Efficiency Analysis Of Vegetable Production And Marketing In Kati, Republic Of Mali

Vegetable production could be increased through development of new technology andexpansion such as efficiency uses the available resources. The second approach of usingavailable resources is more easily and efficiently because there is no need to bring new areaunder vegetable cultivation or changing cropping pattern, it will also help producer toobtained a large income and reduce the poverty. Vegetables are most common and importantcondiment in kitchen in Mali. At present per capita consumption of vegetables in Mali is verylow when compared to other countries. The majority of rural population and a largepercentage of poorer strata among the urban population consume very few vegetables. Forviability of vegetable industry, it must beforehand know if the production and marketingsystem is profitable and efficient. The analysis of vegetable production and marketing systemdetermines the level and extent of production efficiency and market perfections.Keeping in view the importance of vegetable industry, its efficiency and marketing, thepresent study was carried out to analyze vegetable production and marketing system in Kati ofMali. Two vegetables namely tomato and potato were selected. Primary data were collectedfrom farmers by conducting surveys in Kati. Fifty farmers for each vegetable were selected sothe total sample size was100producers for this study. Besides,120market actors were alsointerviewed. Primary data were collected by survey method using a pre-tested questionnaireand secondary data were gathered from statistical bulletins. Time series data on market pricesin three markets of Mali for the selected vegetables was used to investigate marketrelationships. A combination of analytical techniques including the measurement of returns toscale, analysis of Cobb-Douglas production function, estimation of technical efficiency andtechnical efficiency rating across farms and marketing margins were used to assess theproduction and marketing system of potato and tomato in Kati.Cobb-Douglas production function was used to measure elasticity of production forproducers of potato and tomato in Kati. The results found that the contributions of capitalinputs were50and33percents respectively for tomato and potato followed by labor has38and45percents respectively for tomato and potato. The results also revealed that these contributions are significant. For returns to scale, results indicated that sum of coefficients is0.787and0.885respectively for potato and tomato production this implies that production oftomato and potato exhibited decreasing returns to scale. The mean technical efficiency levelwas67and57percent respectively indicating of tomato and potato in Kati. These resultsindicated that if all inputs were increased simultaneously, the output could be increased withthe same proportion. The implication of the study is that technical efficiency in tomato andpotato production could be increased by33and43percents respectively through better use ofavailable resources, given the current state of technology.The relationships between actors in marketing chains were studied by investigatingmarketing margins, distribution of costs and net returns across the actors. The results of pricespread across marketing chain indicated that share of producer in consumer FCFA was49and48percents for potato and tomato respectively, while the rest goes to collectors, wholesalersand retailers. The results further indicated that the average net profit margin of retailerFCFA.4240was three times higher in potato net profit margin FCFA.1475.