K.A. Oluyole, J.M. Usman, O.A. Oni, O.O. Oduwole
Journal of Finance and Economics. 2013, 1(1), 8-10DOI:
Abstract: The study assessed the input use efficiency of cocoa farmers in Nigeria. Simple random sampling technique was used to select 90 cocoa farmers from the state. Structured questionnaire was used to collect information from the respondents. Empirical analysis revealed that cocoa production is profitable with average gross revenue, average gross margin and average net farm income of N722,827, N613,335 and N602,152 respectively. Cost of chemicals, cost of labour, cost of nylon, cost of cutlass and cost of sprayer are the critical cost items in cocoa production. The elasticity of production for cost of chemicals, cost of labour, cost of nylon, cost of cutlass and cost of sprayer were 78.5%, 57.1%, 28.2%, 31.6% and 42.2% respectively indicating that it is the cost of fungicide that is most responsive. Maginal Value Product (MVP) for the cost of chemicals, cost of labour, cost of nylon, cost of cutlass and cost of sprayer were greater than their Maginal Factor Cost (MFC) connoting that cocoa farmers were under-utilising these inputs. The study concluded that cocoa farmers were inefficient in resource utilization and recommended that the quantity of these inputs should be increased to achieve efficiency.