AN ASSESSMENT OF ALLOCATIVE EFFICIENCY OF ORGANIC MANGO FARMS IN NORTHERN GHANA
DOI:
https://doi.org/10.14738/abr.32.991Abstract
Abstract
Despite numerous government interventions, increasing agricultural productivity to ensure food security still remains a challenge facing Ghana’s agriculture, which is largely conventional, but has a growing organic production and niche market. Since 2001, the Integrated Tamale Fruit Company has been assisting Northern Ghana’s hitherto subsistence farmers to cultivate organic mango through an out-grower scheme aimed at boosting the productivity and market access, and reducing the production cost of farms in the scheme. Anecdotally, the livelihood of organic mango farmers does not seem to have improved, despite significant increases in the performance of participating farms. This study provides empirical evidence on the actual economic performance of organic mango farmers in Northern Ghana and establishes the implications of this for livelihood and empowerment in organic mango farm household by estimating input-use efficiency. By fitting a tranlog average response production function to data from 204 organic mango farms, we obtained input-use efficiency ratios of 1.83 and 1.91 for weeding expenditure incurred by group and family out-growers respectively, and ratios of 0.24 and 0.11 for organic pesticides. The results suggest that to improve their livelihood, farmers need to increase their investment in weeding and reduce that of pesticides use.
References
REFERENCES
Al-hassan Seidu (2012). “Technical Efficiency in Smallholder Paddy Farms in Ghana: an Analysis Based on Different Farming Systems and Gender”. Journal of Economics and Sustainable Development. 3(5): 91-98.
Barnett (2004). “Problems” Quarterly Journal of Australian Economis 7(1): 95-104.
Bravo-Ureta, Boris E. and Laszlo Rieger (1991). “Dairy Farm Efficiency Measurement
Using Stochastic Frontiers and Neoclassical Duality ”American Journal of Agriculture Economics 73(2): 421–28.
Bravo-Ureta and Pinheiro (1997). “Technical, Economic and Allocative Efficiency in
Peasant Farming: Evidence from the Dominican Republic” The Developing Economies 35 (1):48-67.
Coelli T. J. (1995). “Recent Developments in Frontier Modeling and Efficiency
Measurement”, Australian Journal of Agricultural Economics, 39 (3): 219-
Coelli T. J.Rao, D.S.P. O'Donnell C.J. and Battese G.E. (2005).An Introduction to Efficiency and Productivity Analysis, 2nd Edition, Springer: 41-61.
Daadi B. E., Issahaku G. and Amikuzuno J. (2014). “Technical Efficiency Analysis of Organic Mango Out-Grower Farm Management Types: The Case of Integrated Tamale Fruit Company (ITFC) Out-Growers in Northern Region” African Journal of Agricultural Economics and Rural Development, 2 (3): 129-137.
Delate K and Cambardella CA.(2004). “Organic production: Agro-ecosystem performance during transition to certified organic grain production”. Agronomy Journal 2004, 96, 1288-98.
Drinkwater, L. E., Wagoner, P. & Sarrantonio, M. (1998). “Legume-based cropping systems have reduced carbon and nitrogen losses.” Nature 396, pp262 - 265
Fane, G (1975). “Education and the Managerial Efficiency of Farmers”. The Review of Economics and Statistics, Vol. 57, No. 4 (Nov., 1975), pp. 452-461.
FAO (2000) “Food Safety and Quality as Affected by Organic Farming” Twenty Second FAO Regional Conference for Europe, Porto, Portugal, 24-28 July 2000 Agenda Item 10.1,
FAO (2003), Organic Agriculture: The Challenge of Sustaining Food Production while Enhancing Biodiversity” The United Nations, Rome, Italy
Farrell, Michael J. (1957). “The Measurement of Production Efficiency” Journal of the
Royal Statistics Society, Series A, 120(3) 253–290.
