Assessment of Profit Efficiency of Smallholder Maize Farmers in Limpopo Province, South Africa: A Stochastic Frontier Approach

Mamashila Mokgoshi John () and Antwi Michael Akwasi
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Mamashila Mokgoshi John: University of South Africa, South Africa
Antwi Michael Akwasi: University of South Africa, South Africa

Journal of Agribusiness and Rural Development, 2025, vol. 75, issue 1, 56-63

Abstract: The primary goal of this study is to evaluate the profit efficiency and identify the factors influencing profit inefficiency among small-holder maize farmers in the Limpopo province of South Africa. The research employed a stochastic profit frontier approach and collected primary data by administering a semi-structured questionnaire to 307 smallholder farmers, who were selected using a stratified random sampling method across all five districts in the study area. The results revealed that profit efficiency ranged from 0 to 0.90, with an average of 0.612. This suggests that by improving technical and allocative efficiencies, the typical maize farmer could potentially increase their profits by 38.8%. This presents opportunities for farmers to elevate their agricultural earnings, leading to a reduction in poverty. This progress could significantly impact many farmers, particularly since maize farming is their primary source of income. As a result, increasing investment in extension education through producer organisations is recommended in order to enhance agricultural productivity and improve agricultural marketing by effectively utilising marketing information.

Keywords: profit efficiency; determinants; smallholder maize farmers; stochastic profit cost function; Limpopo province; South Africa (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:pojard:v:75:y:2025:i:1:p:56-63:n:1008

DOI: 10.17306/j.jard.2025.00015r1

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