Analysis of Profit Efficiency of Sesame Production in Yobe State, Nigeria: A Stochastic Translog Profit Function Approach

Main Article Content

S. E. Jonah
B. G. Shettima
A. S. S. Umar
E. Timothy

Abstract

Aims: Sesame productions are constantly bedeviled with menace because of inadequate supply of quality seed, extension services, credit facilities, presence of inefficiencies among others. The capacity of sesame producers to accept new innovation and achieve sustained production relies upon the level of profit efficiency, generally dictated by variable input and output prices including the cost of fixed factors of production. Physical profitability contemplations such technical, allocative and economic efficiency are significant in improving production proficiency but profit efficiency will result to higher profit to sesame farmers. This paper examined the profit efficiency of sesame production in Yobe State, Nigeria.

Research Methods: Multistage sampling procedure is utilized to choose the farmers. A structured questionnaire is administered to 180 respondents spread across 12 Local Government Areas to acquired essential information. Descriptive statistics used includes mean, frequency and percentage. The inferential statistic used is stochastic translog profit function.

Findings: The result of levels of profit efficiency shows the mean profit efficiency of 0.8828. The result of the translog profit function indicates the sigma square to be 0.249 and variance of 0.909. All the cost variables has negative coefficients and significant at one percent level except for cost of farmlands. The inefficiency variables levels of education, Access to Extension Services, Access to credits among others reduce inefficiency while off-farm income and access to market information increase inefficiency.

Conclusion: It can be concluded that inefficiency exist in the utilization of resources. All the input cost variable decreases profit efficiency and all the socioeconomic characteristics decreases profit inefficiency with the exception of, off-farm income and access to market information which were found to increase profit inefficiency.

Keywords:
Profit efficiency, sesame production, stochastic translog profit efficiency, Yobe State, sesame farmers, coefficient.

Article Details

How to Cite
Jonah, S. E., Shettima, B. G., Umar, A. S. S., & Timothy, E. (2020). Analysis of Profit Efficiency of Sesame Production in Yobe State, Nigeria: A Stochastic Translog Profit Function Approach. Asian Journal of Agricultural Extension, Economics & Sociology, 38(9), 58-70. https://doi.org/10.9734/ajaees/2020/v38i930408
Section
Original Research Article

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