Allocative Efficiency Of Irrigated Tomato Production In The Upper East Region, Ghana

ABSTRACT Efficiency has been considered as a means of enhancing the productivity of farmers, with most studies on production been geared towards that direction. The inability of farmers to efficiently use available resources has hindered the production of food in Ghana, hence resulting in a deficit in food supply. This study assessed the allocative efficiency of resource use in irrigated tomato production in the Upper East Region. The study was carried out in the key tomato growing districts in the Upper East Region, which are also endowed with well-established public irrigation schemes. These districts include: Kassena Nankana East Municipal, Bongo District and Bolgatanga Municipal. Multistage sampling technique was employed in selecting 80 tomato farmers. Primary data were sourced from tomato farmers through the administration of a semi-structured questionnaire. Data were analysed using descriptive statistics, gross margin analysis, Cobb-Douglas production function and marginal value productivity. Results from the Cobb-Douglas function signify that the variation in yield is explained by the quantity of labour, fertiliser, weedicide, irrigation cost and access to extension service, these variables also showed a positive relationship with yield which is in consonance with a priori expectations. The scale elasticity value of 0.69 is an indication of decreasing returns to scale, thus suggesting that the production is in the rational stage of the production function. The per hectare gross margin analysis showed that, the irrigated tomato production system which does not use water pumps is profitable than the irrigated production system which uses motorised pumps. Farmers who did not use motorised pumps incurred a variable cost of GHS 2,453.68 whereas, the users of motorised pumps incurred GHS 3,022.01. On the average, farmers made a mean revenue of GHS 4,663.54 per hectare of tomatoes produced. The study further revealed that all the productive inputs considered in the study (seed, fertiliser, labour, insecticide, weedicide and irrigation) were not efficiently allocated. Fertiliser and weedicide were underutilised. Seed, labour, insecticide and irrigation were also over utilised. The study thus concludes that irrigated tomato farmers in the Upper East Region are allocatively inefficient. It is recommended that, field demonstration programmes by the Ministry of Food and Agriculture and research institutions such as Council for Scientific and Industrial Research (CSIR) should be strengthened to expose farmers to the practical results of using appropriate quantities of inputs and adhering to good field management practices. The Ministry of Food and Agriculture should also promote agricultural extension education through the various media available in the country to educate farmers on good agronomic practices to enhance productivity through the reduction of the average unit cost of production. Government should also provide financial support for small scale tomato farmers, through programmes like the Ghana Agricultural Sector Investment Programme (GASIP). These support programmes should have an innate policy that mandates beneficiaries to co-finance their production, since this will help to eliminate unserious farmers who might be risk averse and only interested in extorting public funds.