Analysis of Cost Efficiency and Profitability of Integrating Climate- Smart Technologies in Cassava Production in Anambra State Nigeria

Abstract

The study used stochastic frontier cost function to analyze cost efficiency of cassava farmers and ascertained variation in cost efficiency due to inefficiency effects on cassava production in the study area. Data were collected from 135 randomly selected cassava farmers. Data were analyzed using descriptive statistics and stochastic cost function. Results showed that the mean age of cassava farmers was 41 years. Cost of organic manure, labour, improved cassava stem and agro chemicals were significant factors that are determinants of total cost associated with cassava production in the study area. That is, 1% increase in the cost of organic manure, labour, improved cassava stem and agro chemicals will increase total production cost by approximately 0.86%, 0.56%, 0.32% and 0.68% respectively with the value of the sigma squared (δ2) being
0.95 indicating a good fit. The maximum likelihood estimates for the Stochastic cost function used in explaining the inefficiency parameters for cassava farmers showed that the coefficient of age, household size and level of education all had the apriori expected signs and statistically significant showing that an increase in any of them decreases cost inefficiency. The mean cost efficiency was 0.62, meaning that an average cassava farmer in the study area has the scope for increasing cost efficiency by 38%. It was concluded that farmers are not cost efficient from their cost efficiency indices. Extension agents should design structured training modules focusing on efficient use of organic manure (application rates, composting methods) and adoption and management of improved cassava varieties.