ECONOMIC ANALYSIS OF YAM PROCESSING INTO YAM FLOUR IN SAKI AGRO ECOLOGICAL ZONE OF OYO STATE, NIGERIA

Author(s):  
M. O. OGIERIAKHI ◽  
I. Y. UDEZI ◽  
C. P. OSAYI

The study examined the economic analysis of yam processing into yam flour in Saki Agro ecological Zone of Oyo State. It specifically described the profitability of yam processing; examined the technical efficiency of yam processors and determined the effect of the socio-economic characteristics on technical efficiency. Data were collected with the aid of structured questionnaire and analyzed using descriptive statistics, profitability and budgetary analysis as well as stochastic frontier model and Garrett scale. The study reveals that majority of the respondents were female (88%) with a mean age of 47. The result shows that the rate of return on investment was 12 percent. The mean technical efficiency of the processors was 85% indicating that the yam processors were relatively efficient in allocating their limited resources. Some observable variables relating to socioeconomic characteristics such as processing experience and sex of the respondents significantly explains the variation in technical efficiency. Factors such as high cost of yam tubers, poor weather condition and inadequate processing facilities are the major factors that hinder the processing activities in the study area. The study therefore recommends that government policies should be made to improve the provision of inputs such as yam tubers and capital equipment at affordable price.      

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Abebe Birara Dessie ◽  
Tadie Mirie Abate ◽  
Betelhem Tsedalu Adane ◽  
Tiru Tesfa ◽  
Shegaw Getu

Abstract Ethiopia is one of the east African countries which produce and exports various spices to other countries. Black cumin (Nigella sativa L.) is an important stiff annual flowering plant which mainly grows by producers for its seeds. An increasing demand of black cumin seed and oil in local, national and international market for medicinal, consumption and commercial purpose makes the best alternative crop for small holder farmers in Ethiopia. In spite of its importance, not much has been done to improve its production and productivity in Ethiopia. Therefore, this research was designed to examining efficiency variations and factors influencing technical inefficiency levels of producers on black cumin production in northwest Ethiopia. Primary data were collected using a semi-structured questionnaire administered on 188 black cumin producers selected using systematic random sampling technique. Moreover, various data analysis methods such as descriptive statistics and stochastic frontier model were used for analyzing the data. The empirical result obtained by applying maximum likelihood estimate of stochastic frontier model revealed that seed (p < 0.01) labor (p < 0.05), chemical (p < 0.01) and land (p < 0.05) were significant input variables in determining black cumin production. The mean technical efficiency level of black cumin producer was generally low, about 53.1%. The mean value of actual yield, potential yield and yield gap was 3.131, 5.832 and 2.701 quintals, respectively. Moreover, the result of stochastic frontier model together with the inefficiency parameters revealed that market price of black cumin (p < 0.01) and access of extension service (p < 0.1) were significant variables and positively influenced the efficiency levels of black cumin producers. Whereas age of producers (p < 0.05) and distance to farm plot (p < 0.01) negatively influenced the technical efficiency levels of black cumin producers. Therefore, the study recommends that adoption of latest agricultural technologies; development of institutions, agricultural extension services and infrastructure are advisable to improve the efficiency and commercial value of black cumin production.


Author(s):  
Anita Rosli ◽  
Alias Radam ◽  
Khalid Abdul Rahim ◽  
Amin Mahir Abdullah

This study aimed to estimate the technical efficiency among pepper (Piper nigrum. L) farmers in Sarawak, Malaysia, using Stochastic Frontier Analysis (SFA). SFA involves a one-step process that can estimate technical inefficacy factors simultaneously with the production frontier. 678 pepper farmers were involved in this study, and the data were collected from 2012 to 2013. The mean score for technical efficiency was 0.518, indicating that pepper farmers were not efficient. However, the inefficiency model showed that education level, membership in farmers’ association, full-time as a pepper farmer, attending courses and visiting sample farms were factors that significantly improved inefficiency. The major problem of pepper farming in Sarawak is poor agricultural practices where farmers do not fully utilize the available agricultural inputs to produce maximum output. Based on the findings, farmers must improve their knowledge and skills in pepper farming through agronomic education.


