Efficiency Of Maize Production Research Articles

A Stochastic Frontier Analysis of Technical Efficiency of Maize Production Under Minimum Tillage in Zambia

<p>Minimum tillage and other conservation agriculture practices are not only associated with income gains but are also claimed to be the panacea to the declining agricultural productivity and soil degradation problems in Africa and across the world. The few studies on technical efficiency related to the agricultural sector performance in Zambia have not attempted to determine how technically efficient smallholder farmers that produce maize under minimum tillage are. This study used stochastic frontier analysis based on both the half-normal and exponential model distributions on 2008 cross-sectional nationally representative data of 160 smallholder maize farm households that adopted minimum tillage in Zambia. Results indicate that maize farmers face increasing returns to scale (1.074) implying that there were opportunities for them to improve their technical efficiency as they were operating in stage I of their production functions. The half-normal and exponential model distributions indicate average technical efficiency scores of 60 and 71.7 percent, respectively. Their respective lowest efficiency scores were 9.3 and 8.5 percent. The highest efficiency scores for the half-normal and exponential model distributions were 89.3 and 90.9 percent. Maximum likelihood estimation results show that marital status, level of education of household head, square of household size, off farm income, agro-ecological region III, distance to vehicular road and access to loans are statistically significant factors that affect technical efficiency of smallholder maize farmers that practice minimum tillage in Zambia. The study calls for increased infrastructural development through construction of improved road network, schools and colleges in remote areas as a means to increasing accesss to knowledge and other agricultural services in order to enhance their technical efficiency levels. It also recommends promotion of minimum tillage practices in recommended agro-ecological regions to improve their technical efficiency. The study further acclaims for increased access to loans by smallholder maize farmers that practice minimum tillage as this would in one way induce them to invest in improved varieties and equipment that would help enhance their technical efficiency in Zambia.</p>

English

This study examined the technical efficiency of maize production in Ogun State, Nigeria. Primary data were collected for this study using a multistage sampling technique to select 100 maize farmers from the study area. The data were analysed using descriptive statistics, gross margin analysis and stochastic production frontier. The socio-economic characteristics of respondents as evident from the data analysis revealed that 73% were males with an average age of 50.1 years. Most (85%) of them were married with average household size of 6 people. Also, 89.0% had below secondary school education and 84.8% were full time farmers while 55.0% were engaged in inter-cropping activities. The mean total variable cost per hectare was estimated as ₦109,599.17 per year while the mean total revenue per hectare was ₦111,436.00. The gross margin per hectare was estimated as ₦1, 836.83. The significant variables affecting maize production were seeds (α0.05), herbicide (α0.10), labour (α0.01), and farm size (α0.05), while the factors affecting inefficiency were household size (α0.05) and educational level (α0.01). The study recommended that provision should be made by governments and other stakeholders in the agricultural sector to provide farmers with access to affordable inputs such as seed, herbicides as well as making provision for alternative source of family labour.     Key words: Technical efficiency, maize production, Ogun State, Nigeria. &nbsp

Analysis of Technical Efficiency of Small Holder Maize Growing Farmers of Horo Guduru Wollega Zone, Ethiopia: A Stochastic Frontier Approach

The objective of this study was to examine the level of technical efficiency of smallholder maize producers and identify its determinants in Horo Guduru Wollega zone of Oromia Regional State, Ethiopia. A Cobb-Douglass stochastic production function model was used for the analysis. To specify technical inefficiency effects of socioeconomic variables, Maximum Likelihood Estimation (MLE) technique using data collected from 120 randomly selected sample farmers in 2011 was applied. The MLE results reveal that farm size under maize cultivation, chemical fertilizer (DAP) and maize seed are the major factors that are associated with changes in the maize output. The effect of land area on output is positive and the coefficient is found to be significant, implying the economies of scale. The test result indicates that there is inefficiency in the production of maize in the study area. The relative deviation from the frontier due to inefficiency is 85 percent. The average estimated technical efficiency for smallholder maize producers ranges from 0.06 to 0.92 with a mean technical efficiency of 0.66 (66%). The analysis also reveals that the educational level of the farmer, age of household head, land fragmentation, extension services, engagement in off-farm/non-farm activities, and total land holding of the farmer are the major socioeconomic factors influencing farmers’ technical efficiency and maize output. The implication of the study is that technical efficiency in maize production in the study area could be increased by 34 percent through better use of available resources, given the current state of technology.Keywords: Food security, Maize, Technical Efficiency, Stochastic Frontier Analysis, Horo Guduru Wollega

