Production risk and technical efficiency of dry-season vegetable farmers in the Upper East Region of Ghana

The Ghanaian population is aware of the increasing health challenges in our health facilities and the need to consume more vegetables to improve their health status. This, coupled with population growth and changing consumer patterns has led to an increasing demand for vegetable products in Ghana. Smallholder farmers in the country have thus intensified the production of vegetables during the dry season to meet consumers’ demand and to generate income. However, their outputs have been lower than the country’s potential, so the research was conducted to identify the causes and determinants of the low yields. A total of 322 dry-season vegetable farmers in seven (7) districts in twenty-four (24) communities were selected from the Upper East Region of Ghana using a purposive random sampling technique. The Kumbhakar model was employed to compute the production risk, technical inefficiency and determinants of vegetable production in the region. The study reveals that the input variables: labour, seed, fertilizer, agrochemical and irrigation costs positively are related to the output value of vegetables with an increasing return to scale. In addition, labour, seed and agrochemical costs show a significant production risk-decreasing effect while the risk of vegetable production is reduced with fertilizer and irrigation costs. The study further depicts that extension visits, experience, water pumps and gravity-fed irrigation systems positively affect the technical efficiency of dry-season vegetable production. Again, given the current state of technology and resources available to the farmers, enhancing the vegetable outputs could be achieved by reducing the technical inefficiencies by 27% while considering the effects of production risk. The study concludes that the farmers can improve the output of the vegetable farms for higher income by adopting the best vegetable production practices such as efficient water-saving irrigation technologies and fertilizer usage while adopting the knowledge from the extension training to improve their technical efficiency.