2019 ◽  
Vol 7 (1) ◽  
pp. 115
Author(s):  
Muhammad Aamir Shahzad ◽  
Amar Razzaq ◽  
Muhammad Aslam ◽  
Muhammad Faisal Gulzar ◽  
Muhammad Asad ur Rehman Naseer ◽  
...  

The wheat productivity in Punjab is less than the potential maximum due to imbalanced input use and farm management issues. Many studies have attemped to estimate technical efficiency of wheat crops using different techniques. However, most of them used limited datasets that focus on only a few districts. This study study uses a comprehensive dataset which is representive of Punjab province. We used farm-level panel survey data collected from 1581 farms in 17 districts of Punjab from 2005-06 to 2007-08. The technical efficiency of the wheat farms was analyzed using Stochastic Frontier Analysis (SFA) approach. Further, we identified the determinants of (in)efficiency using the same method. The results show that the mean technical efficiency of wheat farmers in Punjab is 84 percent indicating a considerable room for efficiency improvement. Further, the results indicate that technical efficiency could be improved by educating the younger farmers, building road infrastructure, and improving farmers’ access to essential inputs. The study supports the argument that wheat farmers are less technically efficient in Punjab, Pakistan.


2017 ◽  
Vol 9 (5) ◽  
pp. 226
Author(s):  
A. Aliyu ◽  
Ismail Abd Latif ◽  
Mad Nasir Shamsudin ◽  
Nolila Mohd Nawi

The main objective of the study was to figure out, identify and analyse the technical efficiency of rubber smallholders’ production in Negeri Sembilan, Malaysia. Multi-stage data collection procedures, comprising both purposive and random sampling techniques, were used. Using structured questionnaires, farm-level information with cross sectional data from five districts of Negeri Sembilan, were employed in the study. A parametric Stochastic Frontier Analysis (SFA), with a transcendental logarithmic (Translog) functional form, was used in the study. The descriptive statistics results revealed that, the mean rubber yield was 5465 kg while that of the seven inputs used include 1.2 ha, 602.7, 2.33, 363.6 kg, 13.0 lit, 13.2 man days and 2.47 respectively for farm size, task, farm tools, fertilizer, herbicides, labour and rubber clones.The inferential statistics showed that, the mean technical efficiency was found to be 0.73 with a standard deviation of 0.089. Thus, this translates that 27% accounted for technical inefficiency. Both the sigma square and gamma coefficients were found to be statistically significant at 1% level. The Log Likelihood Function (LLF) and the Log Rati (LR) test were found to be respectively 167.7 and 34.07. The results further revealed that, although none of the farms were found to be on the frontier, however, 9 farms were very near the frontier with efficiency score range between 0.90-0.99. And twenty (20) firms have range 0.80-0.90. Race, Tapping experience, household number and extension agent’s visits were found to be technically significant and are thus critical in determining technical efficiency of rubber smallholders in Negeri Sembilan, Malaysia.


