Cost Efficiency of Maize Production in Ovia North East Area of Edo State, Nigeria

Author(s)

Igbinidu Osayande ,

Download Full PDF Pages: 01-06 | Views: 393 | Downloads: 139 | DOI: 10.5281/zenodo.2575944

Volume 2 - June 2018 (06)

Abstract

This study examined empirically cost efficiency production in Ovia North East Local Government Area of Edo State using farm-level data with a view to analyse the socio-economic characteristics of the respondents, estimate the efficiency of resource allocation of yam farmers in the study area. A two-stage sampling technique was used to collect data from 100 maize farmers with the use of a well-structured questionnaire. Descriptive statistics such as frequency distribution and percentages were used to analysed objective 1) while Cobb-Douglas Stochastic Frontier Cost Function as used to analyse objectives 2). The study revealed that majority (76%) of the maize farmers were within the age brackets of 31 – 60 years and were males whose primary occupation was farming, (67%) and most of them are small-scale farmers. The average cost efficiency estimates were found to be 1.09 implying that the farmers were cost inefficient as they were spending 9% above the minimum cost of production. All the cost items included in the  cost function affected the cost efficiency positively and were significant at 5% level of probability except the quantity of maize which was not significant at any rate, sex, level of education and household size were captured as factors determining cost efficiency in the study area. The cost efficiency can be improved by providing input subsidies and enhancing production technology to enable them to enjoy the benefits of economies of scale.

Keywords

Cost Efficiency, Maize production, smallholder farms

References

i.        Major Goodman, M. (1979). Maize, North Carolina State University, Raleigh NC USA. Journal Series of the North Carolina Agricultural Experimental Station, Paper No. 4439, Pp. 37 – 39.

ii.      Battese, G.E. and Tessema, F.A. (1993). “Estimation of Stochastic Frontier Production Functions with Time-Varying parameters and Technical Efficiencies using panel data from India village” agricultural Economics vol. 9:313 – 333.

iii.    Simmond, N. (1979). Maize, Longman Group Inc., Limited USA.

iv.     Food and Agriculture Organisation, 92009) Statistical Division, Maize, Rice and Wheat Area harvested, production quantity and yield.

v.       Ojo, S.O. (2000). Factor Productivity in Maize Production in Ondo State, Nigeria, Applied Tropical Agriculture vol.15 Pp 57 – 65.

vi.     Maurice, D.C. (2004). Resource Productivity in Cereal Crops production among Fadama Farmers in Adamawa State. M.Sc. Thesis, Unpublished. University of Maiduguri, Nigeria.

vii.   National Population Commission, (2006). Nigeria Population Census Figure. Abuja, national Population Commission.

viii. Ajibefun, I.A., Battese, G.E. and Kada, R. (2002). Technical Efficiency. Technological change and productivity of Hired and Family labour in the Japanese Rice Industry” Empirical Economic Letters, 1(1), 21 – 31.

ix.     Bravo-Ureta, Boris, E. and Antonio Pinheiro, E. (1997). Technical Economic and Allocative Efficiency in peasant farming: Evidence from the Dominican Republic. The Development Economics 35 – 12 pp 48 – 67 (1997).

x.       Quinsumbing, A.R. and Meinzen Dick, R. (2011). Gender in Agriculture; closing the knowledge gap, xvi, 444.

Cite this Article: