Analysis of Technical and Allocative Efficiencies of Groundnut Producers in Benue State, Nigeria

S.V. Ogar; A. M. Okeke; A. Ocholi; M. M. Atagher; V.V. Kolawole

doi:10.56201/ijaes.v10.no10.2024.pg35.45

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Analysis of Technical and Allocative Efficiencies of Groundnut Producers in Benue State, Nigeria

S.V. Ogar, A. M. Okeke, A. Ocholi, M. M. Atagher, V.V. Kolawole

Abstract

Despite the recognized need for efficiency improvements in agricultural production, there is a paucity of empirical studies focusing on the dual dimensions of technical and allocative efficiencies among groundnut producers in Benue State, Nigeria. Thus, this study analyzed the technical and allocative efficiencies of groundnut producers in Benue State, Nigeria. The study utilized data collected from 180 groundnut farmers from three local government areas of the State using multistage sampling technique. The collected data were analysed using descriptive statistics and stochastic production and cost functions. The findings revealed that the mean technical and allocative efficiencies of groundnut farmers in the study area were 0.68 and 0.99 respectively and that these farmers could improve input use by 32% to operate at the production frontier and save up to 0.8% of input costs by adopting cost-minimizing strategies while maintaining the same output levels. Analysis of results also showed that the cost of herbicides increases production costs by 0.054% and reduces groundnut output by 0.0027% while costs of fertilizer, seeds, pesticides, dressing, empty bags, and transportation contribute to production cost increases by 0.16%, 0.023%, 0.047%, 0.059%, 0.037%, and 0.16%, respectively. The study further revealed that educational attainment and extension service contact reduce technical inefficiency among farmers, whereas years of farming experience exacerbate allocative inefficiency. It was recommended that the use integrated pest and fertilizer management practices be promoted so as to minimize the overuse of herbicides, pesticide, and fertilizer among groundnut farmers; and groundnut farmers in the State should seek more affordable sources for inputs through bulk purchasing or cooperative arrangements; and that Benue State government should strengthen groundnut farmers’ access to extension services, and encourage continued educati

Keywords

Technical Efficiency; Allocative Efficiency; Groundnut Producers; Benue State;

References

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Analysis of Technical and Allocative Efficiencies of Groundnut Producers in Benue State, Nigeria

Abstract

Keywords

References

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