Han K.H. (1991). “A productivity measurement of activities at the micro level
“Management Accounting Research, 2(4): 249-261.
Hanson Nyantakyi-Frimpong (2013) Food Security in Northern Ghana: Issues in Historical and Contemporary Contexts. Africa Portal Backgrounder (62).
Heyne Paul (2008). “Efficiency” The concise Encyclopedia of Economics: 1157-1166.
Hashem N. Mahdi M. and Mohammad M. (2010).“Efficiency Measurement of Enterprises Using the Financial Variables of Performance Assessment and Data Envelopment Analysis” Applied Mathematical Sciences, 4(37):1843 – 1854.
Jan Heisenberg, Joseph A. Yaro (2006). “An assessment of the extent and causes of food insecurity in Northern Ghana using a livelihood vulnerability framework”, 67(1):41-55.
Kopp Raymond J. and W. Erwin Diewert (1982).“The Decomposition of Frontier Cost Functions Deviations into Measures of Technical and Allocative Efficiency” Journal of Econometrics 19 (3): 319–31.
Ministry of Food and Agriculture (2007). “Food and Agricultural Sector Development
Policy II (FASDEP)” Government of Ghana Policy Document: 24-29.
Office of the Auditor General of Canada (2007).“Understanding Efficiency”Auditing of efficiency. http://www.oag-bvg.gc.ca, Accessed on 07/11/2011.
Obeng A. M. and Oehmke J. F. (2009).“Trade and Investment Program for a Competitive Export Economy in Ghana: A Synthesis of Findings” Policy Brief, pp3-5.
Oluwatayo, I. B., Sekumade A. B. and Adesoji S.A. (2008). “Resources Use Efficiency ofMaize Farmers in Rural Nigeria: Evidence from Ekiti State”, World Journal of Agricultural Science, 4, 91-99.
Omonona, B.T., Egbetokun, O.A. and Akanbi A.T. (2010).“Farmers Resource – Use and
Technical Efficiency in Cowpea Production in Nigeria”, Economic Analysis &Policy, 40(1): 87-95.
Elen(2009). “The Market for Organic and Fair-Trade Mangoes and Pineapples: Increasing incomes and food security of small farmers in West and Central Africa through exports of organic and fair-trade tropical products” Study prepared in the framework of FAO project GCP/RAF/404/GER: 5-11
Sartorius Kurt and J Kirsten (2004). “The Cost Efficiency of Small Farm Inclusion in
Agribusiness Supply Chains.” South African Journal of Accounting Research, 18(1): 87-113.
United Nations (2012).“Ghana Comprehensive Food Security and Vulnerability Analysis (CFSVA)” World Food Program: 19-31.
United Nations Development Program (2007).“Organic Mangoes Improving Livelihoods for the Poor: Case Study of Integrated Tamale Fruit Company” Bulletin-Growing Inclusive Markets.www.growinginclusivemarkets.org 28/09/2010.
USAID (2009). “Ghana Assessing Economic Benefits: The Case of Banana, Mango, and Rice”, Ghana Moongate Associates, portfolio Economics series (1): 24-31. http://www.moongateassociates.com/Portfolio.html 13/05/2014.
Varughese, Kuruvilla (2009). “Organic farming practices for rice under diversified cropping systems in humid tropics.”The Proceedings of the International Plant Nutrition Colloquium XVI: pp4
Wiessman, S. R. (1990) ‘Structural Adjustment in Africa: Insights from the Experiences of Ghana and Senegal’, World Development, 18(12): 1621–1634.
Yifu Lin, J. (1991), “Education and Innovation Adoption in Agriculture: Evidence from Hybrid Rice in China”, American Journal of Agricultural Economics, Vol. 73, No. 3, pp. 713-723.
Zakari, A. K. (2012). “Ghana National Mango Study”: 30-32. Onlineathttp://www.intracen.org/uploadedFiles/intracenorg/Content/About_ITC/Where_are_we_working/Mu