Technical efficiency of onion production in Kebbi State: A Stochastic frontier production function approach

Abstract

This study investigates onion producers’ technical efficiency level in Kebbi State. Purposive and simple random sampling procedures were adopted in selecting 210 onion producers using structured questionnaire from seven local government areas in the state. Descriptive statistics, gross margin and stochastic frontier production models were employed in describing and analyzing the data. The results showed that producers generated an average gross revenue and gross margin of ₦1,085,692.51 and ₦700,388.33 at farm-gate price, respectively. The coefficients of farm size (0.6779), labour (0.1700) and seed (0.01011) were significantly positive in influencing the onion output, while level of education and household size significantly increased technical efficiency of producers. The technical efficiency of the pooled sample ranges from 0.13 to 0.95 and the mean technical efficiency was 0.78. Production constraints recorded were; high cost of input, pest and disease attack, poor pricing and inadequate government support. In conclusion, onion is a viable agribusiness enterprise for wealth generation and reliable means of small producers’ livelihood and lucrative business for large scale producers. The study recommends the need to identify sustainable interventions through government/nongovernmental support policies to improve input supply system, encourage adult education vide extension service and strengthening linkages among onion producers.