ABSTRACT:
The primary purpose of this study was to analyze the efficiency level of tea farms operated by owners and shareholders, and to explore the effect of different decisional, structural and management factors on efficiency. The data were collected from a stratified sample of 138 tea farmers operated in Rize province Turkey in 2017. The data envelopment analysis (DEA) program was used to estimate the efficiency scores. Tobit model was used to explore determinants of technical efficiency. Results disclosed that farmers can reduce their inputs use by 43% without compromising their yield level. However, they have low economic efficiency (0.41). Shareholder-operated farms were highly efficient (0.76) than the owner-operated farms. The factors such as old tea parcels, high land slope, and altitude were having a significant negative effect on farms’ efficiency. Applying fertilizer in the root zone or mixed with soil, terracing of farmland, and performing of soil test was positively and significantly contributing to efficiency. Generally, the efficiency of tea farmers is low, and mostly farm management and structure related factors were negatively affecting the farmer’s efficiency. The farmers should be aware of associated benefits with early replanting tea, fertilizer application in the root zone and terracing to control their production cost.
Key words:
tea farming; technical efficiency; economic efficiency; owners; shareholders