Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria

Ogunleye Ayodeji Sunday; Bamire Adebayo Simeon; Awolola Olatundun

doi:doi:10.11648/j.eco.20190801.13

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Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria

Ogunleye Ayodeji Sunday, Bamire Adebayo Simeon, Awolola Olatundun

Published in Economics (Volume 8, Issue 1)

Received: 27 August 2018 Accepted: 21 September 2018 Published: 27 February 2019

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Abstract

Biofortified (vitamin A) cassava was developed through convectional breeding similar to most other improved varieties cultivated by Nigeria farmers. Despite its potential in addressing the increasing food demand and malnutrition in the country, lack of empirical knowledge about its yield and return on investment has been a major barrier to the uptake of this technology among farmers in Nigeria. This study examined the socio-economic characteristics of vitamin A cassava farmers; analyzed farm level efficiency and return on investment from vitamin A cassava in the study area; determined the factors affecting farm level efficiency and productivity, and examined the constraint to productivity and profitability among vitamin A cassava farmers. A multistage random sampling was used to select a total of 100 vitamin A cassava farmers in the study area. The data collected were analyzed using descriptive statistics, stochastic frontier production function (SFPF), profitability ratio and regression analysis. The results indicated that investing in vitamin A cassava as a business was very profitable. The result showed that 82% of the respondents were male, the mean age of the farmers was 53.25, 49% had only primary school certificate education, 66% farmed on the land between 1-2 hectares. The result further showed that on the average, total revenue was N261511.90, the total variable cost was N87754, gross margin was N173757.9, total cost was N179828.8, and net income was N81683.05. Mean technical efficiency was 78.73%. The study concluded that vitamin A cassava production in the study area was efficient and profitable. These results have implications for the design of effective advocacy strategies to attract more farmers into vitamin A cassava production in Nigeria.

Published in	Economics (Volume 8, Issue 1)
DOI	10.11648/j.eco.20190801.13
Page(s)	14-19
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Profitability, Vitamin A Cassava, Technical Efficiency

References

[1]	Akinwumi, A, (2011). Pro Vitamin A Cassava: a Revolution for Nutrition and Health in Nigeria Speech delivered by Dr. Akinwumi Adesina, Honourable Minister of Agriculture and Rural Development, at the launch of the Pro-Vitamin A Cassava Varieties, held at the National Root Crops Research Institute, Umudike, Abia State, pp: 1-9 Available from http://www.harvestplus.org/sites/default/files/Speech%2016,%202011._0.pdf [Accessed on 20th March, 2015]
[2]	International Institute of Tropical Agriculture (IITA) (2011). Integrated cassava project in conjunction with Presidential initiative on cassava: A study on the impact of IITA’s processing research on Nigeria’s staple food system. [Online] Available from http:// www.iita.org/2011-iita-in-the-news;jsessionid. [Accessed Nov. 18, 2015].
[3]	Farrell, M. J. (1957). The measurement of a productive efficiency. Journal of the Royal Statistical Society, Series A 120 (3): 252–281. [Online] Available from http://www.aae.wisc. edu/aae741/Ref/Farrell%201957.pdf. [Accessed Nov. 30, 2015].
[4]	Afriat, S. N. (1972). Efficiency estimation of production functions. International Economic Review 13 (3): 568–98.
[5]	Battese, G. E. and Coelli, T. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20 (2): 325-332.
[6]	Aigner, D. Lovell, C. K. and Schmidt, P. (1977). Formulation and estimation of Stochastic frontier production function models. Journal of Econometrics 6 (1): 21- 37.
[7]	Seitz, W. D. (1971). Productive efficiency in the steam-electric generating industry. Journal of Political Economy 79 (4): 878–86.
[8]	Timmer, C. P. (1971). Using a probabilistic production frontier to measure technical efficiency. Journal of Political Economy 79 (2): 776–794.
[9]	Gahé, Z. S. Y., Zhao, H. Belinga, T. (2016). Technical efficiency assessment using data envelopment analysis: an application to the banking sector of Côte d’Ivoire. Social and Behavioral Sciences 235 198–207.
[10]	Coelli, T. J. (1995). Recent developments in frontier modeling and efficiency measurement. Australian Journal of Agricultural Economics 39(3): 219–45.
[11]	José, A. M., Román, R. Miguel, G. C. & María, S. S. (2015). Technical efficiency of thermal power units through a stochastic frontier. DYNA 82 (191), 63-68. DOI: http://dx.doi.org/10.15446/dyna.v82n191.51152.
[12]	Meeusen, W. and Van den Broeck, J. (1977). Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error. Int. Econ. Rev. 18: 435-44.
[13]	Amao, J. O. and Awoyemi, T. T. (2008). Adoption of Improved Cassava Varieties and Its Welfare Effect on Producing Households in Osogbo ADP Zone of Osun State. Department of Agricultural Economics and Extension Ladoke Akintola University of Technology. Nigeria, 1:1-11 Available from http://www.geneconserve.pro.br/siteantigo/artigo045.pdf [Accessed on 20th January, 2015].