Economic Efficiency of Maize Production in Swaziland: The Case of Hhohho, Manzini and Shiselweni Regions

The study used a sample of 188 maize farmers to determine the economic efficiency of maize production in Swaziland. Descriptive statistics, Cobb-Douglas production function and Tobit regression were used to analyse the data. The results indicated technical efficiency of 64.7% suggesting that farmers could still improve the technical efficiency by 35.3%. While, allocative efficiency was 99.52%, suggesting that farmers were able to use minimum costs to get a given level of output. In terms of economic efficiency, farmers were 64.3% efficient. They were able to use minimum inputs and at minimum costs for a given level of output. However, farmers could still increase their economic efficiency by 35.7%. Technical Efficiency was affected by formal education (p<0.01), and household size (p<0.10, while Allocative efficiency was affected by formal education (p<0.10) and gender (p<0.05). Economic efficiency was affected by household size (p<0.10). The study has shown that maize farmers were relatively economically efficient; hence the null hypotheses (1. Maize farmers are technically inefficient, 2. Maize farmers are allocatively inefficient) were rejected in favour of the alternative. However famers can still improve economic efficiency by improving their technical efficiency. The study recommends that farmers should improve their technical efficiency by increasing productivity, and increasing amount of fertilizer applied per ha. There is a need for government to subsidize inputs for farmers and to continue with subsidizing the tractor hire services.

Stochastic Frontier Analysis of the Technical Efficiency of Smallholder Maize Farmers in Central Province, Zambia

Maize is the main staple food and cornerstone of Zambia’s agricultural economy and as such, high productivity and efficiency in its production are critical to food security and poverty reduction in the country. This paper estimates the technical efficiency of maize producers in Zambia using Stochastic Frontier Analysis (SFA) and also determines the factors which influence technical efficiency in maize production. Primary data from 400 households in the Central Province of Zambia were used in this study. Results show that there exists opportunities to increase technical efficiency from the present level of inputs. The average technical efficiency was at 50%, with a minimum of 2% and a maximum of 84%. The distribution of the technical efficiency is such that 14% of the farmers have efficiency scores that are less than 30% while 46% of the farmers have technical scores above 50%, and 14% have technical efficiency scores above 70%. Maximum likelihood results showed that the age of a farmer, use of certified hybrid seed, access to loans and extension advice and off-farm income influence technical efficiency. The study recommends Government and other maize stakeholders to devise strategies for improving access to credit and extension services and promoting use of certified hybrid seed as a way to improve the technical efficiency of maize producers in Zambia.

Understanding biophysical and socio-economic determinants of maize (Zea mays L.) yield variability in eastern India

The aim of this paper was to investigate the key factors limiting maize (Zea mays L.) productivity in eastern India to develop effective crop and nutrient management strategies to reduce yield gap. A series of farm surveys was conducted in two distinct agro-ecological zones of eastern India to evaluate the importance of crop management and structural constraints for maize productivity in a range of socio-economic settings prevalent in smallholder farms. Surveys revealed yield gap and yield variations among farms across growing seasons. Lower yields of farmers were mainly associated with farmer's ethnic origin, availability of family labor, land ownership, legumes in cropping sequence, irrigation constraints, seed type, optimal plant population, labor and capital investment, and use of organic manure. These constraints varied strongly between sites as well as growing seasons. Stochastic Frontier Analysis suggested intensification of farm input use and removal of socio-economic and structural constraints for increasing efficiency in maize production. The use of multivariate classification and regression tree analysis revealed that maize yield was affected by multiple and interacting production constraints, differentiating the surveyed farms in six distinct resource groups. These farm types lend scope for introducing typology-specific crop management practices through appropriate participatory on-farm evaluation/trials. Summarily, this research indicated that interacting production constraints should be addressed simultaneously, considering the need of different farm types, if significant productivity improvements are to be achieved. This will be, however, more challenging for less endowed farms due to lack of social and financial capital to improve management intensity.A typology-specific farm support strategy may be formulated to offset this lack of entitlement among resource-poor farmers.

