IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i6p4840-d1091831.html
   My bibliography  Save this article

Technology Gap Efficiency of Small-Scale Rice Processors in Anambra State, Nigeria

Author

Listed:
  • Chukwujekwu A. Obianefo

    (IFAD Assisted Value Chain Development Programme, ADP Complex, Enugu-Onitsha Expressway, Awka P.M.B. 5051, Nigeria
    Department of Agricultural Economics and Extension, Nnamdi Azikiwe University, Awka Enugu-Onitsha Expressway, Awka P.M.B. 5025, Nigeria)

  • Ike C. Ezeano

    (Department of Agricultural Economics and Extension, Nnamdi Azikiwe University, Awka Enugu-Onitsha Expressway, Awka P.M.B. 5025, Nigeria)

  • Chinwe A. Isibor

    (Department of Agricultural Economics and Extension, Nnamdi Azikiwe University, Awka Enugu-Onitsha Expressway, Awka P.M.B. 5025, Nigeria)

  • Chinwendu E. Ahaneku

    (Department of Agricultural Economics and Extension, Nnamdi Azikiwe University, Awka Enugu-Onitsha Expressway, Awka P.M.B. 5025, Nigeria)

Abstract

This paper aims to examine the technology gap efficiency of small-scale rice processors in Anambra State, Nigeria. The research was conducted through a survey of 100 small-scale rice processors in Anambra State. Data were collected with structured questionnaires and analyzed using descriptive, stochastic frontier analysis, stochastic meta-frontier model, and inferential statistical techniques. The study revealed that important variables to rice processing present in the state are paddy, firewood, water, and huller. Concerning the economic-specific factors, the cost of grading and other processing assets contributes to inefficiency. The results equally showed that the technology gap efficiency of small-scale rice processors in the industry is tied to or tangential to the frontier output, meaning that the processors in Anambra State are making use of the best technology available. The average efficiency index for the processors in the industry was 0.506, implying that their output is below potential by 49.4%. The results also revealed the technology gap efficiency for the participating and non-participating processors as 0.924 and 0.983, respectively, meaning that the participants need to close an 8.0% gap, and the non-participants need to close a 2.0% gap. These gaps are caused by the high cost of processing equipment, high cost of input, and inadequate infrastructure, among others contributing factors. The paper concluded that the average meta-technical efficiency (0.498) of small-scale rice processors in Anambra State is low and needs to be improved through the provision of adequate technology, training, and infrastructure to bring the current industrial production capacity to 100.0%.

