Production efficiency of small-scale tree growers in Mufindi District, Tanzania

A Dissertation 2019

The demand for wood product is expected to double between 2013 and 2035 due to increasing demand driven largely by construction, furniture, population growth and paper sectors. Therefore there is a need for private sectors including small-scale farmers to counter balance the supply. However, the efficiency of small-scale farmers in production of trees is still unknown. Therefore this study investigated technical efficiency of small- scale tree growers and factors influencing production efficiency of small-scale farmers in Mufindi district. Structured questionnaire was administered to 244 respondents from randomly selected households. The collected data was analyzed using descriptive statistics data envelopment analysis and Tobit Model. Results indicate that small-scale tree growers were not fully technically efficient as the mean efficiency was 84.5% under Variable Return to Scale and 80% under Constant Return to Scale assumptions. Quality of seeds, farm size, extension services and marital status were major factors significantly influencing technical efficiency of the small-scale tree growers. The policy implication of the study is that technical efficiency of small-scale tree growers could be increased by 15.5% under variable return to scale and 20% under constant return to scale by improving the use of available resources also to encourage farmers to join farmer based organizations, better management of woodlots and Availability of quality seeds/seedling are options that would improve the efficiency of the small-scale tree growers