Economic Efficiency and International Competitiveness of Wheat and Faba Bean in Northern and River Nile States-Sudan

No Thumbnail Available
Date
2015-06-16
Authors
Adil Ahmed Ali, Ibrahim
Journal Title
Journal ISSN
Volume Title
Publisher
UOFK
Abstract
The primary objective of this study was to estimate the economic (technical and allocative) efficiency of growing wheat and faba bean and to evaluate their international competitiveness in the Northern State (N.S) and River Nile State (R.N.S). A questionnaire with multi-stage sampling technique was used. In 2004/05 winter season 60 respondents were choosing randomly from each locality (Dongola and Ed-abba localities in N.S and Abu-Hammed and El-matamma localities in R.N.S.), which are famous for wheat and faba bean production. The panel data of 1996-2007 of the two states were used as secondary data. The stochastic frontier of Cobb-Douglas tran-log production and cost functions were chosen to generate technical and economic efficiencies, using 2004/2005 cross-sectional data. For the panel data, the stochastic frontier of Cobb-Douglas production and cost functions were used. All functions were estimated by Frontier 4.1 programme. The Policy Analysis Matrix (PAM) methodology was used to determine the level of competitiveness in the production of wheat and faba bean in the four localities in 2004/05 season and the data of 1996-2007. The results showed that farmers who cultivated faba bean were highly economically efficient than farmers who cultivated wheat in all the localities and their allocative efficiencies were sources of gain. The results of economic efficiency of wheat and faba bean per year during 1996-2007 period revealed that N.S had, on average, higher economic efficiency of wheat and faba bean production than R.N.S. The results of PAM analysis showed that faba bean was more competitive than wheat, while both of them have comparative advantage in all the localities. In general, the prevailing incentives structure affected wheat and faba bean farmers negatively in their inputs costs and positively in their output prices and the overall incentives were positive due to their output prices in all the localities. The average PAM indicators revealed that the trend of government policies in 1996-1999 period reflected negative incentives to wheat and faba bean inputs and wheat received more protection in its output. The two crops were lacking economic efficiency in the two states. In the two final periods of 2000-2003 and 2004-2007, the same policy of incentives and protection of wheat was continued. Wheat had no comparative advantage in the two states, due to the continued self-sufficiency policy which goes against it, while faba bean had a comparative advantage in the two states. The two crops were received more incentives in their outputs prices than their inputs costs in both states. The study recommended that the government should adopt new technological innovations to increase the technical efficiency of wheat and faba bean and gave more inputs incentives for wheat to raise its allocative efficiency. Comparing to faba bean, the continued self-sufficiency policy of wheat, lead it to lose its comparative advantage in the two states. This necessitates the need to raise wheat and faba bean productivities, in order to improve their competitive and comparative advantages and to safe food security policy for the two states in production and Sudan as a whole
Description
Keywords
Economic Efficiency and International Competitiveness of Wheat and Faba Bean in Northern and River Nile States-Sudan
Citation
Collections