Farm-level technical efficiency in temperate horticulture: evidence from apple, pear, and cherry growers

Abstract

Improving resource-use efficiency is fundamental to enhancing agricultural productivity and promoting sustainable horticultural development, particularly in regions where opportunities for expanding cultivated land and increasing input use are limited. This study evaluates the technical efficiency of apple, pear, and cherry growers in the Kashmir Valley and examines the socioeconomic, institutional, and regional factors associated with farm-level technical efficiency. Primary data were collected from 418 horticultural households during 2023 using a multi-stage sampling approach. Technical efficiency was first estimated separately for apple, pear, and cherry growers using an input-oriented Data Envelopment Analysis (DEA) framework under both Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) assumptions. Scale efficiency was subsequently estimated, while a pooled DEA model was employed to generate farm-level technical efficiency scores for the second-stage analysis. The determinants of technical efficiency were examined using Tobit regression, supported by a fractional logit model as a robustness check, and regional disparities were assessed using Kruskal–Wallis and Mann–Whitney non-parametric tests. The results indicate that apple growers achieved the highest overall technical efficiency, followed by pear and cherry growers. The VRS estimates reveal substantially higher levels of pure technical efficiency, whereas the scale efficiency analysis suggests that a considerable proportion of technical inefficiency arises from farms operating below their optimal production scale. The second-stage analysis identifies family size, education, irrigation facilities, access to credit, and cold storage infrastructure as significant positive factors associated with farm-level technical efficiency, while significant regional disparities are observed across the Kashmir Valley. The robustness analysis confirms the consistency of the estimated relationships. These findings highlight that improving horticultural performance requires not only efficient farm-level resource management but also stronger institutional support, investments in irrigation and post-harvest infrastructure, improved access to rural credit, and region-specific development strategies. The study contributes to the literature by integrating crop-specific and pooled efficiency analyses with socioeconomic and regional assessments, providing policy-relevant evidence for promoting resource-efficient and sustainable horticultural production.