Emergy analysis of grain production systems on large-scale farms in the North China Plain based on LCA

Traditionally, primary grain production systems in China have been on a small scale and are associated with high costs and low labor productivity. Therefore, the substitution of small-scale farming with large-scale farming has been discussed in recent years. The North China Plain (NCP) is one of the primary grain production areas in China, and the winter wheat–summer maize double-cropping system dominates the region. Emergy evaluation based on life cycle assessment (LCA) was introduced in a farm case study to explore the ecological and economic effects of the wheat–maize double-cropping system on large-scale grain production compared with small-scale production. The results indicated that the emergy efficiency of maize production on the large-scale farm was 67.4–88.5% higher than that of common maize production systems, and the emergy efficiency of wheat production in the same farm decreased by 23.5–43.0% compared to other wheat production systems. The emergy sustainability index (ESI) of the double-cropping system was 64.0–84.5% lower than that reported by household farms. This is caused by large-scale farming requiring enormous emergy inputs from irrigation, fertilizers, and labor at the pre-sowing and growth stages of wheat production. Nevertheless, the scenario analysis results showed that the emergy efficiency and ESI of wheat production could be improved by 14.7–59.1% and 18.2–123.3%, respectively, using appropriate water, nutrient, and agronomic management measures. We found that the emergy efficiency of wheat production in this large-scale farm was 41.5% higher than in household farms in the same area if comprehensive improvement measures were applied. In conclusion, the ESI value of the double-cropping system in the NCP needs to be modified to increase the emergy efficiency of large-scale grain production farms. If this is accomplished, the large-scale farming pattern may be applicable for grain production in the NCP.

Technical Efficiency of Maize Production in Nigeria: Parametric and Non-Parametric Approach

The study was carried out to provide empirical evidence on technical efficiency of maize production in Nigeria using parametric and non-parametric approaches. The study employed annual secondary data on maize production in Nigeria from 1971 to 2010.Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) were used to estimate the technical efficiency of maize production. The results revealed that, the mean technical efficiency scores were 64.1%, 77.8% and 87.7% for technical efficiency under stochastic frontier analysis, technical efficiency of DEA constant return to scale and technical efficiency of DEA variable return to scale assumptions, respectively. These showed that the efficiency scores obtained from DEA are higher than those obtained from SFA. The results implied that, the country can expand its scope of output production by 35.5%, 22.2% and 12.3% for technical efficiency under stochastic frontier analysis, data envelopment analysis constant return to scale and variable return to scale, respectively. It is concluded that under the two methods used farmers can still expand their scope of output production through appropriate combination and use of production inputs at the given technology.

Technical Efficiency in Maize Production and its Determinants: A Survey of Farms Across Agro Ecological Zones in Northern Nigeria

Most researches on agriculture focused on how to achieve certain level of yield. However, few researches consider rational resource allocation to improve efficiency. Considering the need to increase agricultural productivity through proper utilization of resources, this study measured the technical efficiency of maize production in northern Nigeria and identified the socioeconomic factors that determined technical efficiency in different agro ecological zones. The study was based on the conceptual framework that there is a relationship between input use and inefficiency in maize production in the area. Respondents were surveyed and data on input use, cost of production and yield were obtained. Stochastic frontier production function and Tobit models were used to analyze the data. The findings supported the conceptual framework that there is technical inefficiency in the use of inputs and certain socioeconomic factors contributed to inefficiency. The main contribution of the study is in measuring the technical efficiency of maize production from various States and modeling agro ecological zones to observe the impact of variation in climate and production practices on the technical inefficiency. The implication for the study is that farmers and policy-makers need to be rational on the use of inputs to achieve high level of technical efficiency.

English

At the onset of climate change, the adoption of soil and water conservation (SWC) techniques in Africa sub of the Sahara has become even more crucial. The study aimed at estimating the determinants and effects of SWC adoption. The data was obtained from the Ghana Agriculture Production Survey (GAPS), a national level survey conducted by Ghana’s Ministry of Food and Agriculture with technical and financial support from the International Food Policy Research Institute (IFPRI). A total sample size of 1,530 farm households selected from 20 districts across Ghana was used. The Poisson model was employed to estimate the determinants of adoption of SWC technology while the stochastic frontier model was used to analyze the effects of SWC technology adoption on technical efficiency. The study found that SWC adoption significantly affected technical efficiency in maize production. Significant policy variables that were found to positively influence the adoption of SWC techniques included credit, farm size, group membership and proximity to input sale points. Also, credit, education and extension services significantly influenced farmers’ technical efficiency. There is the need for a holist approach to supporting farmers. In general, access to education, extension services and credit must be stepped up. Farmers must also be supported to form farm groups as a viable source of farm labour. Key words: Adoption, poisson model, technical efficiency, soil and water conservation.

