Agricultural Profitability And Technical Efficiency: The Case Of Pineapple And Potato In Sw Uganda

In this study we investigate the profitability of potato and pineapple enterprises and the technical efficiency and drivers of efficiency among potato farmers, chosen purposively within IAR4D project sites in southwestern Uganda. For enterprise profitability, a non-parametric net crop revenue analysis was used, while a stochastic frontier parametric approach was used to analyse technical efficiency. Both potato and pineapple enterprises were found to be profitable, although returns from pineapples were lower. Seasonality impacted on the gross returns of both enterprises. Pineapple prices were lower than for potatoes during the peak seasons, but off-peak prices rose 350% above the peak price, resulting in substantial increases in gross incomes. All potato farms were inefficient. However, female farmers were relatively more efficient than male farmers. Education was positively and significantly associated with efficiency, indicating that public investments in education have complementary and synergistic effects on IAR4D development outcomes in Uganda.