farms the conventional milking system could be more profitable. In the case of maize hybrids, a direct connection is observed between the two variables because the higher the purchase price of the seed/ha, the higher the productivity per ha.
... The change in the milking system coincides with a change in daily work activities, which requires more attention to check the dairy cows. Maina et al. (2018) found that the adoption of new technologies in the dairy sector requires considerable investment with high capital expenditures. Efficiency is a major problem in the economy of agricultural production and is measured by comparing the value obtained with that expected (Scown and Nicholas, 2020). ...
... However, farms that use milking robots are expected to be more profitable in the future, with increased labor and energy and water costs. Maina et al. (2018) found that the implementation of new technologies in the dairy sector requires significant investments with high capital expenditures. A major disadvantage of AMS is that it can milk a limited number of cows/day, and on large farms, such as some in the US, AMS is not profitable because it requires a large number of milking robots, which leads to a investment, while labor costs are lower in the US than in Europe (Matei A.C. et al., 2020). ...
Informal or shadow economy and its multiple determinants have gained the attention of economic research, benefitting from a vast body of literature in the field. Even so, the nexus between the expansion of the informal economic sector and institutions, perceived as good practices, has been less explored. If the formal institutional component is easier to quantify in terms of impact determined on the informal economy, things are totally different when emphasizing how the informal institutions cause the auspicious circumstances as to further escalate shadow practices. Starting from such premises, our paper investigates the nexus between informal institutions, traditions, culture, values, attitudes, beliefs, or mentality that define the basic identity of any society and the predisposition of those societies towards shadow economy, applied to the EU -28. In other words, by using a mixed methodological approach based on the cultural dimensions provided by Geert Hofstede and a unique dataset of variables representative for the shadow economy and quality of informal institutions, we employ a cluster analysis and panel data analysis for the EU countries, including the United Kingdom. As expected, the results have fully validated the imperceptible contribution of unofficial institutions to the amplitude and gravity of informal economy, thus affecting the long-term prosperity of the country.
... Technical efficiency of cassava production in Bomi is projected to decrease by 3% if farmers continue along the current line of input use for another farming year. Similar to this negative result, Khan and Saeed (2011) and Maina (2018) found that older farmers were economically inefficient, while younger farmers increased their technical efficiency. However, Handwerker (1981) and Nginyangi (2011) found that older farmers, who have more experience in farming activities, increased both productivity and economic efficiency. ...
... Also, the challenges of free rides and opportunism posed by some group members during group labour frustrate many new members who intend to commit and old members who fully commit. This finding is in contrast to the expectation of the study, namely that group membership increases productivity, access to credit and support services (Maina 2018). However, it is in line with the findings of Gbigbi (2011) that cooperative membership has negative effects on economic efficiency. ...
To enrich agriculture reform and reap its benefits, policy makers need to localise policy issues within and across their domestic zones. Using a stochastic meta-frontier function, this study analysed the production efficiency of the cassava subsector of cassava growers from Bomi and Nimba counties in Liberia. The paper contributes to the domestication of agriculture policy issues within a country. The study found different scales of production returns for cassava growers in Bomi and Nimba counties. Farmer age, gender, household size and access to credit were key determinants of the technical gap ratio of the cassava subsector. The study recommends that relevant stakeholders (in a multi-stakeholder partnership) design a holistic approach of innovative finance (including microfinance, agriculture insurance and a grouped loan scheme) and social enterprise development that will encourage more women and young people to grow cassava efficiently for the higher productivity of the cassava subsector.
... Hence, an option to employ energetic labor is pertinent to realize higher output and revenue efficiency. The negative age effect is in line with similar studies of Khan, Saeed and Maina [28,29], but contrary to a study by Nginyangi [30] where age had a positive effect. The unsettling trend indicates that there is a relative ageproductivity peak as a farmer gets older [31]. ...
... The implication is with more experience in cultivating cassava, a farmer can rectify some of the defects in input-output engineering and find new ways to access information about markets [inputs and output]. This result aligns with results of Abdul-Kareem and Sahinli [34], Adeyemo, [35], and Ogunleye [36], that farming experience improves the efficiency and profitability of cassava production; but it differs with Maina's result [29] that membership in farming groups linked farmers to credits and support services to improve inputs and increase efficiency. ...
