Technical Efficiency on Cocoa Production

Technical Efficiency on Cocoa Production

Technical Efficiency on Cocoa Production

 

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Abstract on Technical Efficiency on Cocoa Production

There has been a continuous problem in the production of cocoa over the years. As a result of, lack of application technical knowhow and other economic tools. At a point in the country economic history, agricultural production was of a major priority in Nigerian. But as time went by, there has been a gradual and small fall in the output overtime. 

The study relied upon primary data generated from interviewing cocoa farmers using a set of structured questionnaire. A two stage sampling technique was adopted in selecting one hundred and twenty (120) cocoa farmers in Esan West Local Government Area of Edo State, Nigeria. The data on the socio-economic characteristics of the farmers were analyzed using descriptive statistic, while the stochastic production function using the ordinary lease square estimate (OLS) techniques was used in estimating the farmer’s technical efficiency and their determinants. 

Result of the analysis showed that farmers are not fully technically efficient due to inefficient usage of resources. The efficiency level ranged between 0.02-0.99 with a mean of 0.29. The result confirmed that the cocoa farmers in the area were technically inefficient. The major contributing factors to efficiency were farmer experience, level of education, family size. The study observed that there is enough room to improve efficiency with the farmers current resources base and available technology and concluded that polices that would directly affect these identified variables should be pursued.

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