2014 ◽  
Vol 11 (1) ◽  
pp. 35
Author(s):  
Muhammad Fauzan

<p><em>The board objective of study is to evaluate the profitability and technical efficiency of shallot farming in Bantul and Nganjuk regency. The specific objectives are to (1) Evaluate the profitability of shallot farmers in the study area and (2) Determine the levefl of technical efficiency of shallot farmers. The primary data used for the study obtained using structured questionnaire administered to 60 selected farmers. Gross margin, net farm income, gross ratio, operation ratio, return on capital invested, and stochastic frontier production function were used to analyze the data. The study showed that (1) shallot farming in Bantul and Nganjuk regency was profitable with net income Rp 20.903.711,00/ha and Rp 35.294.540,00/ha, (2) the distribution of the technical efficiency indices revealed that the most of the farmers were technically efficient with mean TE Index of 0.802 (Bantul) and 0,929 (Nganjuk), (3) the result of the inefficiency model showed that years of education (Bantul) and age (Nganjuk) significantly increased the farmers technical efficiency.     </em></p><p> </p><p><em>Tujuan utama penelitian ini adalah mengevaluasi profitabilitas dan efisiensi teknis usahatani bawang merah di Kabupaten Bantul dan Kabupaten Nganjuk. Secara spesifik, penelitian ini bertujuan untuk (1) mengetahui profitabilitas usahatani bawang merah di lokasi penelitian dan (2) mengetahui tingkat efisiensi teknis petani bawang merah. Penelitian ini mengggunakan data primer hasil survey pada 60 petani responden dengan menggunakan kuisioner yang telah dirancang sesuai dengan tujuan penelitian. Gross margin, net farm income, gross ratio, operation ratio, return on capital invested, dan fungsi produksi frontier stokastik digunakan dalam penelitian ini untuk menganalisis data. Hasil penelitian menunjukkan bahwa (1) usahatani bawang merah di Kaupaten Bantul dan Kabupaten Nganjuk menguntungkan untuk dijalankan dengan net income Rp 20.903.711,00/ha and Rp 35.294.540,00/ha, (2) distribusi tingkat efisiensi teknis menunjukkan bahwa mayoritas petani telah mencapai tingkat yang efisien dengan rata-rata TE Index 0,802 (Bantul) dan 0,929 (Nganjuk), (3) hasil analisis model in-efisiensi menunjukkan bahwa tingkat pendidikan (Bantul) and umur (Nganjuk) berpengaruh signifikan terhadap peningkatan efisiensi teknis petani.</em></p>


2017 ◽  
Vol 9 (4) ◽  
pp. 98
Author(s):  
Fakunle Olufemi Oyedokun ◽  
Zhou Leocadia

The intervention of government in the development of smallholder agriculture is still grappling and has not yielded the desired results, despite the huge investment from government. This has been a source of concern to government and policy makers. This paper sought to analyze the socio-demographic features of the smallholder maize farmers; profile the goals and aspirations of these farmers; and lastly, to analyze the technical efficiency of maize farmers. Qamata and Tyefu in the Transkei and Ciskei homelands, respectively were purposively chosen for the study. Descriptive statistics; Principal component analysis (PCA) and stochastic frontier analysis (SFA) were used in the analysis. The result shows, that majority (66%) of the farmers were males with an average range of 61 years old. On the other hand, the PCA indicated that there is a variation between predicted goals and aspiration among maize farmers. The SFA result showed that farmers were efficient. The mean technical efficiency estimates up to 100%, an indication that farmers are more efficient in the usage of factors of production at their disposal in the study area. This implies that smallholder maize farming is lucrative due to its profit-making potentials. Moreover, this is a clear indication that more income and wealth is generated thereby implying that it is strategic and pivotal in improving farmers’ livelihoods


2020 ◽  
Vol 2 (1) ◽  
pp. 37-42
Author(s):  
Maryam Nawaz ◽  
Dr. Shoaib Akhtar ◽  
Adnan Nazir ◽  
Muhammad Faisal

The purpose of the current study was to assess the allocative, technical, and economic efficiency of wheat crop produced in Punjab. Primary data were collected through a well-structured questionnaire. The economic efficiencies were estimated by the DEA technique using the farm level data gathered from 240 wheat growers of the Rajanpur district of Punjab, Pakistan. According to the results of the study the estimated efficiencies results show that the mean technical efficiency of the wheat crop is about 70%, the mean allocative efficiency is 74%, and the mean cost efficiency is 52%. The findings revealed that Pakistani wheat farms could minimize production costs by up to 30% to ensure the same level of production, using resources in optimal proportions and increasing technical efficiency. The findings also reveal that the current level of wheat production can be amplified by up to 30% by mollifying the technical efficiency of wheat crop. 