Cassava can be cultivated for food and income purposes. In Liberia, many of the agricultural households plant Cassava. Nimba is one of the counties with intensive cassava-cultivating farmers. The Northeastern County borders the Republics of Guinea and Cote D'Ivoire. Many of the Cassava farmers in Nimba cultivate cassava for sustenance purposes. Emerging crop trading opportunities trigger the concerns to assess the effectiveness of existing cassava technology to stimulate production for higher income and economic development. However, there is dearth information on the level of cassava production efficiency in Liberia. Therefore, the study sought to examine the economic efficiency of cassava production to farmers in Nimba using an output-oriented approach. A multi-stage sampling technique was employed to generate a sample for the study. From 216 cassava farmers, data related to on-farm attributes, socioeconomic and institutional factors were collected. The stochastic frontier models, using the Translog functional forms, of production and revenue, were used to determine the level of revenue efficiency and its determinants. The result showed that most of the cassava farmers are male (60%). Many of the farmers are either married, engaged or living together with a spouse (83%), with a mean household size of nine persons. Farmland is prevalently obtained by inheritance (95%), average farm size is 1.34 hectares, and most cassava farmers did not access agriculture credits (76%) and extension services (91%). The mean cassava output per hectare is 1,506.02 kg, which estimates an average revenue of L$23,551.16 (Liberian dollars). Empirical results showed that the revenue efficiency of cassava farmers varies from 0.1% to 73.5%; with the mean revenue efficiency of 12.9%. This indicates that on average, there is a vast potential of 87.1% to increase the economic efficiency of cassava farmers in Nimba by improving technical and allocative efficiencies. For the significant determinants of revenue efficiency, age and group membership had negative effects on revenue efficiency of cassava production; while farming experience, access to extension, formal education, and average wage rate has positive effects. The study recommends the setting-up and incentivizing of farmer field schools for cassava farmers to primarily share their farming experiences with others and to learn robust cultivation techniques of sustainable agriculture. Also, farm managers and farmers should consider a fix wage rate in labor contracts for all stages of cassava farming.
... Furthermore, it can also be defined as the ability of the farmer to produce at an optimal level of output using cost-minimising input ratios. Economic efficiency is the farmer's ability to maximise profit through resource use and costs of the output per unit; moreover, it is a product of technical and allocative efficiency (Adeniji, 1988;Haji, 2008;Asogwa et al., 2011;Mburu et al., 2014 andMaina et al., 2018). This means that to analyse the farmers' economic efficiency, it is necessary to determine their technical and allocative efficiency, and thus, economic efficiency is dependent on the level of technical and allocative efficiency. ...
This paper analysed the economic efficiency of small-scale tomato farmers in the Greater Letaba municipality of South Africa’s Limpopo Province. Primary data were collected from 68 tomato farmers based on structured questionnaires and using convenience and purposive sampling procedures. The Cobb-Douglas production function was used to analyse the level of economic efficiency. The study utilised the output approach, where the output achieved by the farmers is compared to the maximum output attainable using the given inputs. The empirical results reveal that mean technical, allocative, and economic efficiency levels are at 0.95, 0.41 and 0.39, respectively. The study also found that land (farm size), seedlings, labour, pesticides and water have a positively significant relationship with the production of tomatoes in the study area. Therefore, it is recommended that the Department of Agriculture, Land Reform and Rural Development provide farmers with enough extension services by employing more extension personnel. Government programmes such as the Comprehensive Agricultural Support Programme should be intensified – through the pillar of training and capacity building – to reach the small-scale farmers in the municipality, whereby farmers should be provided with training on the recommended minimum and maximum application of inputs like pesticides, fertilisers, seedlings and water in tomato production.
... Dairy farming has for a long time been a regular source of income to farmers and has overtime grown and expanded since independence (Mahida, Sendhil, Sirohi, Chandel, Ponnusamy & Sankhala, 2018). The sector contributes 17% to the GDP annually and is highly dominated by small scale farmers who account for the most supply of milk in the country especially in the central and rift valley regions (Maina, Gitau, & Van 2018). Financial sustainability is vital to the longterm survival and effectiveness of all types of organizations including cooperative societies. ...
