Economic efficiency of mango production in the Yilo Krobo municipality in the eastern region of Ghana

Abstract

Mango has been the major cash crop grown by farmers in the Yilo Krobo Municipality. The productivity of this crop has been persistently low despite various private and public sector interventions. Studies have suggested that one key factor of productivity growth is efficiency in resource and technology use. This study estimated the economic efficiency of mango production to determine the scope for additional increase in mango production. A multistage sampling technique was used to randomly select and collect primary data from sixty two registered mango farmers. Descriptive statistics were used to describe the state of mango production. Stochastic production frontier analysis was used to estimate the economic efficiencies and their determinants among mango farmers. Kendall coefficient of concordance was used to measure the degree of agreement among farmers concerning the constraints associated with mango production. The results of the analysis indicated that mango farmers were economically inefficient, and that the presence of technical and allocative inefficiencies had effects on mango production. In addition, the results revealed that farm-specific and farmer-specific characteristics were significant predictors of the economic inefficiency levels exhibited by mango farmers. The Kendall W statistic also revealed a strong degree of agreement among mango farmers concerning the constraints associated with mango production. Based on these findings, policy makers should focus on promoting efficient use of existing technology and resources in mango production. For instance, the Ministry of Food and Agriculture should develop an integrated and holistic extension strategy to provide training for farmers on resource use efficiency, information, and access to inputs and services.