Technical Efficiency of Black Tea Production
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Date
2013
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Journal ISSN
Volume Title
Publisher
Uva Wellassa University of Sri Lanka
Abstract
This research has taken effort to identify the important socio economic determinants of the
black tea production in Uva region and to estimate the technical efficiency of black tea
production in the Uva region of Sri Lanka. A structured questionnaire was designed and then
pretested with selected respondents. A total of 35 tea producers were randomly selected from
the database managed by Tea Research Institute of Uva region. The data were analyzed within
the framework of Cobb-Douglas production function and stochastic frontier production function
by using the STATA 10 and FRONTIER 4.1 c. The results revealed that the extent of tea land,
capital, VP/UVA 945 and agrochemicals cost were significant and increase the black tea
production by 0.245, 0.242, 0.013 and 0.076 percent respectively. The results revealed in
inefficiency model that experience and education were significant and experience increase the
black tea production by 0.079.This can be explained by most of the experienced farmers used
traditional varieties for their cultivation that may be reduce the yield of tea.Education was
manifested a significant negative impact and decrease the black tea production by 0.017. The
negative and significant coefficient for education suggests that the educated farmers are more
efficient than others.The mean technical efficiency of Uva region estates were estimated to be
88 percent and this was manifested that the Uva region estates still have room for the
improvements.
Description
Keywords
Agriculture, Export Agriculture, Black Tea, Tea Industrials, Tea Technology