An Assessment of Technical Efficiency for Producers of Pistachio (Case Study of Kerman Province)

Abstract

There are more than 80 percent of production and about 77 percent of acreage of pistachio product of Iran in Kerman province. In Kerman a large amount of agricultures resources have allocated to this product. In this paper we will calculate the technical efficiency sample of pistachio producer in Kerman. There are two approaches to measure technical efficiency. 1) Data Envelopment Analysis (DEA). 2) Stochastic frontier analysis (SFA). In this paper we have used the second approach that suggested by Farel. The production function of stochastic frontier in form of Cubb-Dauglass was estimated whit Maximum Likelihood approach. We have estimates the technical efficiency by frontier soft ware (version 4.1).The data of this research related to 109 producers in two cross section, (1382-1383 and 1383-1384). The average of technical efficiency was 83 percent in this sample. We have illustrated that relationship between technical efficiency and acreage of production is negative. We have classified data in four categories and have used the technique of analysis variance for testing equity of average of technical efficiency in these four categories. The null hypothesis is rejected that is the averages of technical efficiency in these categories are not equal.

Keywords

• stochastic frontier analysis
• technical efficiency
• producers of pistachio
• maximum likelihood approach