Authors : Walter Koech, Gicuru K. Ithinji, Lawrence K. Kibet and Evans Ngenoh
Abstract: The current level of pineapple production in Kenya and in Bureti district in particular is lower than the expected optimum level, hence prohibiting farmers’ significant returns from this enterprise. This research aimed at measuring the level of allocative efficiency, as well as determining the causes of allocative inefficiency in small-scale pineapple, production in Bureti District. This will contribute to the understanding of the extent to which they can appropriately adjust productive resources in order to achieve the optimal level of output. Multistage sampling procedure was used to get a random sample of 150 pineapple farmers and primary data was collected by use of a pretested structured questionnaire. A stochastic frontiers production analysis method was used to estimate the allocative efficiency of the pineapple growers. The results of the study indicate that the average allocative efficiency of pineapple production was 0.355. Regarding the sources of allocative inefficiencies, the results showed that the estimated coefficients of age and access to credit were significant with negative effects, thus implying that they reduced allocative inefficiencies. The findings of the study point to the importance of increased youth participation in agriculture, as well as improved farmer access to credit. Through this pineapple, farming will be more productive leading to improved income and thus reducing poverty level among the pineapple producing households. If farm households were to operate on the frontier, they will achieve a cost savings of 64.48% and if the average farm household in the sample was to achieve the allocative efficiency level of its most efficient counterpart, then the average farm household could realize a 59.18% cost savings while the most allocatively inefficient farming household revealed a cost saving of 86.94%.
Walter Koech, Gicuru K. Ithinji, Lawrence K. Kibet and Evans Ngenoh, 2014. Evaluation of Allocative Efficiency of Small-Scale Pineapple (Ananas comosus) Production in Bureti District, Kenya. Agricultural Journal, 9: 61-67.