ALLOCATIVE EFFICIENCY AND PROFITABILITY OF MAIZE PRODUCTION INPUTS IN ORU EAST LOCAL GOVERNMENT AREA OF IMO STATE, NIGERIA

Ugwumba, C.O.A.  and Omojola, J.T.

Department of Agricultural Economics and Extension

Anambra State University, Igbariam

E-mail: veecel326@yahoo.com

ABSTRACT

This study specifically investigated profitability, allocative efficiency and constraints to maize production in Oru East Local Government Area of Imo State, Nigeria. Simple random sampling technique was used to select 120 respondents. Well structured and pre-tested interview instruments were administered to the respondents to obtain data. Data were analyzed by means of descriptive statistics, budgetary method and power function model.  Results revealed that the enterprise was profitable based on the positive values of net farm income (N1,511,905) and net return on investment (0.86). Farm size, labour, fertilizer, capital and  maize seeds had allocative efficiency values of 1.39, 0.0037,-0.000008,  0.0075 and 0.0018 respectively;  implying that cost of labour, fertilizer, capital and maize seeds were over-utilized, while farm size was under-utilized. Production was most seriously constrained by inadequate extension services, lack of information on modern technologies and poor storage facilities.  Maize farmers’ problems would be ameliorated by proper implementation of the current Federal Government Extension Transformation Agenda (AETA) to make modern maize production techniques available, affordable and adoptable. This would improve efficiency of resource-use, enterprise profitability and sustainability.

Keywords: Maize, Efficiency, Profitability, Return to scale, Imo State, Nigeria