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Economic Efficiency Of Fadama Telfairia Production In Imo State Nigeria: A Translog Profit Function Approach

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  • Nwachukwu, Ifeanyi Ndubuto
  • Onyenweaku, Chris/E

Abstract

The study delved into economic efficiency analysis of Fadama Telfairia farmers in Imo State, Nigeria. Specifically, it identified the production systems; estimated the economic efficiency and their determinants. A multistage random sampling technique was adopted in the selection of 40 Fadama Telfairia farmers from each of the three agricultural zones of the State. A well-structured questionnaire was used to obtain information on socio - economic characteristics and other relevant variables. Descriptive statistics, which subsume frequencies, means and percentages, were used in the analysis of data on socio – economic characteristics cum production systems. Economic efficiency was analyzed using Translog stochastic profit function. The Maximum Likelihood Estimation Technique was employed in estimating the function while t-test statistic was employed in testing their determinants. With respect to production systems, majority (63.33%) of Fadama Telfairia farmers practised mixed vegetable production while 36.67% adopted sole Fadama Telfairia cropping system. The profit level was influenced by fertilizer price, wage rate and farm size while efficiency was found to be influenced by age, farming experience, membership of cooperative societies, farm and household sizes. The mean economic efficiency was 0.57 and as such, the average Fadama Telfairia would require a cost saving of 42% in order to attain the profit status of the most economically efficient farmer in the sample. Given the fact that ample opportunity exists for improvement in their efficiency, introduction of birth control policies and reviews of Land Use Act of 1990 are among policy options suggested by the study.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13469.

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Date of creation: 2007
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Publication status: Published in Journal of Agricultural Research and Policies, Nigeria 2.4(2007): pp. 87-93
Handle: RePEc:pra:mprapa:13469

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Keywords: economic efficiency; Fadama; stochastic frontier; translog;

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References

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  1. Ali, Farman & Bailey, David & Parikh, Ashok, 1993. "Price Distortions and Resource Use Efficiency in a Pakistani Province," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(1), pages 35-47.
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Cited by:
  1. Anyiro, Chidozie Onyedikachi & Emerole, Christopher Ogbonna & Osondu, Charles Kelechi & Udah, Solomon Chinyere & Ugorji, Silas Ebuka, 1. "Labour-Use Efficiency By Smallholder Yam Farmers In Abia State Nigeria: A Labour-Use Requirement Frontier Approach," International Journal of Food and Agricultural Economics (IJFAEC), Niğde University, Faculty of Economics and Administrative Sciences, vol. 1.
  2. Onyenweaku, C.E & Nwachukwu, Ifeanyi N. & Opara, T.C., 2010. "Productivity Growth in Food Crop Production in Imo State, Nigeria," MPRA Paper 29538, University Library of Munich, Germany, revised 02 May 2010.
  3. Malorgio, Giulio & Grazia, Cristina, 2012. "Performance of South Mediterranean Countries export supply-chain on the European market: between competition and cooperation," 2012 XX Convegno Annuale SIEA, Siracusa, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA) 130459, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA).
  4. Anonymous, 2012. "JARE Editors' Report," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(3), December.
  5. Nwachukwu, Ifeanyi N. & Onyenweaku, Chris E., 2009. "Allocative Efficiency among Fadama Fluted Pumkin Farmers in Imo State, Nigeria," MPRA Paper 27249, University Library of Munich, Germany.

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