Suggested Citation

  • Chukwujekwu A. Obianefo & Ike C. Ezeano & Chinwe A. Isibor & Chinwendu E. Ahaneku, 2023. "Technology Gap Efficiency of Small-Scale Rice Processors in Anambra State, Nigeria," Sustainability, MDPI, vol. 15(6), pages 1-22, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:4840-:d:1091831
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/6/4840/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/6/4840/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    2. Lee, Lung-Fei & Tyler, William G., 1978. "The stochastic frontier production function and average efficiency : An empirical analysis," Journal of Econometrics, Elsevier, vol. 7(3), pages 385-389, April.
    3. Okeh, Okeh C. & Onwosi, Chukwudi O. & Odibo, Frederick John C., 2014. "Biogas production from rice husks generated from various rice mills in Ebonyi State, Nigeria," Renewable Energy, Elsevier, vol. 62(C), pages 204-208.
    4. Majiwa, E. & Mugodo, C., 2018. "Technical efficiency and technology gap ratios among rice farmers in Kenya," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277209, International Association of Agricultural Economists.
    5. Kumbhakar,Subal C. & Wang,Hung-Jen & Horncastle,Alan P., 2015. "A Practitioner's Guide to Stochastic Frontier Analysis Using Stata," Cambridge Books, Cambridge University Press, number 9781107029514, October.
    6. Cliff Huang & Tai-Hsin Huang & Nan-Hung Liu, 2014. "A new approach to estimating the metafrontier production function based on a stochastic frontier framework," Journal of Productivity Analysis, Springer, vol. 42(3), pages 241-254, December.
    7. Md. Abu Bakr Siddique & Md. Abdur Rouf Sarkar & Mohammad Chhiddikur Rahman & Afroza Chowdhury & Md. Shajedur Rahaman & Limon Deb, 2017. "Rice farmers technical efficiency under abiotic stresses in Bangladesh," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 7(11), pages 219-232, November.
    8. Chukwujekwu A. Obianefo & John N. Ng’ombe & Agness Mzyece & Blessing Masasi & Ngozi J. Obiekwe & Oluchi O. Anumudu, 2021. "Technical Efficiency and Technological Gaps of Rice Production in Anambra State, Nigeria," Agriculture, MDPI, vol. 11(12), pages 1-13, December.
    9. Jacob Asravor & Alexander N. Wiredu & Khalid Siddig & Edward E. Onumah, 2019. "Evaluating the Environmental-Technology Gaps of Rice Farms in Distinct Agro-Ecological Zones of Ghana," Sustainability, MDPI, vol. 11(7), pages 1-16, April.
    10. Ng'ombe, John & Kalinda, Thomson, 2015. "A Stochastic Frontier Analysis of Technical Efficiency of Maize Production Under Minimum Tillage in Zambia," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 4(2).
    11. Ehirim, Nnamdi & Onyeagocha, Stephen & Ben-Chendo, Glory & Essien, Ubon & Osuji, Emeka & Okwara, Melissa, 2016. "Farming Techniques, Environmental Challenges, and Technical Efficiency of Sweet Potato Production in Abia State, Nigeria," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 6(4), December.
    12. Diarra, Salifou Bakary & Staatz, John M. & Bingen, R. James & Dembele, Niama Nango, 1999. "The Reform Of Rice Milling And Marketing In The Office Du Niger: Catalyst For An Agricultural Success Story In Mali," Staff Paper Series 11729, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    13. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    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. Chukwujekwu A. Obianefo & John N. Ng’ombe & Agness Mzyece & Blessing Masasi & Ngozi J. Obiekwe & Oluchi O. Anumudu, 2021. "Technical Efficiency and Technological Gaps of Rice Production in Anambra State, Nigeria," Agriculture, MDPI, vol. 11(12), pages 1-13, December.
    2. Richard Adjei Dwumfour & Eric Fosu Oteng-Abayie & Emmanuel Kwasi Mensah, 2022. "Bank efficiency and the bank lending channel: new evidence," Empirical Economics, Springer, vol. 63(3), pages 1489-1542, September.
    3. Nguyen, Hoa-Thi-Minh & Do, Huong & Kompas, Tom, 2021. "Economic efficiency versus social equity: The productivity challenge for rice production in a ‘greying’ rural Vietnam," World Development, Elsevier, vol. 148(C).
    4. Soares, Pedro & Spolador, Humberto Francisco Silva, 2019. "Eficiência técnica da produção de milho no estado de São Paulo: uma abordagem por metafronteira estocástica," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 57(4), January.
    5. John N. Ng’ombe, 2017. "Technical efficiency of smallholder maize production in Zambia: a stochastic meta-frontier approach," Agrekon, Taylor & Francis Journals, vol. 56(4), pages 347-365, October.
    6. Kumar, Surender & Jain, Rakesh Kumar, 2019. "Carbon-sensitive meta-productivity growth and technological gap: An empirical analysis of Indian thermal power sector," Energy Economics, Elsevier, vol. 81(C), pages 104-116.
    7. Asravor, Jacob & Wiredu, Alexander Nimo & Zeller, Manfred, 2024. "Does integrating improved seeds with agronomic practices enhance farm performance? Evidence from rural Mozambique," 2024 Annual Meeting, July 28-30, New Orleans, LA 344063, Agricultural and Applied Economics Association.
    8. Zarkovic, Maja, 2020. "Cap-and-trade and produce at least cost? Investigating firm behaviour in the EU ETS," Working papers 2020/12, Faculty of Business and Economics - University of Basel.
    9. Toba Stephen Olasehinde & Fangbin Qiao & Shiping Mao, 2022. "Performance of Nigerian Rice Farms from 2010 to 2019: A Stochastic Metafrontier Approach," Agriculture, MDPI, vol. 12(7), pages 1-13, July.
    10. Toba Stephen Olasehinde & Fangbin Qiao & Shiping Mao, 2023. "Impact of Improved Maize Varieties on Production Efficiency in Nigeria: Separating Technology from Managerial Gaps," Agriculture, MDPI, vol. 13(3), pages 1-14, March.
    11. Abdul-Rahaman, Awal & Issahaku, Gazali & Zereyesus, Yacob A., 2021. "Improved rice variety adoption and farm production efficiency: Accounting for unobservable selection bias and technology gaps among smallholder farmers in Ghana," Technology in Society, Elsevier, vol. 64(C).
    12. Khalid Maman Waziri, 2017. "Generalized Glass Ceilings in the United States – A Stochastic Metafrontier Approach," Working Papers halshs-01569834, HAL.
    13. Jacob Asravor & Francis Tsiboe & Richard K. Asravor & Alexander N. Wiredu & Manfred Zeller, 2024. "Technology and managerial performance of farm operators by age in Ghana," Journal of Productivity Analysis, Springer, vol. 61(3), pages 279-303, June.
    14. Abebayehu Girma Geffersa & Frank Wogbe Agbola & Amir Mahmood, 2022. "Modelling technical efficiency and technology gap in smallholder maize sector in Ethiopia: accounting for farm heterogeneity," Applied Economics, Taylor & Francis Journals, vol. 54(5), pages 506-521, January.
    15. Subal C. Kumbhakar & Christopher F. Parmeter & Valentin Zelenyuk, 2022. "Stochastic Frontier Analysis: Foundations and Advances I," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 8, pages 331-370, Springer.
    16. Schalk Hans Joachim & Untiedt Gerhard & Lüschow Jörg, 1995. "Technische Effizienz, Wachstum und Konvergenz in den Arbeitsmarktregionen der Bundesrepublik Deutschland (West). Eine ökonometrische Analyse für die Verarbeitende Industrie mit einem „Frontier Product," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 214(1), pages 25-49, February.
    17. Thanh Pham Thien Nguyen & Son Hong Nghiem & Eduardo Roca & Parmendra Sharma, 2016. "Efficiency, innovation and competition: evidence from Vietnam, China and India," Empirical Economics, Springer, vol. 51(3), pages 1235-1259, November.
    18. Kodjo Adandohoin, 2021. "Tax transition in developing countries: do value added tax and excises really work?," International Economics and Economic Policy, Springer, vol. 18(2), pages 379-424, May.
    19. MAIMOUNA DIAKITE & Jean-François BRUN, 2016. "Tax Potential and Tax Effort: An Empirical Estimation for Non-Resource Tax Revenue and VAT’s Revenue," EcoMod2016 9537, EcoMod.
    20. Zhang, Hui & Zhou, Peng & Sun, Xiumei & Ni, Guanqun, 2024. "Disparities in energy efficiency and its determinants in Chinese cities: From the perspective of heterogeneity," Energy, Elsevier, vol. 289(C).

    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:gam:jsusta:v:15:y:2023:i:6:p:4840-:d:1091831. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.