Resource Use and Technical Efficiency in Value Addition to Cassava: A Case Study on Gari and Fufu Processing in Ogun State, Nigeria

Abstract

Aim: The analysis of efficiency of resources used in value addition to cassava and enterprise economic efficiency for the two products obtained from cassava processing: gari and fufu. Study Design: Structured questionnaires were used to obtain the required information from the major processors of cassava tubers in Nigeria and the consumers of the products. Place and Duration: The study was carried out in the two major areas of production of cassava processing in Ogun state of Nigeria. It covered the period from January to December 2013. Methodology: Primary data were collected from cassava tuber processors, retailers, merchants and final consumers of the two major foods (Gari and Fufu) obtained from cassava tubers. Descriptive statistics, Budgeting and Stochastic production frontier were used to analyze the data. Results: The ratio of marginal value product of inputs (MVP) to input prices (Px) lower than one indicates that the variables (quantity of cassava tuber, cost of transportation and labour) were highly over utilized. Since none of the inputs used had this ratio equal to one, it indicates that these resources were not optimally allocated in the study areas .The enterprise economic efficiency is 1.10 and 1.33 for gari and fufu respectively. The mean technical efficiency index for the entire fufu and gari respondents are 0.59 and 0.45 respectively.   Conclusion: The technical efficiency of fufu and gari can potentially be increased through a more judicious use and better management of available resources to increase productivity of both fufu and gari.  * Naira (₦) is the Nigeria Currency; ₦158 is equivalent to $1.00 as at the time of this study.