Profitability and Resource Use Efficiency in Cassava Production: Evidence from Delta State, Nigeria

Abstract

Cassava has played and continues to play an outstanding role. The country's failure to meet current demand has been due to the efficiency of farmers' use of resources. The study examined resource use efficiency in cassava production. Data from 120 cassava producers were carefully chosen using random sampling procedure. Descriptive statistics and multiple regression model were applied to analyze the data. The results disclosed that the greater part of the growers were female with mean age of 45 years, educated and married. The mean household size was 6 persons with mean farming experience of 16 years. Majority of the producers belong to farming association. The result of cost and returns shows that the total production cost , total revenue realized and profit were N221,500, N398,000 and N176,500 respectively with BCR of 1.80 which implies that cassava production is profitable. The regression estimated showed that farm sizes, fertilizers, labour and planting material influence the output produced. The estimated output elasticity was 0.934, which means decreasing return to scale. The result indicated that farm size, fertilizers, labour and planting materials were inefficiently used, thereby dropping below the best economic level. The low ratios of MVP / MFC of the entire variables were shown to be less than unitary. Approximately 56.19%, 99.98%, 97.67%, 99.99% and 11.28% increase in MVP are necessary to optimize the allocation of farm size, fertilizer, labour, planting material and agrochemical. Major problems include inaccessibility to financial services, high labour cost, poor market prices and insufficient extension services. Agricultural policies should be aimed at supplying agricultural inputs, such as fertilizer and effective extension programs to guarantee the productive usage of resources. It is also suggested that extension facilities be intensified to provide farmers with information on new innovations and methods of farming while steps should be taken to lessen the militating effect of the constraints. Keywords: Resource Use Efficiency, Cassava Production, Benefit-Cost Analysis, Farmers.