Profitability and Technical Efficiency of Ofada Rice Production in Ogun State
Year: 2024
Type: article
Abstract: The study examined the profitability and technical efficiency of Ofada rice production in Egba Division of Ogun State. Multi-stage sampling procedure was used to select two hundred and forty Ofada rice farmers. Data collected were analyzed using descriptive statistics, cost and return structure and stochastic frontier analysis. The result reveals average revenue of ₦602,350.00, a total cost of ₦290,620.65, a gross margin of ₦358,178.00 and a total net farm income of ₦311,729.35 for the production season. The return per naira invested was 1.07 which implied thatfor every ₦1.00 invested about ₦1.07 was returned. The maximum likelihood estimates (MLE) of the production function showed that rice farm size, fertilizer and hired labour were significant variables influencing rice production. The mean efficiency of was 0.75 implying there is room for increase in technical efficiency. The study concluded that Ofada rice production is profitable and therefore recommended that stakeholders should create avenue for farmers to have access tocredit facilities and loan should be available at affordable interest rate. Farmers should also be encouraged to join cooperative societies from which they can access farm inputs at cheaper rates.
Authors: Ogunnaike, M. G., Olabode, O. J., 1Nojeem, Y. A.
Language: English
Domain: Life Sciences
Open Access status: bronze
OpenAlex ID: W6939280665
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