PROFITABILITY AND EFFICIENCY OF SORGHUM PRODUCTION IN FUNAKAYE, BALANGA AND YAMALTU DEBA LOCAL GOVERNMENT AREAS OF GOMBE STATE, NIGERIA
PROFITABILITY AND EFFICIENCY OF SORGHUM PRODUCTION IN FUNAKAYE, BALANGA AND YAMALTU DEBA LOCAL GOVERNMENT AREAS OF GOMBE STATE, NIGERIA
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Date
2021-02
Authors
TUGGA, Simon Eli
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Abstract
The study focused on profitability and efficiency of sorghum production in Funakaye, Balanga
and YamaltuDeba Local Government Areas of Gombe State, Nigeria.Primary data was used for
the study. Data were collected with the aid of structured questionnaire administered to Two
hundred and thirty four (234) sorghum farmers in the study area. The data were analyzed using
descriptive statistics, gross margin and stochastic frontier for both production and cost function.
The results of the socio-economic characteristics of the farmers showed that the mean age of the
farmers was 40 years and average years of farming experience was 16 years. The results also
showed that majority of the farmers (86 percent) were not registered with a cooperative. About
12 percent of these farmers had no formal education. The average household size of the farmers
was 9 persons per household. Also 80.3 percent of the farmers had no access to credit. The result
shows that sorghum production is profitable with a gross margin of ₦187,758 and the return per
naira invested was ₦2.12 indicating that for every ₦1 invested in sorghum production a profit of
1.12 Kobo will be made. The mean technical and allocative efficiencies in sorghum production
were 0.63 and 0.65 respectively.The estimated coefficients of all the parameters of production
function (farm size, fertilizer, manure and herbicides) were positive and significant while
(pesticides and labour) were negative at p<0.01, p<0.05 and p<0.1 levels of probabilities
respectively. Results of the factors influencing technical efficiency in sorghum production
showed that age, farming experience; years of cooperative membership and access to credit were
negative and statistically significant at p<0.01 , while extension visit and household size were
negative and statistically significant atp<0.05 level. The factors that significantly influence
allocative efficiency were Age, educational level, household size, farming experience, years of
cooperative membership and access to credit.Major constraints to sorghum production were high
cost of fertilizer, inadequate capital, and high cost of labour. Itwas concluded that sorghum
production was profitable with gross margin of ₦187, 758 and with ₦2.12 return per naira
invested, it was also concluded that 92 percent of random variation in the yield of sorghum
farmers was due to the farmers‟ inefficiency in their respective sites. It was recommended that
farmers should adopt the recommended rate of fertilizer application so as to be more efficient. It
was also recommended that farmers should be encouraged to join cooperative societies in other
to enhance their farming skills.
Description
A DISSERTATION SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES,
AHMADU BELLO UNIVERSITY ZARIA IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE
IN AGRICULTURAL ECONOMICS
DEPARTMENT OF AGRICULTURAL ECONOMICS,
FACULTY OF AGRICULTURE,
AHMADU BELLO UNIVERSITY,
ZARIA, KADUNA STATE,
NIGERIA
Keywords
PROFITABILITY,, EFFICIENCY,, SORGHUM PRODUCTION,, FUNAKAYE,, BALANGA,, YAMALTU DEBA LOCAL GOVERNMENT AREAS,, GOMBE STATE,, NIGERIA