Efficiency in Uganda’s seed potato systems
International Journal of Social Economics
ISSN: 0306-8293
Article publication date: 27 October 2023
Issue publication date: 19 April 2024
Abstract
Purpose
This paper aims to examine the level of economic efficiency and factors that influence economic efficiency among seed potato producers in South-western Uganda.
Design/methodology/approach
The paper analyses the economic efficiency of 499 informal and 137 formal seed producers using primary data collected through a structured questionnaire. A multi-stage sampling technique was used to select the study sites and specific farmers. A one-step estimation procedure of normalized translog cost frontier and inefficiency model was employed to determine the level of economic efficiency and the influencing factors.
Findings
The results showed that mean economic efficiencies were 91.7 and 95.2% for informal and formal seed potato producers, respectively. Furthermore, results show significant differences between formal and informal seed potato producers in economic efficiency at a one percent level. Market information access, credit access, producers' capacity and experience increase the efficiency of informal while number of potato varieties, market information access and producers' experience increase economic efficiency for formal counterparts.
Research limitations/implications
Most seed potato producers, especially the informal ones do not keep comprehensive records of their production and marketing activities. This required more probing as answers depended on memory recall.
Practical implications
Future research could explore panel data approach involving more cropping seasons with time variant economic efficiency and individual unobservable characteristics that may influence farmers' efficiency to validate the current findings.
Social implications
The paper shows that there is more potential for seed potato producers to increase their economic efficiency given the available technology. This has a direct implication on the economy through increased investment in the production and promotion of high yielding seed potato varieties to meet the growing national demand for potatoes.
Originality/value
The paper bridges the gap in literature on economic efficiency among seed potato producers, specifically in applying the normalized translog cost frontier approach in estimating economic efficiency in the context of potato sub-sector in Uganda.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2021-0641
Keywords
Acknowledgements
The authors acknowledge the African Economic Research Consortium (AERC) and National Agricultural Research Organization (NARO) Uganda for the financial and material support provided towards this study.
Citation
Aheisibwe, A.R., Lokina, R.B. and Hepelwa, A.S. (2024), "Efficiency in Uganda’s seed potato systems", International Journal of Social Economics, Vol. 51 No. 5, pp. 682-697. https://doi.org/10.1108/IJSE-10-2021-0641
Publisher
:Emerald Publishing Limited
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