Determinants Of The Economic Efficiency Of Cassava Production In Bomi And Nimba Counties, Liberia

Abstract

Cassava is both a food and a cash crop. It is the only crop of the root and tubers group that is cultivated in all tropical regions of Latin America, Africa and Asia. More than 450 million Africans consume cassava daily as a staple. In Liberia, more than 74% of the agricultural households in Liberia cultivate cassava. Yet, there is still low domestic food production. The mean supply of cassava output is short of the regional average of 10 metric tonnes per hectare. And, there are knowledge gaps and dearth of empirical studies to inform stakeholders about the efficiency of cassava production. Hence, the study sought to analyze determinants of the economic efficiency of cassava production in Bomi and Nimba counties. Using a multistage sampling technique, primary data was collected from 303 farmers. Data was analyzed using STATA 14.2 and Microsoft spreadsheets. Two stochastic frontier models, using Trans-log production and revenue functions, were estimated to determine the economic efficiency of cassava production in Bomi and Nimba counties; and a two-step stochastic meta-production frontier was estimated to compare the technical efficiency of production resources in the subsector. From the stochastic frontier models, the mean technical, allocative and revenue efficiency scores for Bomi farmers were 63.4%, 57.4%, and 40.6%; and for Nimba farmers were 31.7%, 31.1%, and 13.5% respectively. The key determinants of revenue efficiency in both regions were the farmer’s age (with a negative effect) and farming experience (with a positive effect). The mean meta-frontier technical efficiency (MTE) was determined at 40.48 percent. Gender (1=female) and access to credits were the determinants of the metafrontier. The study recommends more involvement of women and young farmers through farmer field schools. Also, a multi-stakeholder venture offering microfinance services including, microcredits and farming insurance is needed to improve the production efficiency of cassava farmers.