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


Igbinidu Osayande ,

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Volume 2 - June 2018 (06)


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.


Cost Efficiency, Maize production, smallholder farms


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