ALLOCATIVE EFFICIENCY AND PROFITABILITY OF MAIZE PRODUCTION INPUTS IN ORU EAST LOCAL GOVERNMENT AREA OF IMO STATE, NIGERIA
Ugwumba, C.O.A. and Omojola, J.T.
Department of Agricultural Economics and Extension
Anambra State University, Igbariam
E-mail: veecel326@yahoo.com
ABSTRACT
This
study specifically investigated profitability, allocative efficiency and
constraints to maize production in Oru East Local Government Area of Imo State,
Nigeria. Simple random sampling technique was used to select 120 respondents. Well
structured and pre-tested interview instruments were administered to the
respondents to obtain data. Data were analyzed by means of descriptive
statistics, budgetary method and power function model. Results revealed that the enterprise was
profitable based on the positive values of net farm income (N1,511,905) and net return on investment
(0.86). Farm size, labour, fertilizer, capital and maize seeds had allocative efficiency values
of 1.39, 0.0037,-0.000008, 0.0075 and
0.0018 respectively; implying that cost
of labour, fertilizer, capital and maize seeds were over-utilized, while farm
size was under-utilized. Production was most seriously constrained by
inadequate extension services, lack of information on modern technologies and
poor storage facilities. Maize farmers’
problems would be ameliorated by proper implementation of the current Federal
Government Extension Transformation Agenda (AETA) to make modern maize
production techniques available, affordable and adoptable. This would improve
efficiency of resource-use, enterprise profitability and sustainability.
Keywords: Maize, Efficiency, Profitability, Return to scale, Imo State, Nigeria
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