PROFIT EFFICIENCY OF SMALLHOLDER COCOYAM-BASED FARMERS AND ITS DETERMINANTS IN OSUN STATE, NIGERIA
Keywords:Cobb-Douglas function, Profit efficiency, Resource-use, Smallholder farmers, Cocoyam-based farming system
Cocoyam belongs to the indispensable food category that supplies calorie in the diet of the Nigerian populace. However, researches on its nutrition and economic values are scarce leading to low production and under consumption among the populace. Against the backdrop of the great potential of the Nigerian agriculture in cocoyam production, and the need for land use efficiency, sustainable development, poverty alleviation, attainment of food –security/ self-sufficiency and adequate resource allocation to the production of the crop, this study examined farm level profit efficiency and its determinants for smallholder cocoyam-based farmers in Osun State, South-west Nigeria, using Cobb-Douglas stochastic profit function. Multistage and random sampling techniques were used to select 180 small-holder cocoyam farmers during the 2014 growing season and data were collected from them on their socio-economic and production characteristics. Maximum likelihood estimates of the specified models revealed an average profit efficiency of 44.88 percent which indicated that the profit of the farmers can be increased by 55 percent with the same production cost. The study also found that the level of education of the farmers, access to credit, farming experience, household size, access to extension services, and marital status are factors affecting farm-level profit efficiency in the use of resources. Farm-level policies aimed at promoting the farmers education, access to credit, access to extension services and marital status are recommended for improved profit efficiency.
Akpan, S. B., Patrick, I. V., Udoka, S. J. 2012 “Stochastic Profit Efficiency of Homestead based Cassava Farmers in Southern Nigeria”, Asian Journal of Agriculture and Rural Development, Vol. 2, No. 3, pp. 498 - 505.
Ajekigbe, J. M. 2007. Financial Intermediation for Unlocking Potentials in Nigeria. Power Point Presentation. First Bank of Nigeria.
Awoniyi, O. A., Bolarin T. O. 2007. “Production Efficiency in Yam based enterprise in Ekiti State, Nigeria”, Journal of Central European Agriculture, Vol. 4, pp. 626 – 635.
Awoyinka, Y. A. 2009. “Effect of Presidential Initiatives on Cassava Production Efficiency in Oyo State –Nigeria”, Ozean Journal of Applied Sciences, Vol. 2(2), pp. 185-193.
Aye, G.C., Oboh, V.U. 2006. “Resource Use Efficiency in Rice Production in Benue State, Nigeria: Implications for Food Security and Poverty Alleviation.” In: S.O. Adepoju and P.B. Okuneye (Eds.). Technology and Agricultural Development in Nigeria. Proceedings of 20th Annual National Conference of Farm Management Association of Nigeria, FRIN, Jos, Nigeria. Pp.11-16.
Battese, G.E. 1992. Frontier production functions and technical efficiency: A survey of empirical applications in agricultural economics. Agric. Economics. 7: 185-208.
Battese, G.E., G.S. Corra 1977.Estimation of a Production Frontier Model: With Application to the Pastoral Zone of Eastern Australia. Australia Journal of Agricultural Economics,21: 169-179.
Bravo-Ureta, B.E., Pinheiro, A.E. 1993. “Efficiency analysis of developing country agriculture: A review of the frontier function literature.” Agriculture and Resource Economics Review. 22: 88-101.
Bravo-Ureta, B. E., Pinheiro, E. A. 1997. Technical, Economic and Allocative Efficiency in Peasant Farming: Evidence from the Dominican Republic. The Developing Economics. 35 (1): 48-67.
Coelli, T. J. 1994. A Guide to FRONTIER version 4.1c: A Computer programme for Stochastic Frontier production and Cost Function Estimation": Working paper 96/07, Centre for Efficiency and Productivity Analysis Dept. of Econometrics, University of New England, Armidale,Australia.
Echebiri, R. N`. 2004. “Socio-Economic factors and resource allocation in cocoyam production in Abia State, Nigeria: A case study.” Journal of Sustainable Tropical Agricultural Research. 9: 69-73.
Eze, C.C., Okorji, E.C. 2003. Cocoyam production by women farmers under improved and local technologies in Imo State, Nigeria. African Journal of Science 5(1):113-116.
