Productivity and Resource-Use-Efficiency of Cashew Production in Ghana

Abstract

The study was conducted to estimate productivity and resource use efficiency of cashew farmers in Ghana focusing on the Brong-Ahafo and Volta regions. First, it estimated the technical efficiency levels of cashew producers, identified the determinants of the technical inefficiency of producers and finally estimated resource use efficiency of inputs used by cashew producers. A cross-sectional data for 2017 cropping season was collected from 200 cashew farmers and the estimation was done using the stochastic frontier approach. The study reveals that the average yield was 178 kg/acres. The partial elasticity estimated indicates that labour (0.61) and farm size (0.32) contribute highest to the average output in the study area. The calculated returns to scale for cashew farms demonstrates an increasing return to scale (1.04), which implies the first stage of production. The mean technical efficiency estimates (33.6 percent) of the study suggest that the efficiency levels of cashew farmers can be improved on the average by 66.4 percent. The results on factors affecting inefficiency showed that education, experience, and land ownership were likely to reduce the technical inefficiency of cashew farmers by 0.1, 0.2, and 0.26 percent respectively. FBO membership, use of improved seeds and cashew farmers in the Volta region were found to be less efficient than farmers in the Brong Ahafo region. The study also found that farm size, capital, and agrochemicals were over-utilized by cashew farmers (MVP < MFC). Labour, on the other hand, was found to be under-utilized by cashew farmers thus not using labour to their full potential. The study recommends that stakeholders promoting and supporting the cashew industry should educate farmers through agricultural extension agents. Also, critical intervention should be made in the cashew industry with the current technology available in the cultivation of cashew to ensure efficiency. The government should invest in the cashew industry by taking control of cashew marketing in Ghana. Finally, farmers must be sensitized on the importance of applying fertilizer and pesticides on their cashew crops.