Assessment of technical efficiency of maize production in Sri Lanka

Maize, being a primary ingredient for food and feed industry, is a vital cereal crop in Sri Lanka. The escalating demand for poultry feed and pre-cooked processed cereal items have significantly increased the demand for local maize production over the last several years and thus, productivity enhancement of local maize producers is an urgent and timely need. This study examines the degree of technical efficiency of maize production in Sri Lanka and its determinants using a stochastic frontier production function. The production function was specified treating maize yield as the dependent variable and seed, fertilizer, agro-chemical, machinery and labor as the independent variables. An inefficiency model was specified to find out potential determinants of technical efficiency. Data for the estimation was gathered from a survey conducted in Anuradhapura, Monaragala and Ampara districts covering 60 farmers from each district. The results revealed that the mean technical efficiencies of maize production in Anuradhapura, Monaragala and Ampara are 59%, 64% and 65% respectively. The technical efficiency of an average maize farmer is 62% implying that there is a large potential to enhance maize production without incurring an additional cost. Primary occupation, education and experience are the major determinants of technical efficiency of maize production. Provision of targeted extension services, facilitation of knowledge and skills sharing between experienced farmers and bringing young farmers in to the maize value chain are recommended to increase the technical efficiency of maize production.