PROFITABILITY AND EFFICIENCY OF COWPEA PRODUCTION IN GIWA AND SOBA LOCAL GOVERNMENT AREAS OF KADUNA STATE, NIGERIA
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Author
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Department of Agricultural Science
ABSTRACT
| The study examined the profitability and efficiency of cowpea production in Giwa and Soba Local Government Areas of Kaduna state, Nigeria. A multi-stage sampling technique was adopted in selecting two Local Governments, and two districts from each Local Government. Primary data were collected from the total of 158 respondents through the use of a structured questionnaire. Descriptive statistics, Stochastic Frontier production function and Net farm Income was used. The study showed the mean age of the respondents to be 43years, the majority of the farmers (85%) had some form of education. The average household size was 11 persons while majority of the farmers were members of a cooperative society. The parameters of the stochastic frontier production function were estimated simultaneously with those of the model of inefficiency effects. Results indicated that all the variables (seed, fertilizer, agrochemical, labour, capital and cooperative association) were significant (P < 0.01). The mean technical efficiency is 73%. Findings further revealed that none of the sampled cowpea farmers reached the frontier threshold. However, the average economic efficiency of the cowpea farmers was 48%. This indicates that cowpea farms were economically inefficient. Also, age, household size, farming experience, cooperative association, extension contact, and amount of credit received were the socio-economic variables responsible for the variation in economic efficiency of the cowpea producers indicated that the total revenue was ₦82352.91 while the total cost is ₦65852.55. The net farm income is therefore ₦16500.36. The average rate of returns on investment was 1.25, indicating that for every ₦1 invested in cowpea production in the study area; a profit of 25 kobo was made. It was therefore recommended that timely and adequate supply of fertilizer, agrochemical and seed should be made available to farmers at affordable price in order to enhance the production of cowpea by the cooperative society and government. |
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