AKSU Journal of Agricultural Economics, Extension and Rural Development
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
Abstract
The study determined the efficiency of value addition in plantain enterprises in Imo State. The study specifically describes the socio-economic characteristic of the respondent in the study area, estimate the costs and returns of plantain processors in the study area, identified the determinants of technical efficiencies of plantain processors in the study area. The result of the stochastic production frontier indicated that quantity of plantain fruit (X1) was 0.256 (p<0.01), frying oil (X2) was 0.559 (p<0.01), packaging material (X4) was 0.133 (p<0.05) and had positive and significant influence on the technical efficiency of plantain processors. To improve the output of processed plantain, there is need to increase the use of more plantain fruits, frying oil and packaging materials. This will in-turn ensure that the processors realize their main objective of profit maximization. The coefficients of labor (X3) and fuel (X5) were; 0.006 and 0.026 respectively. This point to the fact that these inputs were over-utilized among the chip processors. The result of the technical efficiency score showed that 46.5% of the processors are below the frontier level, while 53.5% are above frontier levels. Factors such as Age (0.027) and Household size, (0.108) had positive influence on the processors’ technical efficiency, while educational status (-0.029) and processing experience (– 0.02) had negative influence on technical efficiency of the processors. It was recommended that plantain processors should acquire adequate training and relevant formal education to enhance their technical efficiency. They should reduce the use of labour (particularly hired labour) which have been found to be over-utilized in the study.