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Profitability of Improved Seed Adoption on Small Holders Maize Farmers in Abuja Nigeria

Uteh Akaninyene Ndem Chijioke

Business and Management Studies, 2018, vol. 4, issue 4, 71-81

Abstract: The study analysed the profitability of improved seed adoption on the profitability and technical efficiency of smallholder maize farmers in Abuja, Nigeria. Descriptive statistics were used to describe the socioeconomic characteristics, gross margin analysis was used to determine the costs and returns of maize production. The t-test was used to compare the yield of improved maize seed adopters and non-adopters. The logit regression was used to analyse the determinants of adoption. The stochastic production frontier model was used to determine the technical efficiency of IMV. The results revealed that the average age of respondents (adopters and non-adopters) was 48 years and 39 years, respectively. Furthermore, 56% and 66% were male, 75% and 93% were married with average household size of 6 and 7 persons, respectively, and majority had formal education. Adopters had a mean farm size of 1.95 ha, while non-adopters had a mean farm size of 1.76 ha. The gross margin analysis result showed the profitability index for IMV and local seed were 0.66 and 0.41, respectively. The t-test result showed that IMV had higher yield per hectare (2,713.66kg/ha) compared to local maize variety (1,281.33kg/ha). The result of maximum likelihood estimate showed that the mean technical efficiency was 0.56 and 0.49 for adopters and non-adopters, respectively. The study revealed that adopters of improved maize seed varieties earned higher profits and were more technically efficient than non-adopters. It recommended the strengthening of extension services to enhance adoption through awareness by government. Farmers should form cooperatives to enable resourceful negotiation for inputs. Also, an improvement in the research and development of high quality improved maize varieties should be encouraged.

Keywords: profitability; improved seed; adoption; maize (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:rfa:bmsjnl:v:4:y:2018:i:4:p:71-81