Analysis of Technical Efficiency and Determinants of Acha (Digitaria exilis) Production in Kaduna State, Nigeria

Abstract

The study aimed at analyzing the technical efficiency of acha production using structured questionnaire administered to 200 randomly selected acha farmers in Kaduna State. The data were subject to analysis using the stochastic frontier production function and the gross margin analysis in order to achieve the set objectives. The scale coefficient (1.16) indicates that the farmers are operating at increasing returns to scale, that is, stage one of the production phase. The technical efficiency score of each respondent revealed that the most efficient farmer operated at 96% efficiency, the least efficient farmer was found to operate at 53% efficiency level, while the most frequently occurring efficiency score was 81%, indicating that farmers still have room to increase the efficiency in their farming activities as about 19% efficiency gap from the optimum (100%) is yet to be attained by all farmers. The technical inefficiency model revealed that the farmers’ selected socio economic characteristics (production experience, contact with extension agent, household size, level of education and off farm income) and transaction cost variables (harvesting cost, processing cost, storage cost, transportation cost, farm distance) contributed immensely to the technical efficiency of acha farmers, as the variable were significant (P=.01). Acha production is profitable in the study area. Important constraints encountered by acha farmers include high cost of labour, inadequate capital and high cost of inputs. The study suggests increase in the use of inputs by farmers as well as investing in research and extension activities by the government so that farmers can make better decisions regarding input and cost allocation in farming.