Technical, allocative and economic efficiency of cassava producers in oyo state of Nigeria.
Journal Title: Scientia Agriculturae - Year 2015, Vol 11, Issue 2
Abstract
The study evaluates technical, allocative and economic analysis of cassava production in Oyo State of Nigeria. Data were collected by the use of multistage random sampling with the help of well-structured questionnaire and interview schedule. Using farm level data, the study estimates a stochastic frontier production and cost functions model, which was used to predict the farm level technical and economic efficiencies. The study also used descriptive statistics and multiple regression analysis to analyze the data. The result of the socio-economic characteristics shows that most of the respondents were in their active age with a mean of 47.3 years. The mean year of education was 7.2 years which is an indication that majority of them had primary education. Majority of the respondents has been into cassava production for a longer period with the mean year of farming experience of 21.3 years. The result of the Cobb-Douglas stochastic frontier production function revealed that the relationship between output and cassava cutting material and farm size were statistically significant and positive in the study area. . The return to scale (RTS) was 0.54 in the study area. This indicates a positive decreasing return to scale and that cassava production was in stage II of the production region where resources and production were believed to be efficient. Predicted technical efficiency and economic efficiency are the basis for estimating allocative efficiency of the farms. The mean technical efficiency for the study area was 0.542 while the mean allocative efficiency was 0.953. The combined effect of technical and allocative factors shows that the average economic efficiency level for the farmers was 0.515. From the results, it can be concluded that cassava-based farmers in Oyo State have higher ability to maximize profit (AE) than to produce larger quantities of output from the same quantities of measurable inputs (TE).
Authors and Affiliations
l. T Ogunniyi
Keywords
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- EP ID EP117171
- DOI 10.15192/PSCP.SA.2015.11.2.5359
- Views 106
- Downloads 0
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