Assessment of Cost Efficiency Among Oil Palm Fruit Processors in Southeast Nigeria
Öz
This research assessed the cost efficiency among oil palm fruit processors in Southeastern Nigeria. A multi-stage sampling technique was used to select 76 subsistence and 161 commercial oil palm processors in Enugu State, and 76 subsistence and 151 commercial oil palm processors in Anambra State, Nigeria. Primary data from cross-sectional sources were used for this study. The data were analyzed using descriptive statistics and stochastic cost efficiency frontier model. The results show that the significant factors influencing the cost efficiency of subsistence and commercial oil palm fruit processing were the cost of oil palm fruits, cost of labour, cost of water, and depreciation cost. The significant factors influencing the cost inefficiency of subsistence and commercial oil palm fruit processing were years of experience, years of formal education, income of the processors, and access to loan facilities. The estimated values of the gamma parameters of 0.4608 and 0.6761 show that 46.1% and 67.6% of the variation in the total cost of palm oil processing among the subsistence and commercial oil palm fruit processors, respectively were due to the differences in their cost efficiencies. The average cost efficiency obtained by the subsistence oil palm fruit processors was 3.1 while the average cost efficiency obtained by the commercial oil palm fruit processors was 2.6. This implies that the subsistence and commercial processors were cost inefficient operating above the cost frontier. The study recommended the formation of processing cooperatives, where they can pull resources to purchase shared modern digesters and clarifiers, thereby spreading the fixed costs and reducing the unit cost of production
Anahtar Kelimeler
Stochastic Cost Efficiency Frontier Model, Subsistence, Commercial, Technologies, Palm Oil
Kaynakça
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