Data Envelopment Analysis (DEA) to Estimate Technical and Scale Efficiencies of Smallholder Pineapple Farmers in Ghana

Kwaku Boakye (), Yu-Feng Lee, Festus F. Annor, Samuel K. N. Dadzie and Iddrisu Salifu
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Kwaku Boakye: Department of Economics, Applied Statistics and Int’l Business, College of Business, New Mexico State University, Las Cruces, NM 88001, USA
Yu-Feng Lee: Department of Economics, Applied Statistics and Int’l Business, College of Business, New Mexico State University, Las Cruces, NM 88001, USA
Festus F. Annor: Department of Agricultural Economics and Extension, School of Agriculture, College of Agriculture and Natural Science, University of Cape Coast, Cape Coast 00233, Ghana
Samuel K. N. Dadzie: Department of Agricultural Economics and Extension, School of Agriculture, College of Agriculture and Natural Science, University of Cape Coast, Cape Coast 00233, Ghana
Iddrisu Salifu: Department of Applied Economics, School of Economics, University of Cape Coast, Cape Coast 00233, Ghana

Agriculture, 2024, vol. 14, issue 7, 1-14

Abstract: This study focuses on evaluating the technical and scale efficiencies of smallholder pineapple farmers in Ghana’s Central Region. We surveyed 320 participants selected using random sampling and applied an input-oriented Data Envelopment Analysis (DEA) method to gauge their technical, pure, and scale efficiencies. Our findings indicate that the mean technical efficiency among these farmers is 0.505, with individual scores ranging from 0.079 to 1.000. Notably, 90.82% of the farmers are operating below maximum efficiency levels, suggesting a potential input reduction of up to 49.5% while maintaining current production levels. Relaxing the assumption of constant returns under Variable Returns to Scale (VRS) conditions reveals a notable improvement in technical efficiency, with 10.82% more farmers achieving optimal efficiency levels. Furthermore, our analysis highlights scale inefficiencies, with 67.26% of farmers operating below optimal scale levels. By increasing production by 22.8%, these scale-inefficient farmers could enhance their efficiency and productivity within existing technological frameworks. These findings underscore the importance of collaborative efforts among policymakers, practitioners, and stakeholders within the agricultural value chain to implement interventions such as improving access to technology and innovation for smallholder farmers and making necessary investments in farmer education and training programs to enhance both technical and scale efficiencies in Ghana’s pineapple sector. Such initiatives can drive sustainable growth, improve farmers’ livelihoods, and bolster the sector’s overall competitiveness.

Keywords: data envelopment analysis; technical efficiency; scale efficiency; farming production (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
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