2021 ◽  
Vol 2 (3) ◽  
Author(s):  
F. O. Aminu ◽  
I. A. Ayinde

The study analysed the technical efficiency and technology gap ratio in cocoa production in Nigeria. A multistage sampling technique was used to select 390 cocoa farmers from three zones where cocoa is commercially grown in Nigeria. Separate stochastic frontier models were estimated for farmers in Kwara, Edo and Ondo States, along with a metafrontier model to obtain alternative estimates for the technical efficiencies of farmers in the different states. Subsequently, a Tobit model was used to access the factors influencing cocoa production in the study area. Results revealed that, the average technical efficiency level was 0.685 for the pooled sample, 0.506, 0.837 and 0.713 for Kwara, Edo and Ondo States respectively, suggesting that there is substantial scope to improve cocoa production in Nigeria. The mean MTR values of 0.506, 0.837 and 0.712 for Kwara, Edo and Ondo States respectively, implied that Edo State was more technically efficient than other states in the study area.  The mean technology gap ratio (TGR) value of 84.3% indicated that, on the average, the cocoa farmers in the study areas would have to close a gap of about 15.7% in order for them to be technically efficient. The study recommended that cocoa farmers in Edo and Ondo States could improve their technical efficiency through a better management using the available technologies and resources while intervention to raise technology that will help close the gap between the regional frontier curve and the global frontier curve through raising and distributing disease resistant and high yielding cocoa seedlings to the farmers should be adopted in Kwara State.


Author(s):  
A. H. Kara ◽  
M. N. Shamsudin ◽  
Z. Mohamed ◽  
I. B. Latiff ◽  
K. W. K. Seng

This study estimates technical efficiency and production risk of rice farms under Anchor Borrowers Programme (ABP) in Kebbi State, Nigeria. The study employed Stochastic Frontier Production (SFA) with flexible risk specifications to a sample of 231 rice producers surveyed in 2016 production season. The findings shows that seed, fertilizer, agrochemicals and labour inputs influenced rice output positively. The production technology characterizing rice farms in the study area exhibit increasing returns to scale. Fertilizer and agrochemicals are estimated to decrease variance of the value of output while seed and labour are estimated to increase the variance of the value of output. This implies that a risk-averse farmer will use more of fertilizer and agrochemicals and less of seed and labour than a risk neutral farmer. The mean technical efficiency estimates was 85.3 percent. Several characteristics of the farmers such as education, farming experience, extension contact, land cultivation technique and planting technique significantly decrease technical inefficiency of the farmers. The study concludes that, on the average 14.7 percent of potential output is lost due to technical inefficiency and production risk in inputs and recommends the use of best farm practice to produce rice efficiently. Policy option should also consider the incorporation of production risk in technical efficiency analysis if the inputs are non-neutral in risk.


2020 ◽  
Author(s):  
Surya Prasad Adhikari ◽  
Yuga Nath Ghimire ◽  
Krishna Prasad Timsina ◽  
Samaya Gairhe

Abstract The national average potato productivity is far below as compared to other neighbouring countries due to several production constraints. Variety and irrigation are the important factors to increase production. The aim of this study is to find the technical efficiency of potato production and to estimate the impact of variety type and irrigation on technical efficiency. A multistage random sampling procedure was employed to select 300 potato farmers from three districts of Nepal. The study used a stochastic frontier production function model to find the production elasticity coefficients of inputs, determinants of efficiency, and technical efficiency of potato farmers. Results showed that variety type and irrigation have a significant positive impact on the technical efficiency of potato production. Nepalese improved varieties adopter farmers were more efficient (73%) than Indian (66%) and local (59%) potato varieties. Likewise, Irrigated potato farming has higher efficiency (71%) than rainfed potato (61%) farming. The mean technical efficiency value of potato farmers was 69 per cent and farmers can increase it with better use of available resources. It is suggested that use of improved potato varieties and irrigation application along with proper amounts of inputs used help to improve technical efficiency of potato farmers.


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