An Economic Assessment of Banana Genetic Improvement and ...

160 CHAPTER 11
sumption and income from local sales. The
baseline data indicate that direct exposure
to new varieties through formal programs is
no longer a critical determinant of their use
in Tanzania, evidence once again that farmer-to-farmer
exchange of planting materials
is crucial. The econometric model confirms
this result. Heterogeneity among households
in terms of social, demographic, or wealth
characteristics appears to have less importance
in use decisions than does the incidence
of pests and disease—which motivates
farmers’ search for new materials in
this production system.
Third, it is evident that social capital
plays a significant role in the use of current
best practice for managing soil fertility in
banana production in Uganda. Most of the
villages in the banana producing areas foster
active social organization, with numerous
associations and high rates of membership,
although membership in economic
associations is more exclusive. Village social
characteristics will likely have especially
important implications for planting
material systems for EAHBs, because transfers
of planting material and related information
are based on farmers themselves
rather than on a formal seed industry.
The productivity of cooking bananas
and the factors that determine it depend on
the economic, climate, and soil characteristics
of regions, and as hypothesized, it is
highest in the southwest, least in Central
Region, and intermediate in Masaka. There
is some evidence that the efficiency of banana
production can be improved, particularly
in Central Region. Labor productivity
is higher in Central Region, where most
agronomic practices (such as crop sanitation)
are carried out minimally. Soil pH and
the application of manure as recommended
have positive and significant effects on productivity,
especially in the southwest and
Central Region of Uganda. The critical importance
of labor is evident in findings regarding
the age of the household head and
family size. Road infrastructure and production
credit will enhance efficiency.
Findings illustrate substantial inefficiencies
in the production of cooking bananas,
especially in central Uganda. Education improves
technical efficiency in the southwest
but not in central Uganda. Market access
(using distance to paved roads as a proxy)
improves efficiency for the sample farmers
in Masaka and southwest but not in the Central
Region, where opportunity costs of
labor are higher. Household size is positively
related to efficiency but is only significant
for central Uganda. Banana production
appears to be more efficient when
managed by men than by women, probably
due to underlying differentials in access to
resources. Access to credit increases efficiency
in the Central Region, whereas rent
and remittances improve efficiency in Masaka
and the southwest.
Policies to improve production efficiency
include investments in education,
extension, and infrastructure (roads), and
improving access to production credit for
commercially oriented producers in the
southwest and Masaka areas. Clearly, policies
will need to be tailored to the local
conditions, as demonstrated by the different
production and efficiency profiles of the
three regions analyzed here.
The analysis of banana production efficiency
reveals the presence of surplus
labor in the highlands, whereas access to
farm labor is a constraint in the lowlands.
Wages are higher for casual labor in the
lowlands, where there is a more developed
market for unskilled labor. Investment in
technology development could raise banana
productivity in the highlands. In the
lowlands, both technology development
and extension education have positive effects
on productivity. Investment in human
capital (especially women’s education) and
enabling better access to input and credit
markets could improve banana production;
investments in the paved road network
would improve the comparative advantage
of the region in banana production. Intercropping
bananas could be interfering with
the implementation of certain practices