Efficiency Analysis of the Sub-Saharan African small-scale Agriculture: A Review of Literature on Technical Efficiency of Maize Production

Increasingly, maize is becoming a staple food for many Sub-Saharan Africa (SSA) countries, and hence, it is regarded important in mitigating increasing incidences of hunger and famine in the region. This article reviews and compares literature related to farm level technical efficiency of small-scale maize production among countries of the SSA. A total of 17 studies from 11 different countries were examined. At least 2 studies related to small-scale maize farmers' technical efficiency were drawn from 6 countries, East African region being the most represented. Presentations of discussions were divided into three regions namely the West Africa, the East Africa, and the Southern Africa regions, respectively. Maize productivity in the Sub-Saharan region seem to be low, South Africa scoring only 4.37 tonnes/ha of maize far less than the potential grain yield of maize ranging between 7 tonnes/ha to 12 tonnes/ha. This prompts the region to import more grains to meet its domestic demand. The average technical efficiency (TE) index from all the studies reviewed is 70%. Although South Africa as a country had the highest average score of technical efficiency index (98%), West Africa as a region had the highest score of 82%, followed by Southern Africa region with 72%, and East African region scored only 57% on average. Overall technical efficiency scores suggest that there is considerable room to maximize agricultural output with the available resources and without changing the existing technologies. All reviewed studies sought to explain socioeconomic factors responsible for farm level variation in TE. Family farm labour (household size), availability of maize markets, improved seed variety, use of agro-chemical, access to farm credit, off-farm incomes and group membership were key outstanding socioeconomic factors that had a positive and significant impact on technical efficiency in the SSA region. For increased maize output and reduced budgets on maize imports, the region needs to focus and catalyse policies related to strengthening research and dissemination of technologies on maize breeding, labour saving technologies, growth in agro- industry, strengthening farmer cooperatives and maize markets, and strengthening of farmers' savings and credit facilities.

Productivity and efficiency analysis of maize under conservation agriculture in Zimbabwe

This study assesses the productivity and efficiency of maize production under conservation agriculture (CA). The analysis is based on a three year (2008–2010) panel sample of small holder farming households across 15 rural districts in Zimbabwe. We make a comparison of CA with alternative conventional farming methods. Our empirical strategy consists of two methods. First, using a fixed effects model, we estimate maize production functions and derive technical change estimates under CA and conventional farming. Second, we estimate a joint stochastic production frontier to compare productivity and technical efficiency between CA and conventional farming. Under CA, technical progress has been land-saving but seed and fertilizer-using, while it has been land-using but seed-saving in conventional farming. Lastly, the results of the efficiency analysis show that that farmers produce 39% more in CA compared with conventional farming, but technical efficiency levels are essentially equal in both technologies. Overall, the results show significant yield gains in CA practices and significant contributions to food production. CA is land-saving, and this is an important issue for land constrained farmers because they can still have viable food production on smaller area. However, high labor and fertilizer demands in CA present some problems in adoption amongst resource-constrained farmers.

Economic efficiency of maize production in Yola North Local Government area of Adamawa State, Nigeria

This paper presents empirical evidence on the input-output relationship and the efficiency of resource use in maize production in Yola North Local Government Area of Adamawa state. A simple random sampling technique was employed and 120 maize farmers were selected from a population of 364. Data were analyzed using regression model. The production function analysis in the form of Cobb-Douglass production function was found very suitable for the analysis hence was selected as the best fit. The results showed that three of the inputs namely, fertilizer, seed and land were statistically significant at ñ . 0.05 and 85% of the variation in maize yield was accounted for by the inputs included in the model. Similarly, the efficiency ratio computed showed that land, seed and fertilizer had MVP/MFC ratio greater than unity implying that the inputs were underutilized and output could be increased by increasing the levels of their utilization. The elasticity of production was greater than 1.00 which implied increasing return to scale. Finally, the study observed that the problems faced by maize farmers were, financial constraints, poor land tenure system, inadequate fertilizer, unavailability of extension service and improved seed.Key word: Elasticity, marginal value product, marginal factor cost, input-output.

