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Resource productivity and allocation efficiency in smallholder coffee farmers in Rugwe district, Tanzania
(SAP, 2000) Mwakalobo, A. B. S
This paper presents empirical findings on resource productivity and allocation efficiency in smallholder coffee farmers in Rungwe district. The data used in this paper are based on a case study that involved interviewing 90 farmers. A Cobb-Douglas production function was used to estimate the production organization of the coffee farmers, and their efficiency in resource use. The results show that the farmers display inefficient use of available resources. The results indicate that farmers would increase farm productivity by the use of adequate capital-intensive input levels in order to maximize their efficiency. However, in order to achieve the use of capital intensive inputs, farmers should be encouraged to form groups/associations through which can take the advantages of increasing the bargaining power in both input and output markets. Farmers' groups/associations further provides group liability in the procurement of credit from both formal and informal financial lending institutions. This in turn will improve farmers input purchasing power.