Factors affecting technical efficiency among coffee farmers in Cote d'Ivoire: Evidence from the centre west region

This paper presents measures of technical efficiency for a sample of 81 peasant farmers in the low-income region of Cote d'Ivoire. DEA techniques were used to compute farm-level technical efficiency (TE) measures. The analysis reveals average levels of technical efficiency equal to 36 per cent and 47 per cent respectively for the CCR (Charnes et al, 1978) and BCC (Banker et al, 1984) models. These results suggest that substantial gains in output and/or decreases in cost can be attained given existing technology. In a second step analysis, two-limit Tobit regression techniques were used to examine the relationship between TE and various farm/farmer characteristics. From a policy point of view, an important conclusion stemming from the analysis of our sample is that family size, membership to farmer's club or association and the origin of the farmer are the variables found to be most promising for action. The analysis suggests that policymakers should foster the development of the formal farmers' club or association by building, the capacity of the farmers. Our analysis also supports the argument for public sector involvement in the provision of information on labour force management to peasant farmers as a means to improve efficiency levels, and thus household incomes.