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Ogunleye Ayodeji Sunday, Bamire Adebayo Simeon, Awolola Olatundun. (2019). Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria. Economics, 8(1), 14-19. https://doi.org/10.11648/j.eco.20190801.13

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ACS Style

Ogunleye Ayodeji Sunday; Bamire Adebayo Simeon; Awolola Olatundun. Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria. Economics. 2019, 8(1), 14-19. doi: 10.11648/j.eco.20190801.13

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AMA Style

Ogunleye Ayodeji Sunday, Bamire Adebayo Simeon, Awolola Olatundun. Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria. Economics. 2019;8(1):14-19. doi: 10.11648/j.eco.20190801.13

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@article{10.11648/j.eco.20190801.13,
  author = {Ogunleye Ayodeji Sunday and Bamire Adebayo Simeon and Awolola Olatundun},
  title = {Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria},
  journal = {Economics},
  volume = {8},
  number = {1},
  pages = {14-19},
  doi = {10.11648/j.eco.20190801.13},
  url = {https://doi.org/10.11648/j.eco.20190801.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20190801.13},
  abstract = {Biofortified (vitamin A) cassava was developed through convectional breeding similar to most other improved varieties cultivated by Nigeria farmers. Despite its potential in addressing the increasing food demand and malnutrition in the country, lack of empirical knowledge about its yield and return on investment has been a major barrier to the uptake of this technology among farmers in Nigeria. This study examined the socio-economic characteristics of vitamin A cassava farmers; analyzed farm level efficiency and return on investment from vitamin A cassava in the study area; determined the factors affecting farm level efficiency and productivity, and examined the constraint to productivity and profitability among vitamin A cassava farmers. A multistage random sampling was used to select a total of 100 vitamin A cassava farmers in the study area. The data collected were analyzed using descriptive statistics, stochastic frontier production function (SFPF), profitability ratio and regression analysis. The results indicated that investing in vitamin A cassava as a business was very profitable. The result showed that 82% of the respondents were male, the mean age of the farmers was 53.25, 49% had only primary school certificate education, 66% farmed on the land between 1-2 hectares. The result further showed that on the average, total revenue was N261511.90, the total variable cost was N87754, gross margin was N173757.9, total cost was N179828.8, and net income was N81683.05. Mean technical efficiency was 78.73%. The study concluded that vitamin A cassava production in the study area was efficient and profitable. These results have implications for the design of effective advocacy strategies to attract more farmers into vitamin A cassava production in Nigeria.},
 year = {2019}
}

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TY  - JOUR
T1  - Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria
AU  - Ogunleye Ayodeji Sunday
AU  - Bamire Adebayo Simeon
AU  - Awolola Olatundun
Y1  - 2019/02/27
PY  - 2019
N1  - https://doi.org/10.11648/j.eco.20190801.13
DO  - 10.11648/j.eco.20190801.13
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 14
EP  - 19
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20190801.13
AB  - Biofortified (vitamin A) cassava was developed through convectional breeding similar to most other improved varieties cultivated by Nigeria farmers. Despite its potential in addressing the increasing food demand and malnutrition in the country, lack of empirical knowledge about its yield and return on investment has been a major barrier to the uptake of this technology among farmers in Nigeria. This study examined the socio-economic characteristics of vitamin A cassava farmers; analyzed farm level efficiency and return on investment from vitamin A cassava in the study area; determined the factors affecting farm level efficiency and productivity, and examined the constraint to productivity and profitability among vitamin A cassava farmers. A multistage random sampling was used to select a total of 100 vitamin A cassava farmers in the study area. The data collected were analyzed using descriptive statistics, stochastic frontier production function (SFPF), profitability ratio and regression analysis. The results indicated that investing in vitamin A cassava as a business was very profitable. The result showed that 82% of the respondents were male, the mean age of the farmers was 53.25, 49% had only primary school certificate education, 66% farmed on the land between 1-2 hectares. The result further showed that on the average, total revenue was N261511.90, the total variable cost was N87754, gross margin was N173757.9, total cost was N179828.8, and net income was N81683.05. Mean technical efficiency was 78.73%. The study concluded that vitamin A cassava production in the study area was efficient and profitable. These results have implications for the design of effective advocacy strategies to attract more farmers into vitamin A cassava production in Nigeria.
VL  - 8
IS  - 1
ER  -

