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Assessment of Profit Efficiency of Smallholder Maize Farmers in Limpopo Province, South Africa: A Stochastic Frontier Approach Cover

Assessment of Profit Efficiency of Smallholder Maize Farmers in Limpopo Province, South Africa: A Stochastic Frontier Approach

Open Access
|Mar 2025

Abstract

The primary goal of this study is to evaluate the profit efficiency and identify the factors influencing profit inefficiency among small-holder maize farmers in the Limpopo province of South Africa. The research employed a stochastic profit frontier approach and collected primary data by administering a semi-structured questionnaire to 307 smallholder farmers, who were selected using a stratified random sampling method across all five districts in the study area. The results revealed that profit efficiency ranged from 0 to 0.90, with an average of 0.612. This suggests that by improving technical and allocative efficiencies, the typical maize farmer could potentially increase their profits by 38.8%. This presents opportunities for farmers to elevate their agricultural earnings, leading to a reduction in poverty. This progress could significantly impact many farmers, particularly since maize farming is their primary source of income. As a result, increasing investment in extension education through producer organisations is recommended in order to enhance agricultural productivity and improve agricultural marketing by effectively utilising marketing information.

DOI: https://doi.org/10.17306/j.jard.2025.00015r1 | Journal eISSN: 1899-5772 | Journal ISSN: 1899-5241
Language: English
Page range: 56 - 63
Accepted on: Feb 4, 2025
Published on: Mar 31, 2025
Published by: The University of Life Sciences in Poznań
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2025 Mokgoshi John Mamashila, Michael Akwasi Antwi, published by The University of Life Sciences in Poznań
This work is licensed under the Creative Commons Attribution 4.0 License.