Financial sustainability is key to the survival of an organization because it leads to long-term survival and effectiveness of the organization. The challenge however for all organizations is how to achieve their goals such as financial sustainability which solely depends on its ability to manage cash. The purpose of the study was to establish the effect of budgeting, cash accounting on the financial sustainability of dairy cooperatives. The study adopted the theory of budgeting. This study adopted a descriptive survey research design. The target population of the study was 260 employees from the accounting and finance department of 65 dairy cooperatives. The sample size was 160 respondents. Stratified and simple random sampling were employed. A pilot study was conducted in Nandi County to test for validity and reliability of the research instruments. Content validity was used as a validity test while reliability was tested using Cronbach's alpha coefficient. Descriptive statistics including mean, percentages and frequencies and inferential statistics were employed to analyze the data. In addition, inferential statistics that is correlation coefficient was used to make inferences of the population using data drawn from the population whereas descriptive statistics was used to summarize data from the population. The study findings found that budgeting had a positive and significant effect on financial sustainability of dairy cooperatives (β=0.170, p<0.05). The study concluded that budgeting, enhances financial sustainability of dairy cooperatives. It also concluded that with effective budgeting, one can predict the future expenses and costs and accordingly work towards the expected revenues hence may realize the required level of financial sustainability. This study recommended that budgeting should be practiced to ensure cash is allocated to all items and that all allocations as well as expenditures are done as per the budgets. The investors, government, employees and the researchers benefit from this research because it gives insight into cash management practices that can be used in achieving financial sustainability. It also forms a basis for policy makers in policy development on financial sustainability of dairy cooperatives .
Adoption of technologies and effective management practices in the pastoral beef systems are necessary for improved productivity and resilient agricultural systems. This study examined the factors influencing the adoption of Technology Innovations and Management Practices (TIMPs) among pastoral beef farmers in Isiolo and Kajiado counties. Employing a cross-sectional approach and utilizing the Seemingly Unrelated Regression (SURe) model, the research explores the intricate dynamics that shape farmers' decisions regarding three key TIMPs; planted fodder, feed supplementation, and fodder conservation. Using a systematic sampling technique, a sample size Original Research Article Kaburu et al.; Asian J. 37 of 619 pastoral farmers was adopted. This research seeks to uncover the underlying motivations and barriers, understanding the complex relationships between resource accessibility, socioeconomic considerations, and the role of extension services in facilitating technology adoption. The research underscores the importance of addressing specific barriers, including limited access to resources and socioeconomic constraints faced by these farmers. The evidence-based strategies derived from this research paves the way for scientifically informed interventions to propel the livestock sector in Kenya towards a sustainable future. The study's recommendations emphasize the need for targeted policies that prioritize market accessibility, technology awareness and information access, thus effectively supporting the adoption of TIMPs among pastoral beef farmers. Implementing these recommendations contributes to strengthening of resilience of the livestock sector and the advancement of sustainable agricultural practices in Kenya.
Adoption of technologies and effective management practices in the pastoral beef systems are necessary for improved productivity and resilient agricultural systems. This study examined the factors influencing the adoption of Technology Innovations and Management Practices (TIMPs) among pastoral beef farmers in Isiolo and Kajiado counties. Employing a cross-sectional approach and utilizing the Seemingly Unrelated Regression (SURe) model, the research explores the intricate dynamics that shape farmers' decisions regarding three key TIMPs; planted fodder, feed supplementation, and fodder conservation. Using a systematic sampling technique, a sample size of 619 pastoral farmers was adopted. This research seeks to uncover the underlying motivations and barriers, understanding the complex relationships between resource accessibility, socio-economic considerations, and the role of extension services in facilitating technology adoption. The research underscores the importance of addressing specific barriers, including limited access to resources and socio-economic constraints faced by these farmers. The evidence-based strategies derived from this research paves the way for scientifically informed interventions to propel the livestock sector in Kenya towards a sustainable future. The study's recommendations emphasize the need for targeted policies that prioritize market accessibility, technology awareness and information access, thus effectively supporting the adoption of TIMPs among pastoral beef farmers. Implementing these recommendations contributes to strengthening of resilience of the livestock sector and the advancement of sustainable agricultural practices in Kenya.
