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Cost efficiency of cassava production in Nigeria

Cost efficiency of cassava production in Nigeria

ABSTRACT
The research study Cost efficiency of cassava production in Nigeria a study of Abia State, Nigeria. Information was gathered from 105 farmers and analyzed to describe the farming systems and the socio-economic characteristics of cassava farmers, estimate the profitability of cassava production, analyze the factors that affect profitability of cassava, estimate technical and cost efficiency of cassava production, identify and estimate the socio-economic characteristics of the farmers that affect their technical and economic efficiency, identify and analyze the factors that influence the rate of technology adoption and the  intensity of use after adoption and identify the constraints to increased cassava production in the study area. Multi-stage random sampling technique was used to select the local government areas, communities, villages and the farmers. The primary data were analyzed using both descriptive and inferential statistics such as means, percentages, frequency distribution tables, stochastic frontier production function (cobb-douglas), inefficiency model, tobit model, normalized profit function and net farm income/budgetary analytical tools. It was found that majorities (85.7%) of the farmers are educated and labour is the most expensive resource used. The result further showed that about 11,900kg (11.9 tons) of cassava tubers and 900kg (0.9 tons) of cassava stems were realized from 1.0 hectare of land with total revenue of N589, 300. The gross margin was N448, 225.50 per hectare, while the net-return was N446, 025.50. The benefit cost ratio was N4.113 which indicates that cassava production in the study area is profitable. The study further revealed that inefficiency was present in the production activities of the farmers in the study area; hence they did not achieve maximum technical and economic efficiency. However the farmers’ level of technical efficiency (79%) was higher than their economic efficiency (61%). The use of tobit model estimate reveals that farm income, age of the respondent farmers and extension visits are all important variables in explaining the adoption behaviour of the farmers. The identified problems include, high labour cost, scarcity of farm inputs, poor extension services, low income, illiteracy and low productivity. The study therefore recommended extension of credit facilities to the farmers, timely supply of inputs at cost effective prices, farmers’ education, more efficient and effective extension services, introduction and use of tractor technology and encouraging farmers to reshuffle their expenditure pattern in order to allocate more income for re-investment in cassava production.

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