Application of the Stochastic Production Frontier Function Model to Cassava Production in the Floodplain Area of Rivers State, Nigeria

Abstract

This study examined the application of the stochastic production frontier function model to cassava production in the floodplain area of Rivers State, Nigeria. The need to evaluate the physical productivity consideration (technical efficiency) in cassava production in the floodplain necessitated this study. The objectives of the study include; identify socio-economic characteristics of the farmers; level of technical efficiency, determinants of technical efficiency and inefficiency. 170 respondents were randomly selected. Data was collected using questionnaire and farm records. Descriptive statistics and stochastic production frontier function model were the analytical tools used. The result indicated that the average age of the farmers was 44 years and mainly females. The average family size was 8 persons, majority (49.4 %) of the respondents had primary school certificate and 28.8% of the farmers had farm size of less than 0.4 hectare. The result of the technical efficiency indicated that farm size and number of labour used positively influenced the technical efficiency at 1 percent level of significance. The estimated gamma parameter of the model was 0.62, which implied that 62 percent of the total variation in cassava output among the producers could be attributed to differences in the technical efficiencies. The mean technical efficiency was 70 percent. None of the variables included in the model exerted a significant relationship on the technical inefficiency of the farms. Farmers were advised to increase the volume of input use of farm size and quantity of labour in order to achieve the best frontier in cassava production in the study area.

Keys words: stochastic frontier model, cassava production, floodplain area, Rivers State, Nigeria