Determinants of Technical Efficiency in Rice Production in Gihanga (Burundi) Irrigation Scheme: A Stochastic Production Frontier Approach

Abstract

This paper estimated the technical efficiency of rice production under irrigation system in Gihanga, Burundi and attempted to unravel the determinants of technical inefficiency. A Cobb-Douglas stochastic frontier production function was used. The study showed that the average of technical efficiency was 73%. This meant that technical inefficiency of 27% constituted a challenge to overcome by the rice producers in Gihanga. According to Cobb-Douglas model, inorganic fertilizer and pesticide applications showed significant positive and negative effects on production function respectively. The inefficiency model revealed that technical efficiency increased significantly as result of experience but decreased with age of rice producers. There was room to expand rice production through appropriate farmers’ training and timely pesticide delivery. Besides, the extension service should be aware of the experienced farmers as a resource with potentials to train the less experienced ones and focus their attentions on the aged farmers.