IDEAS home Printed from https://ideas.repec.org/a/ags/apstra/339881.html
   My bibliography  Save this article

The Profit Efficiency Of Moringa Oleifera Production In Osun State, Nigeria

Author

Listed:
  • Adeyemo, Remi
  • Kehinde, Ayodeji Damilola
  • Gbadebori, Nafisat Oluwatayo

Abstract

The Moringa plant has nutritional value and numerous medicinal benefits. However, the profit efficiency of moringa production is yet to be investigated. This study, therefore, investigated the profit efficiency of Moringa oleifera production. A multistage sampling procedure was used for selecting 150 respondents for the study. The data were analyzed using descriptive statistics, budgetary analysis, and stochastic frontier production function. The descriptive statistics revealed that many of the respondents were male (53%), married (85%), and had formal education (87%). The results further revealed average values of 45 years for age, 7 people for household size, and 0.3 ha for farm size. Moringa production had a cost-benefit ratio of ₦5.857, profit margin of ₦0.182, expense structure ratio of ₦0.107, a net return on investment of ₦4.857, rate of return of ₦5.482, and profitability ratio of ₦0.981. Results obtained from the stochastic frontier model showed that moringa farmers had an average profit efficiency of 19% in their production. The empirical results from the frontier model showed that the price of family labour, seed, pesticide, hired labour, and transport significantly influence the profit efficiency of moringa farmers. However, years of education and farm size were the major sources of profit inefficiencies among moringa farmers. This study concludes that Moringa Oleifera production is highly profitable, but producers have been unable to maximize its profit efficiency. Therefore, this study recommended that producers should improve on adding value to moringa products and extend their distribution channels considering the cost incurred on transportation.

Suggested Citation

  • Adeyemo, Remi & Kehinde, Ayodeji Damilola & Gbadebori, Nafisat Oluwatayo, 2023. "The Profit Efficiency Of Moringa Oleifera Production In Osun State, Nigeria," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 17(2), December.
    • Handle: RePEc:ags:apstra:339881
    DOI: 10.22004/ag.econ.339881
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/339881/files/Adeyemo.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.339881?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rahman, Sanzidur, 2003. "Profit efficiency among Bangladeshi rice farmers," Food Policy, Elsevier, vol. 28(5-6), pages 487-503.
    2. Le, Minh & Hoang, Viet-Ngu & Wilson, Clevo & Managi, Shunsuke, 2020. "Net stable funding ratio and profit efficiency of commercial banks in the US," Economic Analysis and Policy, Elsevier, vol. 67(C), pages 55-66.
    3. Kolawole, Ogundari, 2006. "Determinants of Profit Efficiency Among Small Scale Rice Farmers in Nigeria: A Profit Function Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25238, International Association of Agricultural Economists.
    4. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. K. Ogundari, 2008. "Resource-productivity, allocative efficiency and determinants of technical efficiency of rainfed rice farmers: A guide for food security policy in Nigeria," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(5), pages 224-233.
    2. Bac Ho & Teruaki Nanseki & Yosuke Chomei, 2019. "Profit efficiency of tea farmers: case study of safe and conventional farms in Northern Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(4), pages 1695-1713, August.
    3. Fatima, Hina & Shaheen, Sania & Almas, Lal & Vestal, Mallory & Haroon, Sehrish, 2018. "Production Efficiency Analysis between Transplanting and Direct Seeded Rice Producers in Punjab, Pakistan," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 267162, Southern Agricultural Economics Association.
    4. Nguyen Huu Dang, 2017. "Determinants of profit efficiency among peanut farming households in Tra Vinh province, Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 7(2), pages 15-23.
    5. Trevor Fitzpatrick & Kieran McQuinn, 2007. "Measuring bank profit efficiency," Applied Financial Economics, Taylor & Francis Journals, vol. 18(1), pages 1-8.
    6. Wollni, Meike & Brümmer, Bernhard, 2012. "Productive efficiency of specialty and conventional coffee farmers in Costa Rica: Accounting for technological heterogeneity and self-selection," Food Policy, Elsevier, vol. 37(1), pages 67-76.
    7. Susmita Dasgupta & Craig Meisner & David Wheeler, 2007. "Is Environmentally Friendly Agriculture Less Profitable for Farmers? Evidence on Integrated Pest Management in Bangladesh," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 103-118.
    8. Ruggiero Sardaro & Piermichele La Sala, 2020. "The technical efficiency of the Apulian winegrowing farms with different irrigation water supply systems," Economia agro-alimentare, FrancoAngeli Editore, vol. 22(2), pages 1-24.
    9. Manyeki John Kibara & Kuria Simon & Rono Julius & Mulei Benson, 2024. "The Levels and Determinants of Profit Efficiency in Fodder Production: A Case of Southern Rangelands of Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3), pages 2405-2414, March.
    10. Gautam, Madhur & Ahmed, Mansur, 2019. "Too small to be beautiful? The farm size and productivity relationship in Bangladesh," Food Policy, Elsevier, vol. 84(C), pages 165-175.
    11. Amarender Reddy, A. & Bantilan, Ma Cynthia S., 2012. "Competitiveness and technical efficiency: Determinants in the groundnut oil sector of India," Food Policy, Elsevier, vol. 37(3), pages 255-263.
    12. Anik, Asif Reza & Bauer, Siegfried, 2015. "Impact of resource ownership and input market access on Bangladeshi paddy growers’ efficiency," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 4(3), April.
    13. Md Abdus Salam & Asif Reza Anik, 2023. "Social safety nets and productivity outcomes: Evidence and implications for Bangladeshi rice growers," Asian Economic Journal, East Asian Economic Association, vol. 37(3), pages 401-428, September.
    14. Mishra, Ashok K. & Bairagi, Subir & Velasco, Maria Lourdes & Mohanty, Samarendu, 2018. "Impact of access to capital and abiotic stress on production efficiency: Evidence from rice farming in Cambodia," Land Use Policy, Elsevier, vol. 79(C), pages 215-222.
    15. Rahman, Sanzidur, 2004. "Regional Productivity Differences And Prospect For Convergence In Bangladesh Agriculture, 1964-1992," 2004 Annual meeting, August 1-4, Denver, CO 20047, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Shrestha, Rudra Bahadur & Huang, Wen- Chi & Pradhan, Upasana, 2017. "Evaluating The Technical Efficiency Of Smallholder Vegetable Farms In Diverse Agroecological Regions Of Nepal," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(01), January.
    17. Rahman, Sanzidur & Rahman, Md. Sayedur, 2014. "Exploring the potential and performance of maize production in Bangladesh," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(2), pages 1-9, January.
    18. Paula Carvalho Pereda & Denisard Alves, 2014. "Agriculture And Climate: Short Andlong-Term Implications From Brazilian Municipalities," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 199, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    19. Myo Sabai Aye & Hisako Nomura & Yoshifumi Takahashi & Mitsuyasu Yabe, 2024. "Profit Efficiency, Weather Risk and Climate Adaptation Practices of Rice Farmers in Myanmar," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 14(7), pages 1-1, April.
    20. Meidiana Purnamasari & Wen-Chi Huang & Bambang Priyanto, 2023. "The Impact of Government Food Policy on Farm Efficiency of Beneficiary Small-Scale Farmers in Indonesia," Agriculture, MDPI, vol. 13(6), pages 1-14, June.

    More about this item

    Keywords

    Agribusiness; Agricultural Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:apstra:339881. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.apstract.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.