THE PROFIT EFFICIENCY OF MORINGA OLEIFERA PRODUCTION IN OSUN STATE, NIGERIA

Remi Adeyemo, Ayodeji Damilola Kehinde and Nafisat Oluwatayo Gbadebori

APSTRACT: Applied Studies in Agribusiness and Commerce, 2023, vol. 17, issue 2

Abstract: The Moringa plant has nutritional value and numerous medicinal benefits. However, the profit efficiency of moringa production is yet to be investigated. This study, therefore, investigated the profit efficiency of Moringa oleifera production. A multistage sampling procedure was used for selecting 150 respondents for the study. The data were analyzed using descriptive statistics, budgetary analysis, and stochastic frontier production function. The descriptive statistics revealed that many of the respondents were male (53%), married (85%), and had formal education (87%). The results further revealed average values of 45 years for age, 7 people for household size, and 0.3 ha for farm size. Moringa production had a cost-benefit ratio of ₦5.857, profit margin of ₦0.182, expense structure ratio of ₦0.107, a net return on investment of ₦4.857, rate of return of ₦5.482, and profitability ratio of ₦0.981. Results obtained from the stochastic frontier model showed that moringa farmers had an average profit efficiency of 19% in their production. The empirical results from the frontier model showed that the price of family labour, seed, pesticide, hired labour, and transport significantly influence the profit efficiency of moringa farmers. However, years of education and farm size were the major sources of profit inefficiencies among moringa farmers. This study concludes that Moringa Oleifera production is highly profitable, but producers have been unable to maximize its profit efficiency. Therefore, this study recommended that producers should improve on adding value to moringa products and extend their distribution channels considering the cost incurred on transportation.

Keywords: Agribusiness; Agricultural Finance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ags:apstra:339881

DOI: 10.22004/ag.econ.339881

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