TECHNICAL EFFICIENCY IN THE PRODUCTION OF NSUKKA YELLOW PEPPER AMONG RURAL FARMERS

TECHNICAL EFFICIENCY IN THE PRODUCTION OF NSUKKA YELLOW PEPPER AMONG RURAL FARMERS

ABSTRACT

This study determines the technical efficiency level and socioeconomic characteristics that influence the technical efficiency of yellow pepper farmers. Stochastic Frontier function that incorporated inefficiency factors was estimated using a Maximum Likelihood technique to provide estimates of technical efficiency and its determinants using data obtained from 60 Nsukka Yellow pepper farmers in Nsukka, Enugu State, Nigeria. The result shows that the mean technical efficiency was 70 percent indicating the need for improvement in efficiency level for additional 30 percent. The result also indicates that the respondents are operating in the rational stage (stage II) of production as indicated by the return to scale of 0.797. The empirical findings also show that age, number of years spent in formal education, family size and farming experience are important socio-economic determinants of the respondents’ level of efficiency. Farming experience had positive influence on the respondents’ level of efficiency. It was recommended that rural women should be effectively mobilized for full participation in the production of Nsukka yellow pepper through the use of extension agents and community leaders, provision of farm inputs through establishment of channels that will enable farmer access credit facilities and review of land use act to give the rural farmers access to land.