The aim of the present study is the efficiency assessment of 23 greenhouses of red-leaf lettuce based on the data envelopment analysis (DEA) method in Alborz province in Iran. The under-study greenhouses have applied the vertical hydroponic method for increasing of the area under cultivation of Red-leaf Lettuce which is a novel aspect of red-leaf lettuce farming. The optimizing of these production units can improve their performance. Therefore, this research focused on comparing and optimizing the performance of red-leaf lettuce greenhouses that use vertical hydroponic structure using DEA method. The assessment results indicated high efficiency and profitability of red-leaf lettuce farming so that the production cost of each bush is less than 6 cents while the sale price of each bush is nearly 40 cents. This present work provided an accurate performance using the input-based DEA model for evaluating the technical efficiency and scale efficiency of these commercial units. In this study, four main inputs (i.e., workforce, secondary capital for conversion of the ordinary greenhouse into vertical hydroponic structure, fertilizer, and other costs) were assumed as the model inputs and the net profit was considered the output of the model that should be increased. Considering the technical efficiency and scale efficiency, the return-to-scale ratio of the efficient greenhouses was constant, while most of the inefficient greenhouses had an increasing return-to-scale ratio. Analysis of the efficiencies showed that they are clearly small greenhouses that must increase their sizes and save the above-mentioned inputs in order to achieve higher efficiencies and change into efficient units. Accordingly, with an average reduction of 25.6% in the inputs, these units can maintain their previous output levels. As a result, the using vertical hydroponic structure in large red-leaf lettuce greenhouses, applying the suitable technology like greenhouse management systems for controlling of environment parameters and proper usage of the existing production factors for reduction of inputs and management of human resources lead to increase of their performance and efficiency. In this paper, the benchmark units, weights of the benchmark units, and the real and optimized input values will be presented for each studied units.
The purpose of the study was to analyse the economic efficiency of smallholder dairy farmers in Swaziland. Specifically, the study sought to describe the socioeconomic characteristics of dairy farmers in Swaziland. The smallholder farmers are classified into: smallholder farmers, medium-scale farmers, and large-scale dairy farmers. The specific objectives of the study were to: estimate the economic efficiency of smallholder dairy farmers in Swaziland; identify factors affecting the economic efficiency of smallholder dairy farmers; and determine the profitability of the smallholder dairy enterprise. This was a descriptive and quantitative survey and the target population was all smallholder dairy farmers registered with the Swaziland Dairy Board (N = 444). A purposive and random sampling techniques was used to select the respondents (n = 111). Three methods of data analysis were used, namely; descriptive statistics, econometric analysis (Stochastic Profit Frontier Function) and gross margin analysis. The mean level of Economic Efficiency (EE) for the famers was 79.8%. The farm's location, pasture size, soil Journal of Agricultural Studies 133 fertility, water availability, the farmer's years of experience in dairy farming, membership to dairy farmers' association and training on dairy farming are factors that influenced the level of EE for smallholder dairy farmers in Swaziland. The smallholder dairy farmers were economically efficient. The institutional factors, socioeconomic and farm characteristics do affect the level of EE among smallholder dairy farmers. The dairy farming enterprise is a profitable enterprise.
Aim:
Cows on smallholder dairy farms (SDF) in developing countries such as Kenya typically produce volumes of milk that are well below their genetic potential. An epidemiological study was conducted to determine reasons for this low milk production, including limited use of best management practices, such as suboptimal nutritional management.
Methods:
An observational cross-sectional study of 111 SDF was performed in Nyeri County, Kenya in June of 2013 determining the effect of cow factors, farmer demographics and farm management practices on the volume of milk sold per cow per year (kg milk sold/cow). In particular, the effect of feeding high protein fodder trees and other nutritional management practices were examined.
