Accepted 26th September, 2016
Promoting productivity and output growth among small scale producers in Kenya would be a key contribution towards the achievement of the desired 10 percent annual economic growth rate. However, the production of French beans for the export market was challenged by the requirement to grow the produce under the GlobalGAP standard scheme and, thus, on farm-level technical efficiency. The objective of this study was to determine the technical efficiency of French beans grown under the GlobalGAP regimen. This was achieved by estimating the technical efficiency scores using the non-parametric data envelopment analysis (DEA) method followed by a second step double-bounded tobit analysis to determine which socio-economic characteristics influenced the technical efficiency. A survey conducted in November and December of 2013 captured input and output levels, and the socio-economic characteristics of a sample of 266 farmers in the Central region of Kenya. The technical efficiency of GlobalGAP certified farms was found to be lower than on non-certified farms, and the technical skills required by the farmers to improve the technical efficiency were influenced by the amount of agricultural trainings provided by extension agents. The analysis suggested that public investments directed at capacity building of the agricultural growers be increased.
Keywords: Factor usage, efficiency, GlobalGAP, small-holders, export market, extension.