A Stochastic Frontier Analysis of the Performance of Livestock in the North-Eastern Cape Communal Rangelands, South Africa

Abstract

This paper examined the technical efficiency of livestock in Eastern Cape Province, South Africa, to improve the understanding of the performance of livestock production of rural households in the communal rangelands. Surveys from 120 households were used to estimate a stochastic frontier model to assess livestock production's technical efficiency (TE) amongst households in a communal production environment where rangelands are the primary source of fodder. The estimated coefficients of the stochastic frontier model indicated that livestock units (LSU) and costs of additional feed supplements positively influenced livestock output per household. Management practices such as livestock kraaling and livestock herding influenced TE positively. An average technical efficiency score of 0.79 was estimated among households, suggesting that an improvement in efficiency could be achieved if proper interventions were employed. These interventions may include programmes such as the Extended Public Work Programmes to provide livestock herding support, gender-sensitive strategies that support the inclusion of women in livestock production, and other labour inputs related to animal husbandry. Lastly, this study provided essential information in understanding livestock production and informed policy about possible interventions that could potentially improve livestock production in rangelands.