Working Document Series Open Access 2016 RUF-36279

Allocative efficiency in potato production in lowland areas of Uganda

F. BagambaC. KemigaboJ. Mugisha

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Abstract

236 words

Potato (Solanum tuberasum) is an important crop in Uganda. Although it was traditionally grown in highland areas, its cultivation has now spread to lowlands. However there is limited information on the performance of potato within the low altitudes and how resources are allocated to attain maximum profit. A study involving 276 potato farmers was carried out to; i) characterize potato farmers in the lowland districts, and ii) estimate the level of allocative efficiency among potato farmers. Data were analysed by way of t-test and linear ordinary least squares regression. Results showed a significant difference in household size, age, area allocated to potato, extension contact access, output and capital among potato farmers that planted potato in both seasons and those that planted potato in one season. Potato farmers who planted in both seasons also had significantly more experience in potato production compared to those that planted in one season. Farmers who planted potatoes in both seasons had more land allocated to it. There was inefficient in-put allocation with the allocative efficiency index being either greater than or less than one. This study has shown that inputs used by potato farmers were allocated inefficiently and farmers who planted in two seasons were found to be more experience, allocated more land to potato, produced more output and used more capital. It is recommended for potato farmers to increase on capital used, reduce on labour and land allocated to potato.

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