Production performance: an economic analysis of smallholder coffee producers.

Abstract

Smallholder farms produce 70 percent of total national production. This study, which was undertaken in Nipa, Southern Highlands Province by a survey, aimed to examine the level of farm investment and factors affecting production. It was found that the sampled farms made, on an average, a net income of K129.86 with a net return of K2.54 per manday of labour. The production function fitted indicated diminishing returns to scale. Farm size and capital were significant at 1 percent and 10 percent levels of probability respectively. However, farm size, family labour and capital inputs were all used excessively due to high plant density, infrequent weeding and poor management of gardens.