Total factor productivity and profit growth in cotton production in Benin, West Africa

Understanding the sources of growth in total factor productivity (TFP) and profit is crucial to guide agricultural policy decisions. This study examines TFP and profit growth in cotton production in Benin between 2000 and 2018. Using panel data from 482 cotton producers, a parametric translog cost frontier approach was applied to analyze productivity and profitability dynamics. Results indicate that technical efficiency gains and technological progress increased TFP by 1.26% per year, while scale effects negatively affected productivity, suggesting underexploited economies of scale. Profit growth averaged 1.65% per year, driven by higher cotton prices and output, whereas rising input costs reduced profits. The study recommends strengthening producer capacities through training, promoting technological innovations such as mechanization and pest-resistant varieties, and implementing incentive-compatible price policies to support optimal input use and enhance both productivity and profitability.