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Profitability and profit efficiency of certified groundnut seed and conventional groundnut production in Northern Ghana: A comparative analysis

Author

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  • Dominic Tasila Konja
  • Franklin N. Mabe
  • Richard Oteng-Frimpong

Abstract

This study seeks to compare profitability and profit efficiency of certified groundnut seed (CGS) and conventional groundnut (CG) production in Northern Ghana using cross-sectional data. The two-step stochastic metafrontier profit model was used to estimate profit efficiencies and their determining factors for CGS and CG producers. The study found that CGS production is more profitable and profit efficient than CG production. Whilst profit efficiency of CGS is influenced by age, education, extension visits, Farmer-Based Organisation meetings, and farming experience, profit efficiency of CG producers is influenced by educational status, access to extension, and access to mobile phone. To increase profit and profit efficiency, the capacity of CGS producers should be built to incentivise them to upscale CGS production so as to bridge the demand deficit in the country. Also, farmers should be trained to enter into CGS production.

Suggested Citation

  • Dominic Tasila Konja & Franklin N. Mabe & Richard Oteng-Frimpong, 2019. "Profitability and profit efficiency of certified groundnut seed and conventional groundnut production in Northern Ghana: A comparative analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1631525-163, January.
    • Handle: RePEc:taf:oaefxx:v:7:y:2019:i:1:p:1631525
    DOI: 10.1080/23322039.2019.1631525
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    Citations

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    Cited by:

    1. Dominic T. Konja, 2022. "Technology Adoption and Output Difference Among Groundnut Farmers in Northern Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 303-320, February.
    2. Kathleen Ragsdale & Mary R. Read-Wahidi & Qian M. Zhou & Kerry Clark & Mawuli A. K. Asigbee & Courtney Tamimie & Peter Goldsmith, 2022. "Low-cost soybean input bundles impact women farmers’ subsistence livelihood traps: evidence from Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(4), pages 1045-1062, August.
    3. ANANG, Benjamin Tetteh & SHAFIWU, Adinan Bahahudeen, 2022. "Profit Efficiency Of Smallholder Maize Farmers In Sagnarigu Municipal Of Northern Ghana," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 25(1), March.
    4. Richard D. Smart & Amer Ait Sidhoum & Johannes Sauer, 2022. "Decomposition of efficiency in the global seed industry: A nonparametric approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2133-2147, September.
    5. Anang, Benjamin Tetteh & Shafiwu, Adinan Bahahudeen, 2022. "Profit Efficiency of Smallholder Maize Farmers in Sagnarigu Municipal of Northern Ghana," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 25(2), December.
    6. Rahaman, Md Shajedur & Haque, Sadika & Sarkar, Md Abdur Rouf & Rahman, Mohammad Chhiddikur & Reza, Md Salim & Islam, Mohammad Ariful & Siddique, Md Abu Bakr, 2021. "A Cost Efficiency Analysis of Boro Rice Production in Dinajpur District of Bangladesh," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(1), pages 67-77.

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