A comparative analysis of technical efficiency and profitability of agribusiness and non-agribusiness enterprises in eastern DRC

The purpose of this study was to determine whether agribusiness could be competitive compared to non-agribusiness employment opportunities in terms of technical efficiency and profitability. We used data collected on all seven operating cassava community processing centers (CCPCs) and 150 comparable...

Full description

Bibliographic Details
Main Authors: Nyamuhirwa, D.A., Awotide, B.A., Kusinza, D.B., Bishikwabo, K., Mignouna, J., Bamba, Z., Dontsop Nguezet, Paul M.
Format: Journal Article
Language:Inglés
Published: MDPI 2022
Subjects:
Online Access:https://hdl.handle.net/10568/121880
_version_ 1855536923408334848
author Nyamuhirwa, D.A.
Awotide, B.A.
Kusinza, D.B.
Bishikwabo, K.
Mignouna, J.
Bamba, Z.
Dontsop Nguezet, Paul M.
author_browse Awotide, B.A.
Bamba, Z.
Bishikwabo, K.
Dontsop Nguezet, Paul M.
Kusinza, D.B.
Mignouna, J.
Nyamuhirwa, D.A.
author_facet Nyamuhirwa, D.A.
Awotide, B.A.
Kusinza, D.B.
Bishikwabo, K.
Mignouna, J.
Bamba, Z.
Dontsop Nguezet, Paul M.
author_sort Nyamuhirwa, D.A.
collection Repository of Agricultural Research Outputs (CGSpace)
description The purpose of this study was to determine whether agribusiness could be competitive compared to non-agribusiness employment opportunities in terms of technical efficiency and profitability. We used data collected on all seven operating cassava community processing centers (CCPCs) and 150 comparable non-agribusiness enterprises in South Kivu province. A Data Envelopment Analysis (DEA), as well as cost–benefit ratios and net monthly revenue, were used to examine technical efficiency and profitability. Our results showed that agribusiness was more competitive than non-agribusiness in terms of technical efficiency and profitability. The cost–benefit ratio shows that every dollar invested in agribusiness earns investors US $2.8, while it earns investors in non-agribusiness US $2.1. Moreover, technical efficiency increases significantly with agribusiness. These results show that agribusiness can compete with other non-agribusiness activities, and it remains a solution to youth unemployment in the region.
format Journal Article
id CGSpace121880
institution CGIAR Consortium
language Inglés
publishDate 2022
publishDateRange 2022
publishDateSort 2022
publisher MDPI
publisherStr MDPI
record_format dspace
spelling CGSpace1218802025-12-08T10:29:22Z A comparative analysis of technical efficiency and profitability of agribusiness and non-agribusiness enterprises in eastern DRC Nyamuhirwa, D.A. Awotide, B.A. Kusinza, D.B. Bishikwabo, K. Mignouna, J. Bamba, Z. Dontsop Nguezet, Paul M. agribusiness cassava processing value chain The purpose of this study was to determine whether agribusiness could be competitive compared to non-agribusiness employment opportunities in terms of technical efficiency and profitability. We used data collected on all seven operating cassava community processing centers (CCPCs) and 150 comparable non-agribusiness enterprises in South Kivu province. A Data Envelopment Analysis (DEA), as well as cost–benefit ratios and net monthly revenue, were used to examine technical efficiency and profitability. Our results showed that agribusiness was more competitive than non-agribusiness in terms of technical efficiency and profitability. The cost–benefit ratio shows that every dollar invested in agribusiness earns investors US $2.8, while it earns investors in non-agribusiness US $2.1. Moreover, technical efficiency increases significantly with agribusiness. These results show that agribusiness can compete with other non-agribusiness activities, and it remains a solution to youth unemployment in the region. 2022 2022-09-14T09:52:57Z 2022-09-14T09:52:57Z Journal Article https://hdl.handle.net/10568/121880 en Open Access application/pdf MDPI Nyamuhirwa, D.A., Awotide, B.A., Kusinza, D.B., Bishikwabo, V.K., Mignouna, J., Bamba, Z. & Dontsop Nguezet, P.M. (2022). A comparative analysis of technical efficiency and profitability of agribusiness and non-agribusiness enterprises in eastern DRC. Sustainability, 14(14): 8384, 1-17.
spellingShingle agribusiness
cassava
processing
value chain
Nyamuhirwa, D.A.
Awotide, B.A.
Kusinza, D.B.
Bishikwabo, K.
Mignouna, J.
Bamba, Z.
Dontsop Nguezet, Paul M.
A comparative analysis of technical efficiency and profitability of agribusiness and non-agribusiness enterprises in eastern DRC
title A comparative analysis of technical efficiency and profitability of agribusiness and non-agribusiness enterprises in eastern DRC
title_full A comparative analysis of technical efficiency and profitability of agribusiness and non-agribusiness enterprises in eastern DRC
title_fullStr A comparative analysis of technical efficiency and profitability of agribusiness and non-agribusiness enterprises in eastern DRC
title_full_unstemmed A comparative analysis of technical efficiency and profitability of agribusiness and non-agribusiness enterprises in eastern DRC
title_short A comparative analysis of technical efficiency and profitability of agribusiness and non-agribusiness enterprises in eastern DRC
title_sort comparative analysis of technical efficiency and profitability of agribusiness and non agribusiness enterprises in eastern drc
topic agribusiness
cassava
processing
value chain
url https://hdl.handle.net/10568/121880
work_keys_str_mv AT nyamuhirwada acomparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT awotideba acomparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT kusinzadb acomparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT bishikwabok acomparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT mignounaj acomparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT bambaz acomparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT dontsopnguezetpaulm acomparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT nyamuhirwada comparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT awotideba comparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT kusinzadb comparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT bishikwabok comparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT mignounaj comparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT bambaz comparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc
AT dontsopnguezetpaulm comparativeanalysisoftechnicalefficiencyandprofitabilityofagribusinessandnonagribusinessenterprisesineasterndrc