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Author Information

Ogunleye Ayodeji Sunday

Department of Agricultural Economics, Obafemi Awolowo University, Ile-Ife, Nigeria
Bamire Adebayo Simeon

Department of Agricultural Economics, Obafemi Awolowo University, Ile-Ife, Nigeria
Awolola Olatundun

Department of Agricultural Economics, Obafemi Awolowo University, Ile-Ife, Nigeria

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APA Style

Ogunleye Ayodeji Sunday, Bamire Adebayo Simeon, Awolola Olatundun. (2019). Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria. Economics, 8(1), 14-19. https://doi.org/10.11648/j.eco.20190801.13

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ACS Style

Ogunleye Ayodeji Sunday; Bamire Adebayo Simeon; Awolola Olatundun. Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria. Economics. 2019, 8(1), 14-19. doi: 10.11648/j.eco.20190801.13

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AMA Style

Ogunleye Ayodeji Sunday, Bamire Adebayo Simeon, Awolola Olatundun. Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria. Economics. 2019;8(1):14-19. doi: 10.11648/j.eco.20190801.13

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@article{10.11648/j.eco.20190801.13,
  author = {Ogunleye Ayodeji Sunday and Bamire Adebayo Simeon and Awolola Olatundun},
  title = {Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria},
  journal = {Economics},
  volume = {8},
  number = {1},
  pages = {14-19},
  doi = {10.11648/j.eco.20190801.13},
  url = {https://doi.org/10.11648/j.eco.20190801.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20190801.13},
  abstract = {Biofortified (vitamin A) cassava was developed through convectional breeding similar to most other improved varieties cultivated by Nigeria farmers. Despite its potential in addressing the increasing food demand and malnutrition in the country, lack of empirical knowledge about its yield and return on investment has been a major barrier to the uptake of this technology among farmers in Nigeria. This study examined the socio-economic characteristics of vitamin A cassava farmers; analyzed farm level efficiency and return on investment from vitamin A cassava in the study area; determined the factors affecting farm level efficiency and productivity, and examined the constraint to productivity and profitability among vitamin A cassava farmers. A multistage random sampling was used to select a total of 100 vitamin A cassava farmers in the study area. The data collected were analyzed using descriptive statistics, stochastic frontier production function (SFPF), profitability ratio and regression analysis. The results indicated that investing in vitamin A cassava as a business was very profitable. The result showed that 82% of the respondents were male, the mean age of the farmers was 53.25, 49% had only primary school certificate education, 66% farmed on the land between 1-2 hectares. The result further showed that on the average, total revenue was N261511.90, the total variable cost was N87754, gross margin was N173757.9, total cost was N179828.8, and net income was N81683.05. Mean technical efficiency was 78.73%. The study concluded that vitamin A cassava production in the study area was efficient and profitable. These results have implications for the design of effective advocacy strategies to attract more farmers into vitamin A cassava production in Nigeria.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Profitability of Investment and Farm Level Efficiency Among Groups of Vitamin A Cassava Farmers in Oyo State Nigeria
AU  - Ogunleye Ayodeji Sunday
AU  - Bamire Adebayo Simeon
AU  - Awolola Olatundun
Y1  - 2019/02/27
PY  - 2019
N1  - https://doi.org/10.11648/j.eco.20190801.13
DO  - 10.11648/j.eco.20190801.13
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 14
EP  - 19
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20190801.13
AB  - Biofortified (vitamin A) cassava was developed through convectional breeding similar to most other improved varieties cultivated by Nigeria farmers. Despite its potential in addressing the increasing food demand and malnutrition in the country, lack of empirical knowledge about its yield and return on investment has been a major barrier to the uptake of this technology among farmers in Nigeria. This study examined the socio-economic characteristics of vitamin A cassava farmers; analyzed farm level efficiency and return on investment from vitamin A cassava in the study area; determined the factors affecting farm level efficiency and productivity, and examined the constraint to productivity and profitability among vitamin A cassava farmers. A multistage random sampling was used to select a total of 100 vitamin A cassava farmers in the study area. The data collected were analyzed using descriptive statistics, stochastic frontier production function (SFPF), profitability ratio and regression analysis. The results indicated that investing in vitamin A cassava as a business was very profitable. The result showed that 82% of the respondents were male, the mean age of the farmers was 53.25, 49% had only primary school certificate education, 66% farmed on the land between 1-2 hectares. The result further showed that on the average, total revenue was N261511.90, the total variable cost was N87754, gross margin was N173757.9, total cost was N179828.8, and net income was N81683.05. Mean technical efficiency was 78.73%. The study concluded that vitamin A cassava production in the study area was efficient and profitable. These results have implications for the design of effective advocacy strategies to attract more farmers into vitamin A cassava production in Nigeria.
VL  - 8
IS  - 1
ER  -

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