Stochastic Frontier Analysis of Production, Socio-economic and Institutional Factors Affecting Technical Efficiency of Cowpea Production in Chuka Sub-county, Kenya

Abstract

Cowpea is one of the most important vegetable that ranks third among pulses and top five leafy vegetables consumed in Sub Saharan Africa. In Kenya cowpea contributes to cheap supply of nutritious food, revenue and food security. Despite its importance, cowpea production levels are a fraction of the potential due to low technical efficiency of production which affects the revenue levels and food security of the smallholder farmers. This study aimed to determine the production, socio-economic and institutional factors affecting the level of technical efficiency among smallholder cowpea farmers in Chuka Sub County, Tharaka Nithi County, Kenya. Using semi structured questionnaire in a population of 12905 households and using multistage sampling technique from 389 households cross-sectional data on production factors, socioeconomic and institutional characteristics was collected. Data collected was analyzed using descriptive statistics and stochastic frontier production function. The results indicated that production factors, socioeconomic and institutional characteristics significantly affected cowpea production. The mean technical efficiency index was 0.34. The stochastic frontier analysis revealed that production factor coefficients of labour (0.825), topdressing fertilizer (0.635), manure (0.325), agrochemicals (0.221) and land size (0.628) were all positive and statistically significant at 5% level. The inefficiency model revealed that the coefficients of socio-economic factors age (0.038), education (-0.156) and farming experience (-0.053), and the institutional factors, information sources/extension contact (-0.669) and access to digital financial services (1.527) were negative but statistically significant, except for age and access to digital service that were positive and significant. These variables were the determinants of technical efficiency in cowpea production. The results suggest that there is potential for cowpea farmers to increase production and net profits in the long run by efficient utilization of the existing mix of production inputs and technologies. Formulation of policies revolving around the significant variables, input supply, technology transfer and subsidies; extension services, information exchanges and market linkages are recommended to palliate technical inefficiency in cowpea production among farmers.