The Impacts of an Improved Technology Package on Production Efficiency: The Case of Wheat Farms in the Northern State of Sudan

Abstract

Technical efficiency among wheat farms in the Northern State of Sudan was estimated using a stochastic frontier production function approach. Empirical findings show that technical inefficiency is important in explaining the variations in yield among a sample of 100 wheat farms. Specifically, there was an average yield difference of 23% that can be bridged in the short-run only by removing the causes of inefficiency among farms. Average technical efficiency among improved technology package adopters is 94%, which is quite higher than the 67% of non-adopters. Technical efficiency was 96% for participant farmers and 72% for non-participant farmers in the ‘Enhancing Food Security in Arab Countries’ project. The average yield losses because of inefficiency are 0.5 ton ha 1 for adopters and 3.8 ton ha 1 for non-adopters. Proper extension services, farmer training and availability of finance are the most significant factors that affect technical efficiency in the study area. At the current levels of input use, an average loss of about 1.47 ton ha 1 could be prevented by improving the extension services and technology transfer activities. These results have important policy and institutional implications for governments, non-governmental organizations and extension agents working in the area as it could guide their decisions and areas of focus in the future.