Estimation of Technical Efficiency and It's Determinants in the Tea Small Holding Sector in the Mid Country Wet Zone of Sri Lanka

Basnayake, B.M.J.K.; Gunaratne, L. H. P.

doi:10.4038/sjae.v4i0.3488

Cited by 49 publications

(46 citation statements)

References 6 publications

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“…Farmers with much experience in tea farming can produce more output with given inputs as compared to those with less experience. This result is consistent with the finding of Basnayake et al (2000).…”

Section: Factors Affecting Resource Use Efficiencysupporting

confidence: 83%

“…Since tea production is mono crop farming and frequently affected by weather conditions, diseases, and other exogenous random factors (noise effects), stochastic frontier analysis was applied for this study to distinguish noise effects and inefficiency effects in the model. In recent years, there have been some studies on tea production efficiency estimation in developing countries (Basnayake & Gunaratne, 2000;Baten et al, 2010;Haridas et al, 2012), particularly in Vietnam such as Saigenji and Zeller (2009). By using stochastic frontier analysis, all these studies showed clearly output-oriented technical efficiency of tea production which determined tea farms' possibility to maximize output levels with given set of inputs, but their limitation were not to estimate the input-oriented technical efficiency.…”

Section: Introductionmentioning

confidence: 99%

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Resource Use Efficiency of Tea Production in Vietnam: Using Translog SFA Model

Hong¹,

Yabe²

2015

JAS

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As one of the most important economic activities to small households of Vietnam, tea production is hindered by low productivity, rising of production costs, and bad agriculture practices. To sustain tea production, the near-term strategy is to improve the efficiency of resource utilization. To our knowledge, this article is the first study to evaluate the tea production's resource use efficiency and to identify the factors affecting it in Vietnam. The data was collected from 243 randomly selected tea farmers in the Northern mountainous region of Vietnam.The study first applied a translog stochastic production frontier model and technical efficiency (TE) technique to estimate resources use efficiency, and then used a Tobit model to identify the factors affecting these efficiencies among tea farms. Based on the mean sum of output elasticity with respect to inputs (0.323), we found that increasing the utilization of resources in the study site was inappropriate. The study also revealed that the average input-oriented TE of tea farms was lower than that of output-oriented TE, 82.21% versus 92.29%, suggesting that the farmers had more ability to reduce resource use than to increase current output level. The results showed that the tea farmers could use resources more efficiently by reducing 17.79% of the current application level without compromising the output. The study also indicates that concerted efforts from government to increase farmers' accessing extension service, widening soil and water conservation practice, and spreading farmers' awareness on water scarcity is the key to improve farmers' resource use efficiency.

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Section: Factors Affecting Resource Use Efficiencysupporting

confidence: 83%

Section: Introductionmentioning

confidence: 99%

Resource Use Efficiency of Tea Production in Vietnam: Using Translog SFA Model

Hong¹,

Yabe²

2015

JAS

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“…The computed mean technical effi ciency of this survey was lower compared to the technical effi ciency of 83.1% observed by Basnayake and Gunaratne (2002) in the Tea Smallholding…”

Section: Determining Technical Effi Ciencycontrasting

confidence: 70%

Technical Efficiency of Smallholder Tea Production in South-Eastern Malawi: A Stochastic Frontier Approach

2017

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“…Other studies on productivity of crops in Sri Lanka such as for rice (Shantha et. al., 2012), tea (Basnayake and Gunaratne, 2002) and Potato (Amarasinghe and Weerahewa, 2001) has revealed that land is a significant factor of production. In this regard, consolidation of fragmented smallholder land holdings through collective farming or group farming would be a feasible option for consideration to reap the benefits of economies of scales in maize production.…”

Section: Discussionmentioning

confidence: 99%