Sources of technical efficiency among smallholder maize farmers in southern Malawi

Central to economic activities in Malawi, the agricultural sector accounts for 35 per cent of real gross product. It generates more than 90 per cent of the country’s foreign exchange earnings and provides paid and self-employment to 92 per cent of the population. The government distinguishes between smallholder farmers and estate farmers, the latter being large-scale commercial operations.

One constraint in achieving food security has been the small size and fragmented nature of land holdings among a large proportion of households in Malawi. Nonetheless, since independence there have been several attempts by the government to improve the productivity of food crops on small farms, particularly for maize, including the development of high yielding maize varieties, subsidisation of farm inputs, provision of credit facilities, and the liberalisation of both farm produce prices and farm produce marketing. While there
have been several studies on food production in Malawi, the focus has mainly been on technology development and adoption, production constraints, the impact of structural adjustment policies, and the impact of price and marketing liberalisation. 

The main objective of this study is to estimate technical efficiency and identify the factors that explain variations in technical efficiency. Specific objectives include:

• To estimate mean and plot-specific technical efficiency levels in smallholder farms producing maize, the main staple crop.
• To examine the impact of technology adoption, such as improved seeds and fertiliser application, on the technical efficiency of smallholder farmers.
• To determine the relative role of farmer education, use of fertilisers and hybrid seeds, membership in an association, and access to extension services.
  

The following are the findings of the study:

• Smallholder maize farmers in Malawi are inefficient; the average efficiency score is 46.23 per cent,  and 79 per cent of the plots have efficiency scores below 70 per cent.
• That inefficiency declines on plots planted with hybrid seeds and for those controlled by farmers who belong to households with membership in a farmers club or association.