Economic analysis of maize production in central Khyber Pakhtunkhwa, Pakistan

Abstract

This study looked at profitability of maize crop and estimated growers' technical efficiency in central Khyber Pakhtunkhwa, Pakistan. Stochastic Frontier analyses were conducted over primary data, collected from randomly selected 119 maize growers. Profitability analysis confirmed high net-return for hybrid maize as compared to local maize crop. The estimated Stochastic Frontier Model-1 showed that maize yield is positively affected by hybrid seed cultivation, irrigation, organic and inorganic fertilizers application. The model predicted mean technical efficiency of 85% with a maximum possible of 97%. This indicates that 12% increase in yield is possible with the existing production technology. Results for the Stochastic Frontier Model-2 identified head's formal education, farming experience and level of involvement in agriculture and combined family structure as important factors significantly reducing inefficiency in maize production. The study recommends formal education and agricultural training for maize growers, provision of subsidy for hybrid seeds and chemical fertilizers and price support for their produce during harvest season.