METHODOLOGY OF PROFITABILITY AND TECHNICAL EFFICIENCY OF CASSAVA PRODUCTION IN NDOKWA LOCAL GOVERNMENT AREA OF DELTA STATE

Area of Study

          The study was carried out in Ndokwa West Local Government Area of Delta State. Ndokwa West is one of the twenty five (25) Local Government Areas in Delta State, with it’s headquarter situated in Kwale. The local government area is made up of seven (7) autonomous communities. These include: Abbi, Emu, Ogume, Utagba, Uno, Onicha Ukwuani and Ndemili communities. It is located within Latitude 6.480E and Longitude 5.450N.

          It has a population 149,325 people (National population census, 2006) and an area of 816 km².  The Local Government Area has natural vegetation that supports

agricultural activities such as crop production, fishing etc. thus; agriculture is the major activities of the people of this area. The principle crops grown in this area are: cassava, yam, potato, plantain among others.

Sampling Techniques

          A multiple-stage random sampling techniques will be employed in selecting the respondents. Stage I: involves the random selection of five (5) autonomous communities out of the seven (7) communities. Stage II: Out of the five (5) autonomous communities randomly selected, two (2) villages will be randomly selected, making a total of 10 villages.

          Stage III: Out of the 10 villages that will be randomly selected, twelve (12) cassava farmers will be randomly selected. Thus, a total of 120 cassava farmers will be randomly selected for the study.

Data Collection

          Primary data was used for the study. The data was collected through the use of structured questionnaire that was administered to the 120 randomly selected respondents.

Analytical Techniques

          Data used for the study was analyzed using descriptive statistics such as mean, frequency distribution tables, percentages and inferential statistics. Descriptive statistics was used to analyze objective i, and ii, objective iii was analyzed using multiple regression analysis while objective iv was achieved using gross margin analysis and objective v was analyzed using mean score derived from 4 point likert scale.

Model Specification for objective iii

          Multiple Regression Model

Y =    f (X1, X2, X3, X4, X5) – – – – – implicit form

Y =    a0 + a1x1 a2X2, + a3X3, + a4X4, X4, +a5X5, + et —- Explicit stochastic form

Where

Y=total output of cassava (tonnes)

X1 = farm size (ha)

X2 = labour used in man-days

X3 = fertilizer used (kg)

X4 = cassava cuttings (kg)

X5 = herbicide used (litre)

et = Stochastic Error term

a1 – a5 = Parameters estimate

a0 = constant

Technical efficiency of each parameter was estimated using an index with formula Rxi = biPy/Pxi,

Where

pxi = unit price of input (N),

Py = unit price of output (N),

bi = marginal productivity of the input and

Rxi = Technical efficiency index of the input.

Model for Gross Margin for which objective of iv.

The model used for the estimation of the gross margin according to Olukosi and Ernabor (1988) as

GM = TR – TVC (GI – TVC)

Gross margin = Total revenue – Total variable cost

٢ = GM – TFC

Profit = Gross margin – Total fixed cost

Where

GM = Gross Margin

TR = Total Revenue

GI = Gross income

TVC = Total variable cost

٢ = Profit

Model for Likert scale for objective v.

Xs     =       ∑fn

                     Nr  

 Where:

Xs     =       mean

       =       Summation

Fn     =       frequency of respondents responses

Nr     =       number of response of respondent

Test of Hypothesis

The null hypothesis that states that there is no significance difference between inputs and outputs of cassava production was tested using f-test.

The formula is stated thus as:

F-cal = R2 (N-K)

             1-R2 (K-1)

Where;

R2 = co-efficient of determination

N = sample size

K = number of variables

Decision Rule

If F-cal > F-tab, reject the null hypothesis otherwise accept the alternative.

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