Determinants of technical efficiency of soybean production among farmers in Bungoma County, Kenya

Abstract

Soybean (Glycine max (L.) is an important crop in the world. It has been the dominant oilseed produced since 1960’s in Kenya and is used as human food, livestock feed, and for various industrial purposes. Biophysical conditions in many parts of Kenya favor the production of soybeans. Agronomic experience has shown that soybean can be successfully grown in Kenya using low agricultural input. Despite this huge potential Kenya has in soybean production and the impact of past efforts aimed at promoting soybean in the farming systems of Kenya, the results have been insignificant. Domestic production has remained constant and still stands at about 5,000 tons per annum. This leads to the question as to whether or not it is technically efficient to produce soybeans in Kenya, particularly in Bungoma County which harbors huge potential for soybeans production yet its productivity has remained low. The main objective of the study was to explore ways likely to increase productivity of soybean farmers in Bungoma County through a better use of the factors employed in soybean production, and hence increase the farmers’ income. To achieve this, the following three specific objectives were pursued: (i) To analyze the socio-economic characteristics of soybean farmers in Bungoma County, (ii) To estimate the technical efficiency level of individual soybean farmers in Bungoma County and (iii) To examine socio-economic factors that influence technical inefficiencies among soybean farmers in Bungoma County. The study used primary data that were gathered from a sample of 168 soybean farmers in Bungoma County through administration of a structured questionnaire. The multi-stage random sampling technique was used. On the analysis of data, Descriptive statistics was used to analyze socio-economic characteristics while the Cobb-Douglas stochastic frontier production function was used, in order to estimate the level of technical efficiency in a way consistent with the theory of production. The technical inefficiency effects function was estimated simultaneously with the stochastic production function using a One-stage procedure in Frontier 4.1 computer program. The results show the dominance of female and old people in soybean production in Bungoma County. The results further reveal the existence of technical inefficiencies in soybean production among farmers in Bungoma County. The mean technical efficiency of soybean famers was found to be 75.25%. On the determinants of inefficiency, the study found that; gender, experience, credit access, extension services, certified seeds and membership to social group significantly reduce the technical inefficiencies among soybean farmers in Bungoma County. Increase in age of a farmer was found to significantly increase inefficiencies among Soybean farmers in Bungoma County. The study recommends: Encouragement of youths and males to participate in soybean farming, increased extension services, provision of credit services, encourage farmers to join social groups and to encourage soybean farmers in Bungoma County to use certified soybean seeds.