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Resource Use Efficiency of Smallholder Producers Cooperative in Nigeria

Author

Listed:
  • Sofoluwe Nurudeen Afolabi

    (PhD, lecturer, cooperative and rural development; Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria, P.O.Box, 2323, Sapon, Abeokuta, Nigeria. Phone: +2348059874022.)

  • Tijani Akeem Abiade

    (PhD, professor, Department of Agricultural Economics. Obafemi Awolowo University, Ile-Ife, Osun State, Nigeria. Phone: +2348034076709.)

Abstract

The objective of this study is to analyse efficiency in resource use by cooperative producers with specialization in vegetable production and estimate the costs and return to such enterprises under cooperative conditions. Marginal physical product (MPP), marginal value product (MVP), and marginal factor costs (MFC) in addition to budgetary analysis were utilised to analyse the primary data collected through the questionnaire. The enterprise efficiency level is 0.06, the benefit-cost ratio is 1.06 while the expense structure ratio 0.37. The MVP results showed that all the resources used in production are under-utilized suggesting inefficiency of resource use by the cooperative producers. The result can be of advantage to producers if an appropriate understanding of cooperative principles is put into perspective in production-related decisions. Improvement of the level of utilization of input resources should be of interest to the government and related stakeholders.

Suggested Citation

  • Sofoluwe Nurudeen Afolabi & Tijani Akeem Abiade, 2020. "Resource Use Efficiency of Smallholder Producers Cooperative in Nigeria," Management of Organizations: Systematic Research, Sciendo, vol. 83(1), pages 113-125, June.
    • Handle: RePEc:vrs:morgsr:v:83:y:2020:i:1:p:113-125:n:7
    DOI: 10.1515/mosr-2020-0007
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    References listed on IDEAS

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