Determinants of Technical Efficency of Smallholder Farming in Lukulu, Zambia

Mundia Mukwalikuli

The study examines technical efficiency of smallholder rice farming in Lukulu district of Zambia. The study uses farm level data collected through a survey of 120 smallholder rice farmers selected using simple random sampling method. The data were analyzed using descriptive statistics and stochastic frontier production function approach. The estimated stochastic frontier Cobb-Douglas production function revealed that farm size, fertilizer and agrochemicals have statistically significantly positive effects on production of rice in the district. The results for technical efficiency analysis indicated that farm level technical efficiency ranged from 40.4% to 97.6% with the mean of 76.9%. This implies that there is potential to increase rice production for smallholder farmers in the district by 23.1% without increasing input usage but using available technology. The inefficiency model indicates that extension, credit, planting method and number of cattle owned were significant. The age, gender, household size and marital status were insignificant, meaning that they don’t have any significant effect on technical efficiency. To improve efficiency of rice production in the district, extension, credit, adoption of improved planting methods and ownership of assets (cattle) should be encouraged.