Exploring the Determinants of Technical Inefficiency in Mango Enterprise: A Case of Muzafargarh, Pakistan

Abstract

The study purpose is parametric estimation of technical efficiency level of mango growers and exploring those socio management factors responsible for inefficiency in mango production. A Cobb Douglas production function was applied by stochastic frontier analysis. Maximum likelihood was used to check the source of variation in mango yield. Empirical inefficiency model has been developed. Total 110 randomly selected mango growers were personally interviewed by well-designed questionnaire. Results of maximum likelihood shows, 99 percent variation from potential yield level was attributed by technical inefficiency. In result of Cobb Douglas function, the average efficiency level of mango growers was 0.60. It implies that still mango growers have opportunity of reducing the inputs usage by 40 percent without compromising the mango yield. The age of respondents, age of orchard, orchard size and intercropping were contributing in inefficiency of mango growers. On other hand Schooling years, family size, orchard experience, owned power source and access to extension were significantly reducing the inefficiency level. The efficient farmers’ social profile was much better than moderate and inefficient farmers. The technical efficiency can be increased by providing the better understanding of mango growing technology through extension services in the study area. © 2017, Universidade Federal Rural de Pernambuco. All rights reserved.