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

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



Ettah O. I., Kuye O.O.



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. 



10.22161/ijeab/2.1.28



http://ijeab.com/upload_document/issue_files/28%20IJEAB-JAN-2017-1-Analysis%20and%20Determinants%20of%20Profit%20Efficiency%20of%20Cassava%20Farmers.pdf



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