Results:
Approximatly 38% of farmers fed fodder trees, but such feeding was not associated with volume of milk sold per cow, likely due to the low number of fodder trees per farm. Volume of milk sold per cow was positively associated with feeding dairy meal during the month prior to calving, feeding purchased hay during the past year, deworming cows every 4 or more months (as opposed to more regularly), and having dairy farming as the main source of family income. Volume of milk sold per cow was negatively associated with a household size of >5 people and feeding Napier grass at >2 meters in height during the dry season. An interaction between gender of the principal farmer and feed shortages was noted; volume of milk sold per cow was lower when female farmers experienced feed shortages whereas milk sold per cow was unaffected when male farmers experienced feed shortages.
Conclusions:
These demographic and management risk factors should be considered by smallholder dairy farmers and their advisors when developing strategies to improve income from milk sales and animal-source food availability for the farming families.
This study examined trends in milk productivity and performance of the Kenyan smallholder dairy sector using a nationwide representative panel household data (2000-2010) and cross-sectional data collected in 2010 in the major milk producing areas. Descriptive statistics and gross margin analysis of the dairy enterprise were used to examine the performance of the dairy sector between zero and non-zero grazing systems, and across different milk sheds. The findings of the study showed a positive trend in milk productivity between 2000 and 2010. However, productivity was higher in higher potential areas and increased up the income quintiles, suggesting that dairy farming could be a preserve of the relatively better off households. Gross margin analysis showed that dairying is an economically viable enterprise in the short-run, with the non-zero grazing system having higher gross margins and therefore, a financial advantage. However, an example of zero grazing for farmers selling milk through the Githunguri farmers’
cooperative society indicated that zero grazing dairying can perform well under conditions of collective marketing, good linkage to markets in terms of processing, access to production information, credit as well as other benefits. Greater commercialization of the dairy sub-sector and an increase in smallholder incomes will come from improved technologies that will make the existing resources more productive, as well as policies and actions that will deal with the seasonal intra-year variations in production which include creation of a strategic milk reserve, investment in processing of long life dairy products and investment in infrastructure such as roads and electricity.
Key words: Milk, smallholder dairy enterprise, variable costs, gross margin
The dairy industry in Kenya is an important source of livelihood among the smallholder farmers who supply over 70% of the total milk. However, there is a growing concern on rising costs of milk production among farmers. The study assessed profit efficiency of smallholder dairying in the Rift Valley and Central Provinces of Kenya using stochastic frontier analysis for estimating farm level profit efficiency and identifying the specific determinants of efficiency. The results showed that the farmers are fairly profit efficient with an average of about 68%. Cost of fodder produced on farm significantly improved profit efficiency among farmers. However dairy profit efficiency can be enhanced if fodder production is embraced, as well as other supplemental feed technologies that are commensurate with local conditions. Institutional policy reforms on smallholder dairying will help protect the industry and its sustainability for smallholders.
The main objective of this study is to examine technical efficiency and its determinants in carp pond culture in Pakistan. A stochastic production frontier involving the model for technical inefficiency effects is applied separately to the samples of semi‐intensive/intensive and extensive carp producers. The mean technical efficiencies for semi‐intensive/intensive and extensive farms were 0.673 and 0.561, respectively. By operating at full technical efficiency the semi‐intensive/intensive farms could, on average, increase their production from 3.0 to 4.5 Mt/ha and the extensive farms from 2.6 to 4.6 Mt/ha. Much of these efficiency gains would come from the improvement in fish, water and feed monitoring and management. Besides improving technical efficiency, potential also exists for raising carp productivity through increased intensification and technological progress. However, the realization of these potentials will depend on continuous government support for adequate provision of inputs, market and infrastructure, technology transfer and development and extension and credit services to carp farmers.
The performance of three frontier steam electric generation estimators is compared in terms of the consideration given to new production technologies and their technical efficiency. The Cobb-Douglas, constant elasticity of substitution, and translog production functions are examined, using the Aigner-Chu linear programming, the sophisticated Aigner-Lovell-Schmidt stochastic frontier, and the direct method of adjusted ordinary least squares frontier estimators. The use of Cobb-Douglas specification is judged to have narrowed the perceived difference between competing estimators. The choice of frontier estimator is concluded to have a greater effect on the plant efficiency than functional form. 19 references. (DCK)