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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