Abstract:
Technical efficiency (TE) can be defined as the ability of a decision-making unit to produce
maximum output with a given set of inputs and technology. In recent years, evaluating farmer’s
efficiency in an agricultural community has become a vital issue. To reduce the poverty of
farmers, production efficiency needs to be optimized and the government-controlled policy
interventions are necessary. Objective of this study was to evaluate the TE in selected
agricultural sub-sectors and to propose possible policy interventions to the government. Study
was conducted through a meta-analysis based on empirical studies conducted by various
scientists worldwide. Research articles for the meta-analysis were selected using a thorough
screening process based on the PRISMA (Preferred Reporting Items for Systematic reviews and
Meta-Analyses) concept. Mean TE of each sub sector was calculated by averaging the TE values
from different studies in the selected articles. TE data presented in the original articles show a
considerable dispersion within a given study, in some cases dispersed in the range from 0.2
(min) to 0.9 (max). Of the 94 studies considered, only 47 studies have recorded a TE of above
0.8, where livestock sector stands out predominantly (poultry, dairy an aquaculture). Among the
major crops belong to this category, cucumber and B-onion dominate. The highest mean TE was
recorded in B-onion (0.83±0.15) whereas the lowest was recorded in maize (0.703±0.09) and in
soybean (0.705±0.13). The TE of chili cultivation was 0.78 with the greatest variability (0.19
SEM) among the crops considered, which signifies the unpredictable nature of the chili
cultivation. Dairy, poultry and aquaculture farming operations were found to be highly
technically efficient having mean TE values of 0.80±0.16, 0.89±0.02 and 0.88±0.08, respectively.
The broad differences in the technical efficiencies show that there is a need to make farmers
aware to operate the farming techniques appropriately. Findings of this study will lead to
several key policy implications including, improvement of the socioeconomic characteristics of
farmers, implementation of farmer field schools (FFS) and establishment of a cautious and
gradual strategy for expansion of the rural financial institutions in the farming communities in
Sri Lanka.
