Cost of Production and Resource “ Use Efficiency among Small Scale Cassava Farmers in Igbo Etche Rivers State, Nigeria

Abstract

This study focused on cost of production and resource use efficiency among small scale cassava farmers in Igbo Etche in Rivers State, Nigeria.  A total of 102 questionnaires were returned for data analysis using descriptive statistics, stochastic cost and production function models.  The results showed high cost of hired labour, land preparation, lack of high yielding varieties, as farmers major challenges. About 73.86% of total cost of cassava production was labour cost.  The coefficients of costs of hired labour, planting and cassava cuttings were negative, significant between 1%-10%. Costs of fertilizers, pesticides and purchasing farmland were positive, statistically significant between 1-10%.  All variables used in stochastic production function were statistically significant at 1%.  If fertilizer input was increased by 10%, output will increase by 29.49%, while cost of hired labour, if reduced by 10%, will reduce output by 13%.  The variations experienced in cost and production output were due to differences in farmers cost and technical inefficiency. All variables were inefficiently utilized, while farm size, hired labour, fertilizers and cuttings were underutilized; pesticides were over utilized.  Therefore, opportunity exists to improve cassava output by 21.44% if resources are used efficiently.  Consequently, small scale farmers in the study area should be prudent in managing their costs and endeavour to increase their efficiency in resource use.