Determinants of Technical Efficiency and Production Costs in Small-Scale Apple Farms in Albania
Year: 2023
Type: article
Abstract: The aim of this research is to identify the factors that influence the technical efficiency of total production costs in apple farms, addressing some of the complexities posed by small-scale farming, within the regional and national context. The data of the study were collected from 150 randomly selected apple farms in Korca district, one of the major apples growing regions in Albania. The methodology approach consists of an econometric modelling of the factors that affect farm efficiency, capitalizing on the utility of the Stochastic Frontier Analysis (SFA), as a tool for gauging the spectrum of technical efficiency levels exhibited by apple farms. The findings reveal the substantial impact exerted by various factors such as farm size, irrigation, the deployment of capital stock, and the quantity of pesticides and fertilizers upon the technical efficiency of the total production costs. Farmers involved in apple production can improve the efficiency level by improving the irrigation techniques, and optimizing the quantity of fertilizers and capital stock. Also, apple producers in Albania may overcome yield instabilities by extending the area planted with apples.
Authors: Aldona Minga, Dorjan Marku
Institution: Fan Noli University
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4390591987