Technical efficiency of maize production in Northern Ghana

The ability of maize farmers in Ghana to increase yield levels and attain sustainable production depends on efficient farm practices, hence technical efficiency. This study applied the stochastic frontier methodology to examine the technical efficiency of maize production for the 2011/2012 cropping season. Multi-stage sampling procedure was used to obtain 360 maize households for the study. The determinants of maize output in northern Ghana were farm size, seed, fertilizer and weedicides. The mean technical efficiency estimate was 74% with minimum and maximum values of 12 and 98%, respectively. Agricultural mechanization, experience and gender statistically influenced technical efficiency. The Agricultural Mechanization Services Enterprise Centres programme of the Ministry of Food and Agriculture should be scaled-up to increase access to farm tractor for agricultural mechanization services in order to increase farmers’ production efficiency. Similarly, maize production could improve if younger farmers learn from the accumulated knowledge of experienced farmers. Policies which would stress gender equality as regards access to economic resources, education, information and decision-making would help develop self-confidence in women.

Economic Analysis of Factors Affecting Technical Efficiency of Smallholders Maize Production on Rwanda

This study was conducted in Musanze and Bugesera districts of Rwanda .The objective were to estimate the level of technical efficiency in maize production. The study also attempted to determine some socio-economic characteristics which influence technical efficiency in maize production. It used primary and secondary data. Primary data were collected using questionnaire from random sample of 276 farmers, and it covered the socio-economic characteristics of farmers. Secondary data were collected from different sources, e.g., Ministry of Agriculture and livestock, records, books, reports and internet. The Stochastic Production Frontier (SPF) analysis was used to estimate the technical efficiency of producing maize, and to determine the factors behind inefficiency such as age, educational level, marital status, family size, main occupation, type of seeds, and extension services. Also, descriptive statistics were used to analyze the socio-economic characteristics of farmers. The results indicated that the mean technical efficiency for maize production in both districts is 27% which means that farmers can increase their output by 34%, through better use of available resources and existing technology if they are to be technically efficient. The study concluded that age, educational level and access to credit were significant variables leading to technical inefficiency in Rwanda. On the other hand, marital status, family size, main occupation, type of seeds, and extension services, had no significant impact on farmers' inefficiency. To improve technical efficiency for maize production in the Rwanda, the study recommended improvement in education level of the farmers and availability of funds in the optimum time. Key words : maize Productivity; Technical efficiency; stochastic frontier production

English

&nbsp; Maize farming in Swaziland is divided into subsistence farming on Swazi Nation Land (SNL) and commercial farming on Title Deed Land (TDL). Maize production on SNL accounts for only 10% of total agricultural output in Swaziland. While almost all households in SNL produce maize, the country has never reached self-sufficient levels in maize production. For the past 40 years, Swaziland has not been able to meet the population&rsquo;s maize requirements. Currently, the domestic shortfalls of maize are covered by imports through the National Maize Corporation.&nbsp;Swaziland continues to experience a downward trend on maize production, while maize demand has been increasing. This study was aimed at estimating technical efficiency of maize production and determining the factors affecting technical efficiency in Swaziland. The stochastic frontier approach was used to estimate the technical efficiency of 127 farmers and the two-limit Tobit model was used to determine the factors affecting technical efficiency of the farmers. The results revealed that there is a wide variability in the production of maize since technical efficiency ranged from 14.5 to 93.3% with a mean of 80.0%. The most important contributors to the maize production process were the amount of seeds, fertilizer, pesticides and labour used per hectare. Technical efficiency was found to be positively associated with farmers&rsquo; age, having off-farm income, farmers&rsquo; experience, intercropping and use of hybrid seeds. The gamma, (&gamma;), was 68% and significant at 1% indicating that the variation in maize output was due to factors within the control of the farmers. It is recommended that the government needs to provide input subsidies so that farmers can use more inputs to improve their technical efficiency. &nbsp; Key words:&nbsp;Technical efficiency, maize production, stochastic frontier function, Cobb-Douglas production.

