Drivers of Technical Efficiency in Cassava Processing in Nigeria: Implications for a Commercializing Food Sector.
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Date
2018-07-27
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Abstract
Most agriculture policies in Nigeria are aimed at integrating the rural poor into market economy.
In the last decade, Nigeria witnessed significant private and public injection of capital into the
promotion of small-medium scale cassava processing. This study uses a stochastic frontier
function and inputs/outputs data to measure technical efficiencies (TE) of 274 small-medium
cassava processing firms in Nigeria. Results showed that the cassava processing enterprises had
a mean TE of 43 percent, indicating that, a large proportion of output value (57%) is lost due to
f
irm-specific inefficiencies. Cassava processing enterprises in the north-central area of Nigeria
recorded a mean TE of 61% (highest), followed by South-east/South-west (42%) and South-south
(26%). TE values were below 80% for about 85% percent of the sampled enterprises. Technical
efficiencies were influenced by enterprise classification (small-medium, sole proprietorship or
family ownership), social factors (interaction with other actors), economic (number of products,
clients or orders received) and attendance of training workshop. It is recommended that
government and institutions with statutory role to promote agricultural value chains should
consider encouraging and promoting small-medium scale cassava processing the more with
adequate impetus. Constant training workshops to improve the skills and efficiency of the
cassava processors are also recommended.
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Abass, A., Olarinde, L., Okoruwa, V., Amaza, P., Awoyale, W., Alabi, T. & Ndavi, M. (2019). Drivers of Technical Efficiency in Cassava Processing in Nigeria: Implications for a Commercializing Food Sector. Tropicultura, 37 (2): 573. https://doi.org/10.25518/2295-8010.573.