IDEAS home Printed from https://ideas.repec.org/a/ags/roaaec/308405.html
   My bibliography  Save this article

Profitability And Efficiency Of Bambara Groundnut Production In Nigeria: A Case Study

Author

Listed:
  • ONUCHE, Unekwu
  • IBITOYE, Stephen Jimoh
  • ANTHONY, Thomas

Abstract

Research Background: Although it is a highly nutritious and climate resistant crop, bambara groundnut is described as a neglected and under-utilized crop in most countries including Nigeria where its production is in the hands of some smallholder farmers. Empirical facts on the profitability as well as the technical efficiency of bambara groundnut production in Kogi state, Nigeria, where it serves as an important source of food and income, are unknown. These facts, when known, can draw the attention of stakeholders to intervention areas. Purpose of the article: The research was undertaken to provide factual data through empirical analyses on the cost, returns and technical efficiency of smallholder bambara groundnut farmers in the area, in to order elicit interest in the neglected crop. Such attention may aid in the expansion of the crop’s production through interventions in identified areas of concern. Methods: A five-stage sampling technique was employed in the random selection of 120 farmers for questionnaire administration in order to obtain the requisite data. Data on cost and returns were subjected to Gross Margin and Net Return on Investment analyses while the Cobb-Douglas Stochastic Frontier Production Function was employed in analysing technical efficiency. Findings and value added: Producers of bambara groundnut in the area are small scale farmers who are old, poorly educated and have large families. Cost and returns analysis showed that labour had the highest percentage of Total Variable Cost (78.00%). The venture, with a gross margin of -11,601.87 Nigerian Naira (-60.31 USD) and Net Returns on Investment of 0.79, is unprofitable. Experience and education affect the moderately high technical efficiency level which on the average is 71.2%. Bambara groundnut production in the area can be made profitable through labour cost reduction and improvement in average efficiency level by 28.8%. The provision of machinery to help reduce labour cost, in addition to special policy attention that will enhance improvements in education and extension services will reduce inefficiency and improve profitability.

Suggested Citation

  • ONUCHE, Unekwu & IBITOYE, Stephen Jimoh & ANTHONY, Thomas, 2020. "Profitability And Efficiency Of Bambara Groundnut Production In Nigeria: A Case Study," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 23(2), October.
    • Handle: RePEc:ags:roaaec:308405
    DOI: 10.22004/ag.econ.308405
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/308405/files/RAAE_2_2020_Onuche_et_al.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.308405?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    2. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    3. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    4. Nin, Alejandro & Arndt, Channing & Preckel, Paul V., 2003. "Is agricultural productivity in developing countries really shrinking? New evidence using a modified nonparametric approach," Journal of Development Economics, Elsevier, vol. 71(2), pages 395-415, August.
    5. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 1-27, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nin Pratt, Alejandro & Yu, Bingxin, 2008. "An updated look at the recovery of agricultural productivity in Sub-Saharan Africa:," IFPRI discussion papers 787, International Food Policy Research Institute (IFPRI).
    2. Mounir Belloumi & Mohamed Salah Matoussi, 2008. "Measuring Agricultural Productivity Growth in MENA Countries," Working Papers 416, Economic Research Forum, revised 06 Jan 2008.
    3. Yu, Bingxin & Nin Pratt, Alejandro, 2011. "Agricultural Productivity and Policies in Sub-Saharan Africa," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 105400, Agricultural and Applied Economics Association.
    4. Tomas Baležentis, 2014. "Total factor productivity in the Lithuanian family farms after accession to the EU: application of the bias-corrected Malmquist indices," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 731-746, November.
    5. Shilpa Chaudhary, 2012. "Trends in Total Factor Productivity in Indian Agriculture: State-level Evidence using non-parametric Sequential Malmquist Index," Working papers 215, Centre for Development Economics, Delhi School of Economics.
    6. Gong, Binlei, 2020. "Agricultural productivity convergence in China," China Economic Review, Elsevier, vol. 60(C).
    7. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    8. Christian Stetter & Johannes Sauer, 2022. "Greenhouse Gas Emissions and Eco-Performance at Farm Level: A Parametric Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 617-647, March.
    9. Zuniga Gonzalez, Carlos Alberto, 2009. "Technical efficiency of organic fertilizer in small farms of Nicaragua: 1998-2005," MPRA Paper 49352, University Library of Munich, Germany, revised 24 Sep 2010.
    10. Mohammed, Rezgar & Saghaian, Sayed, 2014. "Technical Efficiency Estimation of Rice Production in South Korea," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162231, Southern Agricultural Economics Association.
    11. Kangile, Rajabu Joseph, 2015. "Efficiency In Production By Smallholder Rice Farmers Under Cooperative Irrigation Schemes In Pwani And Morogoro Regions, Tanzania," Research Theses 265681, Collaborative Masters Program in Agricultural and Applied Economics.
    12. Teerawat Charoenrat & Charles Harvie, 2012. "Technical Efficiency of Thai Manufacturing SMEs: a Comparative Study of North-eastern Provinces," Economics Working Papers wp12-03, School of Economics, University of Wollongong, NSW, Australia.
    13. Majiwa, Eucabeth Bosibori Opande & Lee, Boon & Wilson, Clevo, 2015. "Multi-lateral multi-output measurement of productivity: the case of African agriculture," 2015 Conference, August 9-14, 2015, Milan, Italy 212769, International Association of Agricultural Economists.
    14. Brown, Colin G. & Kai, Chen, 1999. "Land reform, household specialisation and rural development in China," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123790, Australian Agricultural and Resource Economics Society.
    15. Sethi, Amarjit Singh, 2016. "Sources of Growth in India: Evidence from Punjab and Haryana," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 5(1), pages 15-34.
    16. Puig-Junoy, Jaume & Argiles, Josep M., 2004. "The influence of management accounting use on farm inefficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(2), pages 1-20, August.
    17. Qinqin Fan & Tianyuan Mu & Wei Jia, 2021. "Analysis on the Trend and Factors of Total Factor Productivity of Agricultural Export Enterprises in China," Sustainability, MDPI, vol. 13(12), pages 1-14, June.
    18. Mirza, Faisal Mehmood & Mushtaq, Iqra & Ullah, Kafait, 2017. "Assessing the efficiency dynamics of post reforms electric distribution utilities in Pakistan," Utilities Policy, Elsevier, vol. 47(C), pages 18-28.
    19. Guillermo Vuletin, 2008. "What is the Size of the Pie? Measuring the Informal Economy in Latin America and the Caribbean," Money Affairs, CEMLA, vol. 0(2), pages 161-191, July-Dece.
    20. Suárez-Alemán, Ancor & Morales Sarriera, Javier & Serebrisky, Tomás & Trujillo, Lourdes, 2016. "When it comes to container port efficiency, are all developing regions equal?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 86(C), pages 56-77.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:roaaec:308405. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/feuagsk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.