Technical Efficiency in Cashew Nut Production in Kilifi County, Kenya
Abstract
The agricultural sector continues to be an important pillar of the coastal economy in Kenya.
Cashew nuts together with coconuts are the principal cash crops grown in Kilifi County. Even
though efforts have been made to improve productivity in the smallholder cashew sector, not
much has been realized and productivity continues to stagnate. It seems that production
technologies generated in research institutions have had minimal impact on efficiency and
resource productivity. This study was therefore carried out with the main aim of analyzing the
economic factors that influence production of cashewnut in Kilifi County. This was done by
measuring the technical efficiency of cashew nut production and isolating the determinants of
these efficiencies. The study used ordinary least squares (OLS) and maximum likelihood
estimates (MLE) procedures to estimate parameters of identified input variables. The model also
estimated technical efficiencies of individual farmers. Results showed that land area under
cashew and extension service were significant determinants of output at five one per cent level of
significance respectively while labour was significant at ten per cent
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