Construct the Efficiency of Contract Farmers and Non – Contract Farmers on Cocoa Production

This study determines the level of technical efficiency of cocoa production between contract farmers and non-contract farmers. Data used was primary data collected by using administered questionnaire, where probability sampling was used to obtain respondents and LIMDEP version 3 used to analyze the data. The result shows that contract farmers are technically efficient and obtain a mean of 57.6% and non-contract farmers where technically inefficient and obtain a mean 49.475%. Where only 15 (37.5%) and 24 (60%) of contract farmers and non-contract farmers respectively were technically inefficient in production; and only 25 (62.5%) and 16 (40%) of contract farmers and non-contract farmers respectively were technically efficient in production of cocoa. Based on the findings, the study recommend that the government should emphasize on contract farming in order to increase marginal productivity, marketing, provision of credits, extension services, and improvement of infrastructures.