An analysis of the efficiency of cassava production in Imo State South-East, Nigeria (a stochastic frontier approach)

Abstract

The study analyzed the efficiency of cassava farmers in Imo State, Nigeria. It analyzed the profitability and allocative efficiencies of cassava farmers in Imo state. Sixty (60) cassava farmers were selected through multistage sampling technique and administered with validated questionnaire. Data obtained were analyzed using descriptive statistics such as mean, frequency distribution and percentages. Stochastic cost and production frontier were used to estimate allocative efficiency and its determinants. The Profitability index of 53.1% showed that the venture is profitable. The result of technical and cost efficiencies revealed that the farmers operate in stage three of the classical production function and thus increased use of land, labour, fertilizer and farm implement should be discouraged since the factors are either misallocated or over utilized leading to increased cost inefficiency. The estimate of the sources of allocative efficiency revealed that age, farm size, level of education, farming experience, extension contact, credit access, co-operative society membership, household size, gender are all important factors dictating the allocative efficiency. The study concludes that most farmland in the area are  not fertile due to intensive cultivation over time hence other factors such as labour hired, fertilizer and farm implements are ineffective in increasing yield to justify their additional utilization. Unavailability of fertile land, inadequate supply of subsidized inputs, unavailable infrastructure facilities, insufficient finance, high cost of labour are major problems limiting efficient production of the crop. The study recommended that cassava farmers should be encouraged to join cooperative societies and pool their resources together for large scale farming in order to ensure allocatively efficient farming.