A translog stochastic frontier analysis of plot size and cost inefficiencyamong smallholder cassava farmers in south-east agro-ecological zone of Nigeria

Abstract

A stochastic frontier translog cost function model was used to measure the level of cost efficiency and its determinants in small-holder cassava production in South-east Agro-Ecological Zone, Nigeria. A multi-stage random sampling technique was used to select 320 cassava farmers in 2008. The parameters of the stochastic frontier cost function were estimated using the maximum likelihood method. The result of the analysis shows that individual farm level cost efficiency was about 69%. The study found age and farm size to be negatively and significantly related to cost efficiency at 1.0%. Farming experience and membership of cooperative societies had a positive relationship with cost efficiency. There is need for policies aimed at encouraging the youths who are agile and stronger as well as the experienced to increase production. Land re-distribution policies are advocated to make lands available to the small-holder farmers who form the bulk of the farming population.Keywords: Translog stochastic frontier, plot size, cost inefficiency.