Technical Effeciency Of Small Scale Banana Farming In Meru County, Kenya

ABSTRACT

Banana production is important due to the role it plays in the economy of Kenya. It provides income to the farmers; generate job opportunities and boost food security in the country. Banana is ranked as the fourth most valuable crop in the world after maize, wheat and paddy. In some Eastern and central parts of Kenya banana plantations have replaced coffee plantation which was formerly the main source of income to the farmers in the region. Nevertheless, despite the important roles the banana production plays in the economy of Kenya, the overall banana output has been falling in the last two decades notwithstanding the increase in area under banana production. Moreover the full potential of fruits production in Kenya, among them banana production remains unexploited despite the prospects for growth in demand owing to rise in demand for fresh fruits and fruit products. In Kenya the area under banana production has been increasing, however there has been no correspondence increase in banana output. Moreover, the banana output per acre is lower compared to the probable output per acre. In the existence of scarce production resources (especially land), the achievement of maximum technical efficiency at farmer level would be key to achieving sufficiency in banana production and enhancing food security which is among the Kenyan government’s big four agenda. The study addressed two objective; the estimation of technical efficiency and the establishment of the determinants of the technical efficiency of banana farming in Imenti South, Meru Kenya. The non-experimental research design was used, utilizing cross-section data which was collected by use of questionnaires which were filled by sample farmers. The stratified random sampling design was used to pick a random sample of farmers to participate in the study. The quantitative data on inputs and output for every sampled farmers was collected. The study used the maximum likelihood to determine the stochastic frontier production function and a multiple regression analysis to determine the determinants of technical efficiency. The technical efficiency was measured in the five wards of Imenti South Sub-County which are the main cultivators of bananas for commercial purposes. To realize the objectives of this study, data from 91 valid questionnaires filled by small scale banana famers in the study area was used. Raw data was systematically organized and stochastic frontier analysis was utilized to estimate the efficiency levels. The Stochastic Frontier Analysis (SFA) results indicated that the average technical efficiency for small scale banana farmers was approximately 69 percent, this means the farmers on average were 31 percent technically inefficient. The regression results for efficiency model showed the age of the farmer, the highest education level achieved by the farmer, access to water for irrigation, access to credit had direct or positive effect on technical efficiency whereas access to extension services, the farmer’s household size, gender of the farmer, land ownership by the farmer and the farmer’s experience in banana farming had inverse or negative influence on technical efficiency. The study concluded that the small-scale banana production falls short the frontier output and therefore recommends availing of credit facilities at affordable rates to the farmers, formation of farmers’ cooperatives and other self-help groups to enhance the disbursement of credit and other services, the government should ensure cheaper fertilizer is readily available to the farmers and offering frequent extension services to the farmers. These would result to an improvement in efficient production of bananas