A STOCHASTIC FRONTIER APPROACH TO MEASUREMENT OF COST EFFICIENCY IN SMALL SCALE CASSAVA PRODUCTION IN KOGI STATE, NIGERIA

Abstract

The study was carried out in Kogi State of Nigeria in 2011. A multistage random sampling was used to select 360 small scale cassava farmers in the study. The survey instrument was a structured questionnaire. Information was collected on their socioeconomic characteristics and inputs used in cassava production and their prices. The data were analyzed with the use of stochastic frontier Cobb- Douglas cost function. The parameters of the function were estimated by the maximum likelihood method using the computer program frontier version 4.1. Results indicated that all the cost elements included in the cost function positively influenced the total cost of cassava production and the influence of each was statistically significant at the 1 percent level of probability. Age of the farmers, educational attainment of the farmers, household size, farming experience, extended visit, access to credit and membership of farmers association were significant determinants of cost efficiency at different levels of probability. Recommendations made to enhance cost efficient cassava production to include provision of farm inputs to the farmers at cheap prices, provision of transport facilities for easy transportation of farm inputs and outputs and encouraging youths to stay in the rural areas to provide labor for cassava production.