Analysis and Determinants of Profit Efficiency of Cassava Farmers in Cross River State, Nigeria

Ettah O. I. • Kuye O. O.

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Abstract

A study on the analysis and determinants of profit efficiency of cassava farmers in Cross River State, Nigeria was carried out using the stochastic frontier profit function of Cobb-Douglas functional form. Data for the study were collected from primary sources with the aid of a set of structured and pre-tested questionnaires. For the determinants of profit efficiency, the minimum and maximum profit efficiency was 0.14 and 0.91 respectively with mean profit efficiency of 0.65. The mean profit efficiency implies that farmers were able to obtain 65% of their potential profit from a unit mix of inputs. In other words, about 35% of the profit is lost to inefficiency of management. Thus in the short run, there is a scope for increasing profit from cassava production by 35%. Age (0.37), education (0.67) and household size (0.58) had positive impact on profit inefficiency. The analysis of profit inefficiency effect showed a significant gamma (γ = 0.86). This implies that 86% deviation from maximum profit obtainable was as a result of inefficiency of the farmers rather than random error or variability. The signs and significance of the estimated coefficients in the inefficiency model have important implication on profit efficiency of the farmers. It is recommended that farmers should be encouraged to invest in cassava production for its profitability and economic value, inputs should be made available and at affordable prices especially improved varieties of cassava cuttings and cassava farmers should be encouraged to receive training on proper agronomic practices and USAge of inputs to enhance profit efficiency of input use.

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Journal

International Journal of Environment, Agriculture and Biotechnology

The International Journal of Environment, Agriculture and Biotechnology (IJEAB) is an internation... see more