Analysis of factors affecting the technical efficiency of cocoa farmers in the Offinso district -Ashanti region, Ghana

This paper analysed the factors that affect the technical efficiency of cocoa farmers in the Offinso district in Ghana. The study also analysed the basic determinants of technical efficiency, as well as the socio-economic variables that affect their performances. Primary data was collected through the administration of questionnaires. Stata statistical tool was used to estimate the stochastic production frontier function and the inefficiency determinants based on socioeconomic variables of individual farmers. Analyses showed that the model of the production functions were statistically significant at 0.00. Input factors studied include labour, quantity of fertilizer, pesticides, modern equipments, age of trees and farm sizes. Out of the above, labour and age of trees were not significant. Also, the estimate of inefficiency component showed that, in the exception of the age of farmers, most of the specific characteristics were not significant. It is recommended that the ability to use and adjust properly, factors such as labour, capital and age of farms would lead to increase in output. Also, inefficiency would decrease drastically if variables such as; educational level, farming experience and family size of the farmer are increased.