This article examines production and transaction costs associated with government Green Scheme irrigation
project for small-scale high value crop farming in Etunda, north central Namibia. Transaction cost approach
was employed due to its efficiency merit at various stages of the crop value chain. The study revealed the
existence of considerable inefficiency in production due to high inputs costs, poor grower-trader contract
arrangements, inadequate marketing and processing facilities as well as information asymmetry and imperfect
competition in the value chain. Thus there is a need for productivity improvement which demands institutional
capacity building that intensifies research and development, improved technologies and productive assets,
specialist extension expertise, diversified credit services, improved entrepreneurial and managerial skills and
better crop diversification and specialisation. The study makes the general recommendation that producers
should significantly reduce their transaction costs within the chain, by means of vertical co-ordination and form
cooperatives based on internationally acceptable principles.