This article is available at http://dx.doi.org/10.5430/wjss.v2n1p62
Technical Efficiency Indices of Urban Agriculture (UA) were determined using the stochastic frontier production
function which incorporates a model of technical inefficiency effects. In 2010, farm-level data of 270 urban
agriculture farmers in Tanzanian urban wards of towns of Arusha, Dar es Salaam and Dodoma was obtained using
semi-structured questionnaires. The parameters were estimated simultaneously with those of the model of
inefficiency effects. Using the maximum likelihood estimation technique, asymptotic parameter estimates were
evaluated to describe efficiency determinants. Study results revealed that a mean technical efficiency index (TEI) of
0.72 was achieved implying that output from urban agriculture production could be increased by 28% using available
technologies. Despite of urban farmers having entrepreneurial acumen, they faced several challenges in resource
allocation. Land size, total variable costs, and extension service charges negatively impacted on TEI. The study
recommends that the government using urban agriculture and livestock extension agents should explore profitable
levels for promoting UA enterprises to ascertain profitable TEI levels and UA units.
The Norwegian Government through the PANTIL programme at Sokoine Univerity of Agriculture in Morogoro, Tanzania.