| dc.description.abstract | We analyze the efficiency of wheat farmers toward the ever-increasing demand
for wheat in Tanzania. Translog production and cost functions were
utilized in the stochastic frontier analysis to examine technical, allocative, and
economic efficiencies (TE, AE, and EE) of wheat farmers in Northern Tanzania.
Propensity score matching through caliper radius and nearest neighbor
methods were utilized to analyze the impact of value chain participation on
smallholder farm efficiency levels. Analysis revealed that the average TE, AE,
and EE scores for farmers’ value chain participation were 79%, 80%, and 64%,
respectively, in the study area, implying that wheat farmers could still improve
level of TE, AE, and EE by 21%, 20%, and 36%, respectively. Caliper radius
matching revealed that the net effects of farmers’ participation in vertical
coordination on TE, AE, and EE were 6.8%, 5.7%, and 8.7%, respectively,
while the net effects of farmers’ horizontal coordination participation were
6.3%, 9.5%, and 11.6%, respectively. This indicates that farmer’s participation
in value chain (vertical and horizontal coordination) would positively impact
their level of wheat farm efficiencies. Based on the results, we recommend the
expansion of wheat plots and use of modern farming technologies to increase
wheat production in Tanzania. To further improve farm unit efficiency, we
recommend additional formal education for future farmers, more on-farm
extension training, and participation in the value chain through contracts and
farmers’ associations. | en_US |
