Technical Efficiency of Mushroom Production Among Smallholder Farmers in Uasin Gishu County, Kenya

Main Article Content

Isaya Otieno Omondi https://orcid.org/0000-0002-3329-6966
Elijah K. Ng’eno https://orcid.org/0009-0003-6121-263X
Joel Sumukwo https://orcid.org/0000-0003-0333-8085

Keywords

Technical efficiency, mushroom production, efficiency, farmers, stochastic frontier production function, Kenya

Abstract

Mushroom cultivation is an emerging crop in Kenya with significant potential to alleviate poverty and food insecurity among smallholder farmers. However, low production levels in regions like Uasin Gishu County indicate potential technical inefficiencies that limit its market potential. This study was carried out to analyze the technical efficiency (TE) of smallholder mushroom farmers in Uasin Gishu County, Kenya, and to identify the determinants influencing that efficiency. The study utilized a cross-sectional survey design. Data were collected from a sample of 114 farmers from a target population of 162 mushroom farmers, primarily growing Oyster and Button species. The sampling technique employed was Stratified Random Sampling with Proportional Allocation. Both primary (survey data collected via semi-structured questionnaires) and secondary data were used. The collected data was analyzed using descriptive statistics and a Stochastic Frontier Analysis (SFA) model. The SFA model was estimated using Maximum Likelihood Estimation (MLE), assuming a half-normal distribution for the inefficiency term. The descriptive results showed that the majority of farmers had limited access to institutional support, with 60.5% lacking access to agricultural extension services. The mean age of household heads was 52 years, with an average farming experience of 4 years. The SFA model revealed significant technical inefficiency, with TE scores ranging from 29% to 89%, and a mean TE of 67%. This implies that farmers could increase their current output by 33% without changing the existing technology or input levels. Frontier analysis showed that Man-hour Labour (β=0.665) was the most critical constraint to output, while inputs like fertilizer and wheat straw were found to be over-utilized. Analysis of the inefficiency determinants revealed that Access to Extension Services (increasing TE by 48.8%), Price of Mushroom Output (increasing TE by 33.5%), and Access to Credit (increasing TE by 8.1%) were the most significant factors in reducing technical inefficiency. However, distance to the Market was found to increase inefficiency significantly. The study concludes that substantial potential exists for mushroom output improvement in the short run. It recommends that county agricultural sectors prioritize strengthening extension service delivery and providing tailored credit facilities to enhance input allocation, close the efficiency gap, and maximize the economic benefits of mushroom production.

Abstract 115 | PDF Downloads 37

References

Aigner, D., Lovell, C. K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of econometrics, 6(1), 21. https://doi.org/10.1016/0304-4076(77)90052-5

Akudugu, M. A., Guo, E., & Dadzie, S. K. (2012). Adoption of modern agricultural production technologies by farm households in Ghana: What factors influence their decisions. University of Cape Coast. https://ir.ucc.edu.gh/xmlui/handle/123456789/4280

Amponsah, E. K. (2012). Farm households’ adoption of ecofarm integrated agricultural technologies and potential economic effects on livelihoods in Segou, Mopti and Koulikoro regions of Mali (Master's thesis, Norwegian University of Life Sciences, Ås). https://agris.fao.org/search/en/providers/122576/records/6474810779cbb2c2c1b91316

Asfaw, S., Shiferaw, B., Simtowe, F., & Lipper, L. (2012). Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia. Food policy, 37(3), 283-295. https://doi.org/10.1016/j.foodpol.2012.02.013

Austin, G., & Sugihara, K. (2014). Labour-intensive industrialization in global history. Asian Review of World Histories, 2(2), 269-274.

Battese, G. E., & Coelli, T. J. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical economics, 20(2), 325-332. https://link.springer.com/article/10.1007/BF01205442

Breusch, T. S., & Pagan, A. R. (1979). A simple test for heteroscedasticity and random coefficient variation. Econometrica: Journal of the Econometric Society, 1287. https://www.jstor.org/stable/1911963

Dlamini, N. P., Masuku, M. B., & Rugambisa, J. I. (2018). Technical Efficiency of Mushroom Farmers in Swaziland. Development, 6(1) Analysing patterns in occupational segregation by gender. Annales d'Economie et de Statistique, 293-315.

Donovan, C., Bailey, L., Mpyisi, E., & Weber, M. T. (2003). Prime-age adult morbidity and mortality in rural Rwanda: Effects on household income, agricultural production, and food security strategies (No. 1093-2016-87998). https://ageconsearch.umn.edu/record/55387/

Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the royal statistical society series a: statistics in society, 120(3), 253-281. https://academic.oup.com/jrsssa/article-abstract/120/3/253/7101561

Gaurav, S., & Mishra, S. (2011). Size-class and returns to cultivation in India: A cold case reopened. Indira Gandhi Institute of Development Research Working Paper, 2011-2027.

Godfrey, L. G. (1978). Testing for higher order serial correlation in regression equations when the regressors include lagged dependent variables. Econometrica: Journal of the Econometric Society, 1303-1310. https://www.jstor.org/stable/1913830

Greene, W. H. (2003). Econometric Analysis. Pearson Education India.

Kenya National Bureau of Statistics (KNBS). 2019. 2019 Kenya Population and Housing Census: Volume I. Population Distribution by Administrative Units. Nairobi, Kenya: KNBS.

Kimenju, J. W., Odero, G. O. M., Mutitu, E. W., Wachira, P. M., Narla, R. D., & Muiru, W. M. (2009). Suitability of locally available substrates for oyster mushroom (Pleurotus ostreatus) cultivation in Kenya. Asian Journal of Plant Sciences, 8(7). https://www.cabidigitallibrary.org/doi/full/10.5555/20103010494

Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International.

