Estimation and determinants of technical efficiency of smallholder cashew (anacardium) farmers in Dassa district, Benin: a bootstrap data envelopment approach

Abstract

Cashew nut production is becoming more important in Benin's economy and helps improve rural populations' living conditions through the income it provides. However, production is characterized by an obsolete technology and a low farm productivity. This paper examines cashew producers' technical efficiency in Dassa District in Benin using survey data collected from 100 farms in 2020. The research relied on the bootstrap modelling of Data Envelopment Analysis (DEA) while a censored Fractional Regression Model (FRM) was applied to assess the determinants of producers' technical efficiency. The results show that farms are 34.56% technically efficient. Factors affecting technical efficiency include experience, access to credit, age of farm managers, sale of cashew apples, and expenditure on education. Policies to promote cashew farm efficiency need to focus on promoting formal education in rural areas, establishing a financial literacy training programme for farm managers, and promoting the expansion of agricultural extension for farmers. In addition, producers should also set up a system for cashew apples' conservation and sale as production waste in order to increase their income.