FAO (2007).FAOSTAT, Statistics Division of the Food and Agriculture Organization.
Farrell, M. J. 1957. The measurement of productivity efficiency. Journal of Royal Statistical Society Series. 120:253-290.
Knipscheer, A., Wilson, U. 2000. Importance of cocoyam production in Nigeria. Proceedings of a National workshop on cocoyam, Umudike Nigeria.
Meeusen, W., Van den Broeck 1977. “Efficiency estimates from Cobb-Douglas production function with composed errors.” International Economics Review. 18 (2): 435 – 444.
National Population Commission (NPC) 2006. National Population and Housing census statistics in Nigeria.
Nwachukwu, T. N., Onyenweaku, C. 2007. “Economic of Fadama Telfairia production in Imo State Nigeria. A translog profit function Approach”, Munich personal RePEc Archive (MPRA). Paper No. 123469.
Ogundari, K., Ojo, S. O. 2007. “Economic efficiency of small scale food crop production in Nigeria: A stochastic frontier Approach”, Journal of Social Science, Vol. 14, pp. 123 – 130.
Ogundari, K. 2006. “Determinants of profit efficiency among small scale rice farmers in Nigeria”, Paper presented at the International Association of Agricultural Economists conference, Gold Coast, Australia.
Ogunniyi, L. T. 2008. “Profit efficiency among cocoyam producers in Osun State, Nigeria.” International Journal of Agricultural Economics and Rural Development, Vol. 1, pp. 38 – 46.
Ojiako, I.A, Asumugha, G.N. Ezedinma, C., N.E. Uzokwe 2007. Analysis of Production Trends in the Major Root and Tuber Crops in Nigeria , 1961-2005. Res in Crops 8(2):371-380.
Okeke, J. E. 1989. “Cassava production in Nigeria, Food Crops production, utilization and nutrition”, Proceedings of a course held at University of Nigeria, Nsuka.
Oladeebo, J. O., Oluwaranti, A. S. (2012). “Profit efficiency among cassava producers: Empirical evidence from South western Nigeria”, Journal of Agricultural Economics and Development, Vol. 1(2), pp. 46-52.
Olaniyan, G.O., Manyoung, V.M. and B.Oyewole (2001).The dynamics of the root and Tuber Cropping Systems in the Middle belt of Nigeria.In Akoroda, M.O and Ngeve, J.M (eds) Proceedings of the 7th Triennial Symposium of the International Society for Tropical Root Crops (ISTRC), pp25-27.
Osun State Government Agricultural Development (OSSADEP): Osun State, available at http//www.osunstate.gov.ng/osun_profile.asp (2004).
Oyekale, A. S. 2007. “Intensive land use and efficiency of food production in south western Nigeria”, Agric. J. Vol. 2, pp. 172-179.
Thiam, A., Bravo-Ureta, B. E., Teodoro, E. R. 2001. Technical efficiency in developing country agriculture: A meta-analysis. Agricultural Economics. 25: 235-243.
Udoh, E. J., Akintola, J. O. 2001. “Measurement of technical efficiency of crop farms in southeastern region of Nigeria”, Nigerian J. Econ. Soc. Stud., Vol. 43: pp. 93-104.
Udoh, E. J., Sunday B. A. 2007. “Measuring Technical efficiency of waterleaf (Talinum triangulare) production in Akwa Ibom State, Nigeria”, American – Eurasian J. Agric. Environ. Sci., Vol. 2, pp. 518 – 522.
Udoh, E. J. 2005. “Technical inefficiency in vegetable farms of humid region. An analysis of dry season farming by urban women in South - South Zone, Nigeria”, J. Agric. Soc. Sci., Vol. 1, pp. 80 – 85.
Wongnaa, C. A., Ofori, D. 2012. Resource-use Efficiency in Cashew Production in Wenchi Municipality,Ghana. Agris on-line Papers in Economics and Informatics, Institute of Entrepreneurship and Enterprise Development, Kumasi Polytechnic, Ghana. Vol 4(2).
World Bank 2008. “Agriculture for Development”. World Development Report 2008 Washington: World Bank..