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Abstract
Malawi has experienced a forward shift in its demand for Irish potato (Solanum tuberosum)
consumption. Given limited resources at farmers’ disposal, meeting the growing demand will
require farmers to follow the efficient path of the farm production resources. This paper, therefore,
is an attempt to measure the cost efficiency of smallholder Irish potato farmers in Dedza district
of Malawi using a translog cost function, inefficiency effect model and input elasticities derived
from a system of cost share equations estimated by Iterated Seeming Unrelated Regression
method. A multi-stage random sampling technique was used to select 200 Irish potato farmers
in Dedza in 2011 from whom input-output data and their prices were obtained. Results indicate
that the mean cost efficiency of Irish potato production in Dedza District is 0.67 with scores
ranging between 0.15 and 0.94. The cost efficiency differences are significantly explained by
non-farm employment, education, credit access, farm experience, degree of specialization,
household size and frequency of weeding. The highest input substitution existed between labour
and fertilizer, followed by seed-fertilizer. One policy issue is raised; credit should be extended
to Irish potato farmers to enable them purchase farm inputs.