Determinants of economic efficiency among small scale beekeepers in Tabora and Katavi regions, Tanzania: a stochastic profit frontier approach

Abstract

This study applied the stochastic profit frontier model to estimate the economic efficiency of small scale beekeepers in the Tabora and Katavi regions of Tanzania. The results show that the profit of small-scale beekeepers is determined by changes in the cost of labor and materials such as wire and color paint for beehives. Reducing the cost of these can significantly increase profits in beekeeping production. Small-scale beekeepers were found to be economically efficient, with a mean efficiency of 92%. This implies that there is room for improvement by about 8% without changing the profit frontier. Contacts and follow-up by beekeeping extension officers and access to beekeeping training on improved management practices were the main factors that had a significant influence on the economic efficiency of small-scale beekeepers. Thus, the regular and timely provision of extension services and beekeeping training among beekeepers can improve their practices.