Technical efficiency estimation in the livestock industry : case study of the southern rangelands of Kenya

Kibara, Manyeki John and Kotosz, Balázs: Technical efficiency estimation in the livestock industry : case study of the southern rangelands of Kenya. Challenges in national and international economic policies. pp. 97-114. (2018)

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Abstract

Measurement of the efficiency of agricultural production is an important issue in developing countries such as Kenya. A measure of producer’s performance is often useful for policy purposes, and the concept of technical efficiency provides a theoretical basis for such a measure. This study investigated factors influencing the technical inefficiency of livestock production in the southern rangelands of Kenya. Using cross-sectional household data and Maximum Likelihood Estimate technique we found that the factors contributing to the inefficiency of livestock production were years of schooling of the household, household size, access to market information and input markets. The mean technical inefficiency was higher for sheep and goats (64.98%) than cattle (1.48%) production, implying that about 65% and 2% of output of the small ruminants and cattle respectively is lost due to the misallocation of variable factors within the household.

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