Estimation of farm level technical efficiency in small scale maize production in the Mfantseman Municipality in the Central Region of Ghana: A stochastic frontier approach

The primary objective of the study was to estimate the levels of technical efficiency in small scale maize production in the Mfantseman Municipality of Ghana using the Stochastic Frontier Approach. The study also attempted to determine some socio-economic characteristics and management practices which influence technical efficiency in maize production. Responsiveness of yield to production inputs was also estimated by computing input elasticities. The marginal value product for fertilizer, labor and seed were also calculated. Finally, the marginal physical products, average physical products, relative efficiency of resource use and the returns to scale of input use were calculated. Results indicated that the mean technical efficiency of small scale maize production in the study area is 58%; however, this ranges from 17 to 99%. There is distinct and inter gender variability in technical efficiency in the maize producing villages. In addition, the number of years of school the farmer has had in formal education, age of the farmer, household size, and off – farm income activities of the farmer impact on technical efficiency. The estimated marginal physical products showed that, ceteris paribus, each additional unit use of maize seed increased output by 31 kg (0.31 bags). Fertilizer also increased output by 12 kg (0.12 bags) and labor increased output by 29 kg (0.29 bags). Lastly the estimated return to scale is 1.49 indicating increasing returns to scale of maize production in the study area. Key words: Stochastic, production, frontier, technical efficiency, Mfantseman.

Technical efficiency of maize production in Oyo state

Using a cross sectional data obtained through a multistage sampling technique this study estimates the technical efficiency of maize producing-farmers in Oyo State, Nigeria and further examined the factors that determines the differential in efficiency index. A multistage sampling technique was used to select 120 maize farmers in the study area. Data were collected and subjected to inferential statistics; stochastic frontier production model was used in the analysis to determine the relationship between the maize output and the level of input used in the study area. The empirical results revealed that farm size and Seed were statistically significant at 10 and 1% level respectively in the study area. The estimated gamma parameter (i§) of 0.12 in the study area, indicates that 12% of the total variation in maize output is due to the technical inefficiencies. The mean technical efficiency (χ) was 0.961 while the return to scale (RTS) was 0.587 in the study, it was therefore concluded that there is scope for increasing maize production by 0.39% with the present technology. Therefore the study confirmed that more land can still be open for maize production in the area with the current level of input used. Key words: Technical efficiency, maize production, Oyo State, stochastic production frontier.

Profitability And Resource Use Efficiency In Maize Production In Kontagora Local Government Area, Niger State, Nigeria

The study examined profitability and resource-use efficiency in Maize Production in Kontagora Local Government Area of Niger State, Nigeria during 2007 cropping season. Primary data were collected and analyzed using farm budgeting techniques and Production Function Analysis. Results indicatedthat farmers realized and average farm income and gross margin of N242, 114.00 and N 269,862.78 respectively whose equivalents in US Dollars stood at US $2,029.80 and US $2,262,43 respectively as at the time this study was carried out. The result of the allocative efficiency index indicated that farmsize , labour and fertilizer were over utilized, while other inputs and capital inputs were under utilized. It is recommended that surplus labour should be channeled into other income generating ventures during off-peak periods of labour demand.

Cost efficiency estimates of maize production in Nepal: a case study of the Chitwan district

This study was carried out to analyze the cost efficiency of maize production in the Chitwan district, Nepal with a view to predict economic efficiencies using stochastic frontier cost function. The primary data were collected from 180 maize farmers representing 12 village development committees (VDCs) including one municipality of the district during May–June 2005 for the cropping year 2004–2005. Among various factors, use of manure accounted the highest share in the production cost followed by labour and tractor costs. The maximum-likelihood (ML) estimates of the parameters revealed that estimated coefficients of cost of tractor, animal power, labour, fertilizer, manure, seed and maize output gave positive coefficients and were significant at 5% level. Further, quantitative estimates obtained from the cost function shows the mean cost efficiency of 1.634 indicating that an average maize farms from the study incurred about 63% costs above the frontier cost-an indication of inefficiency. Also, the significant years of schooling of the household head and maize area in the inefficiency model indicated the positive effect of these factors on cost efficiency of the farms. From the analysis of scale effect among maize farms, it was revealed that the maize farms experienced an increasing return to scale, that is, the output increased more proportionately than the total production cost.