Determinants of Economic Efficiency of Mushroom Production in Abia State: A Translog Stochastic Frontier Profit Function Approach

Abstract

This study employed a translog stochastic frontier profit function to measure the level and determinants of economic efficiency in Mushroom Production. A multi-stage randomised sampling technique was used in selecting 30 mushroom farmers from each of the three Agricultural Zones of Abia State. A well-structured questionnaire was used to collect input/output data and their prices using the cost route approach. The result of the analysis showed that the mean farm level economic efficiency was about 85%. The Translog stochastic profit function first order parameter depicted that profit increase with price of labour input and farm size and decreased with capitalinputs. Similarly, age, education and membership of cooperative society positively influenced efficiency.