Krejcie, R. V., & Morgan, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30(3), 607-610.

Kuan, C.-M. (2008). Diagnostic Tests for Model Adequacy. Published lecture notes and research on time series and econometric model diagnostics, focusing on residual analysis to check model assumptions and adequacy.

Lagat, C, Okemwa, P., Dimo, H, Kipkurui L. and Korir J. (2012). The State of Agricultural Mechanisation in UasinGishu District, Kenya, and its Impact on Agricultural Output. Agricultural Engineering International: the CIGR Ejournal.

Lincoff, G. (2011). The complete mushroom hunter: an illustration guide to finding, Harvesting and enjoying wild mushrooms (http://books.google.de/books/about/The_Complete_Mushroom_Hunter.html).

MacKinnon, J. G., & White, H. (1985). Some heteroskedasticity-consistent covariance matrix estimators with improved finite sample properties. Journal of econometrics, 29(3), 305-325. https://doi.org/10.1016/0304-4076(85)90158-7

McMillan, J. H., & Schumacher, S. (2010). Research in Education: Evidence-Based Inquiry, MyEducationLab Series. Pearson.

Meeusen, W., & van Den Broeck, J. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. International economic review, 435

Mugenda, O.M., & Mugenda, G. A.(2003). Research methods.

Mutema, M., Basira, K., Savadye, D., &Parawira, W. (2019). Assessment of Oyster Mushroom Production and Profitability in Harare Urban and Periurban Areas RUWA),Zimbabwe. Tanzania Journal of Science, 45(1), 114-130. https://www.ajol.info/index.php/tjs/article/view/187088

Muyanga, M., & Jayne, T. S. (2014). Effects of rising rural population density on smallholder agriculture in Kenya. Food Policy, 48, 98-113.

Muzari, W., Gatsi, W., & Muvhunzi, S. (2012). The impacts of technology adoption on smallholder agricultural productivity in sub-Saharan Africa: A review. Journal of Sustainable Development, 5(8), 69.

Nathanel, N. N., Abdulsalam, Z., Rahman, S. A., & Abdoulaye, T. (2015). Socio-economic factors affecting adoption of early maturing maize varieties by small scale farmers in Safana Local Government Area of Katsina State, Nigeria. https://academicjournals.org/journal/JDAE/article-full-text/D74A6D154349

Okoth, O. K. (2018). Technical Efficiency Of Sugarcane Monoculture And Sugarcane-Soybean Intergration Among Smallholder Farmers In Awendo Sub-County, Kenya (No. 634-2018-5514).

Palapala, V., Otieno, C. A., & Onyango, B. O. (2015). Effect of wheat bran supplementation with fresh and composted agricultural wastes on the growth of Kenyan native wood ear mushrooms [Auricularia auricula (L. ex Hook.) Underw.].

Panneerselvam, P., Halberg, N., Vaarst, M., & Hermansen, J. E. (2012). Indian farmers experience with and perceptions of organic farming. Renewable Agriculture and Food Systems, 27(2), 157-169. https://www.cambridge.org/core/journals/renewable-agriculture-and-food-systems/article/abs/indian-farmers-experience-with-and-perceptions-of-organic-farming/3AA500DDB326E7DA0A1599D2E538A802

Pilvere, I., Nipers, A., & Upite, I. (2014). Agricultural land utilization efficiency: the case of Latvia. International Journal of Trade, Economics and Finance, 5(1), 65

Royse, D. J., Baars, J., & Tan, Q. (2017). Current overview of mushroom production in the world. Edible and medicinal mushrooms: technology and applications, 5-13. https://onlinelibrary.wiley.com/doi/abs/10.1002/9781119149446.ch2

Santos, J.R.A. (1999). Cronbach’s Alpha: A Tool for Assessing the Reliability of Scales. Journal of Extension, 37(2).
Shapiro, D. (2011). Farm size, household size and composition, and women's contribution to agricultural production: Evidence from Zaire. The Journal of Development Studies, 27(1), 1-21.

Sigot, (2014). Documenting and validating the efficiency of mushroom production.

Swastika, D. K. S., & Indraningsih, K. S. (2020). Strategy Formulation of Farmers Capacity Building through Technological Innovation in Disadvantaged Regions of Indonesia. Jurnal Agro Ekonomi, 38(1), 15-27.

Toomsalu, M., Pärnsalu, L., Tapfer, H., & Mesila, I. (2015). The Medical Collections of the University of Tartu. Medicina nei Secoli, 27(2), 711-732. https://rosa.uniroma1.it/rosa01/medicina_nei_secoli/article/view/136

Uasin Gishu County Integrated Development Plan (CIDP) 2018-2022,2018).

Waiganjo, M. W., Ngeli, P., Gateri, M. W., & Muriuki, A. W. (2008, March). Cultivation and commercialization of edible mushrooms in Kenya: a review of prospects and challenges for smallholder production. In International Symposium on Underutilized Plants for Food Security, Nutrition, Income and Sustainable Development 806 (pp. 473-480). https://www.actahort.org/books/806/806_59.htm

Wooldridge, Jeffrey M. (1991). "A note on computing r-squared and adjusted r-squared for trending and seasonal data." Economics Letters, 36(1), 49-54.

Yost, M. A., Sudduth, K. A., Walthall, C. L., & Kitchen, N. R. (2019). Public–private collaboration toward research, education and innovation opportunities in precision agriculture. Precision Agriculture, 20(1), 4-18. https://link.springer.com/article/10.1007/s11119-018-9583-4