Technical efficiency analysis of paddy production in Tanzania

Tanzania paddy sector is special within Southern East Africa region since Tanzania is the second largest paddy producer in the region. Paddy production has increased in the country for the past ten years. On the other hand, due to increasing population and urbanization, demand for paddy has also increased in the same period but there has not been improvement in yields. The increase in agricultural production has been achieved through land expansion during this period. To achieve sustained agricultural growth efficiency levels of farmers need to be determined, to reduce pressure on clearing land for agriculture expansion while increasing agricultural production and productivity. This study examined technical efficiency of paddy farmers in Tanzania and associated factors that affect their efficiency levels. Analysis was accomplished using Stochastic Frontier Model through FRONTIER 4.1 program. Trans log production function was fitted to the National Panel Survey (NPS) data 2012/13 to generate results. Results revealed that technical efficiency of paddy producers ranged from 0.01 to 0.9 with average of57% and the existing output was being achieved through expansion of farm size. Increase in planted area significantly influenced efficiency of paddy farmers negatively while family labour, primary level of education and use of improved seeds, agrochemicals, irrigation and hired labour improved efficiency of paddy farmers. The study recommended that, for farm level technical efficiency of paddy farmers to improve, the use of yield improving technologies need to be encouraged. These should include the use of improved seeds, fertilizers and agrochemicals (pesticides and herbicides). In addition, investment in irrigation agriculture is necessary for paddy production to cope with inadequate seasonal rainfall.