TECHNICAL EFFICIENCY ANALYSIS OF ORGANIC MANGO OUTGROWER FARM MANAGEMENT TYPES: THE CASE OF INTEGRATED TAMALE FRUIT COMPANY OUT-GROWERS IN NORTHERN REGION

Abstract

To improve farmers’ income from production, farm inputs have to be applied efficiently. This study estimated and assessed difference in technical of two farm management types (group management and family management). Data was obtained from a random sample of 204 out-growers through the use of structured questionnaire. A transcendental logarithmic (translog) stochastic production frontier was employed using the maximum likelihood estimation method, from which farm-specific technical efficiency was calculated. The result shows that farmers under family farm management are about 42%, more technically efficient than those under group farm management. The group managed farms are less technically efficient due to lack of commitment to managing farms and too large groups for leaders to effectively control. Training of out-growers, aimed at addressing specific needs are required to improve technical efficiency, while frequent farm demonstrations, breaking large groups into smaller ones and strategic shift from group to family plantations are some ways to improving technical efficiency.