Economies of Scale and Cost Efficiency in Small Scale Egusi Melon Production in Bida Local Government Area of Niger State, Nigeria

Abstract

This study shows empirical findings of economies of scale and cost efficiency of small scale egusi melon production in Niger State, Nigeria, using multi-stage random sampling techniques to elicit data from 125 respondents in the study area. Findings indicates that there is relative presence of economies of scale among the respondents; an average farm in the study area produce at a minimum cost considering the size of the farm which is an indication that they operates in stage II of production surface which is an efficient stage of resource utilization. Findings were further collaborated by mean cost efficiency of 1.165 which shows that an average farm in the study area is about 17% above the frontier cost, indicating that they are relatively efficient in allocating their scarce resources. The significance of the estimated gamma coefficient (0.65) indicate the presence of cost inefficiency effects in egusi melon production