Mwinuka, Lutengano2024-01-152024-01-152013http://www.suaire.sua.ac.tz/handle/123456789/5895MSc. Dissertation in Agricultural EconomicsProductive efficiency measurement is very important both in developed and developing countries’ agriculture and its roles arc widely recognized by farmers, researchers and policy makers. This study attempts not only to investigate the farm size and productivity relationship debate, which has not gone through a complete circle in Tanzania, but also to find out whether inefficient resource use by farmers is a problem. Both technical and allocative efficiency were used to analyse productive efficiency. In this study, a direct measure of production efficiency of Mbinga coffee farmers using a stochastic profit frontier and inefficiency effects model was employed. The findings show that there are high levels of inefficiencies in Mbinga coffee production. The mean level of profit efficiency is 52.4% which implied that an estimated 47.6% of the profit is lost due to a combination of both technical and allocative inefficiency in coffee production. Farmers are losing about TAS 787 696 per mean index of coffee trees due to this inefficiency. Moreover, it was also revealed that, it would be more profitable if farmers increased their farm sizes from 501 to 1500 coffee trees. This would help to alleviate poverty through increased farm profit. The efficiency differences were explained largely by the household size, farmer’s experience, age of coffee trees, the education level, extension services, level of capital, and time used by a farmer to move from one coffee farm to another. It is concluded that very small and small size farms are associated with more profit-loss compared to medium size farms. It is recommended that farmers should increase their farm sizes at least to medium farm sizes of more than 1 262 coffee trees in order to increase coffee farm efficiency. Potential stakeholders should put in place initiatives which will create conducive environment for improving efficiency and profitability in coffee production business.enResearchersCoffee farmersFarm sizeMbinga districtThesis