Abstraction

The survey analyzed the efficiency of resources used among sugarcane husbandmans in the North-eastern zone of Adamawa province Nigeria. The informations used for the survey were collected from 160 husbandmans in three local authorities countries with the assistance of structured questionnaires utilizing multi-stage sampling technique. The information generated were analyzed utilizing stochastic frontier production map theoretical account. The consequences revealed that the discrepancy parametric quantities, that is, the sigma squared ( ) and the gamma ( ? ) were statically important at ( P & A ; lt ; 0.01 ) degree each. The coefficients of farm size ( 0.902 ) , fertiliser ( 0.019 ) , and fuel consumed ( 0.049 ) were statically important at ( P & A ; lt ; 0.01 ) each and are positive, while seed cane ( 0.036 ) was important at ( P & A ; lt ; 0.05 ) as the a priori outlook. The end product degree of the husbandmans can be increased by increasing the sum of the variable inputs mentioned above, all things being equal. While at the same time cut downing the inordinate manual labor employed, to be substituted by a labour saving-technology such as tractors made available at low-cost hiring monetary value. The empirical consequences besides revealed that about 93.75 % of the sampled husbandmans were found to be more than 70 % technically efficient while the average efficiency was 87 % . The jobs of sugar cane production mentioned among the husbandmans include ; relentless onslaught of plague and diseases, high cost of labor, high cost of farm inputs, hapless selling agreement and extension services web. Policy recommendations were directed towards integrated pest and diseases control, proviso of low-cost and timely inputs, proviso of low-cost tractor hiring services and revival of extension services among others.

Key words ; Efficiency, Resources usage, Sugarcane husbandmans, Adamawa, Nigeria.

Introduction

Sugarcane ( Saccharum spp ) is said to hold become established as a domestic garden harvest around 8000BC by Neolithic horticulturalist in what is now New Guinea. It was subsequently carried to China, India and East Pacific Islands ; and to Africa by the Arabs. The harvest is widely distributed within the Torrid Zones and sub-tropics covering about 74 states between 40oN and 32.5oS embracing about half of the Earth ( Aikulola, 1978 ; Faccionier, 1993 ) .

In modern agribusiness, sugar cane has been identified as one of the most of import commercial harvests grown. The major bring forthing states of the universe are ; Brazil, India, China, Pakistan, Colombia and Thailand. Others are Mexico Egypt European Union and South Africa ( Simond, 1996 ; Busari, 2004 ) . Harmonizing Tyler to ( 2008 ) the universe end product of sugar in 2004/2005 season was 140.7 million metric tons with merely about 34 % exported which indicated that bulk of the trade good was consumed locally.

Brazil is the universe ‘s largest manufacturer of sugar cane. The existent roar in bio fuel from sugar cane production in the state has brought economic success narrative and a great challenge to the Organisation of Petroleum Exporting Countries ( OPEC ) as rival market has been created. Out of the 17.2 billion gallons of universe ethyl alcohol production by 2012, Brazil entirely is expected to bring forth about 40 % ( 6.88 billion gallons ) . In 2004, Brazil exported 2.4 billion liters ( 638 million gallons ) to the United States of America, Japan, Sweden and South Korea ( Whelan, 2004 ) .

In Africa, merely few states are committed to the success narrative of sugar cane industry. South Africa is of class the largest in footings of sugar cane production on the continent and the thirteenth universe manufacturer. It has 50,000 registered out agriculturists bring forthing about 22 million metric tons of sugar cane yearly. The state is besides committed to bio fuel production, and it is expected that in the following 10-15 old ages the state will bring forth 7.3 billion liters of bio fuel ( Morris, 2008 ) . Harmonizing to Austery ( 2006 ) , in 2004 19 % of the value of export in Mauritius came from sugar cane, while 5 % of the state ‘s Gross Domestic Products ( GDP ) besides came from the same trade good, more so, about 45 % of the state ‘s entire country of Island is devoted to turning of sugar cane and besides 90 % of the cultivable land. Zimbabwe has been reported to bring forth 600,000 metric tons of sugar yearly from 45,000 hour angle before ictus of the land in the state in 2002 ( Tyler, 2008 ) .

The Nigeria sugar cane industry is non a success narrative yet. The sub- sector is mostly under developed with untapped resources and potencies. The two major sugar mills at Bacita, Nigeria Sugar Company in kwara province and Savannah Sugar Company Limited at Numan Adamawa province were established in 1961 and 1977 severally. The mills have a combined capacity of 105,000 metric metric tons of sugar per annum or about 10 % of the state ‘s demand. However sugar end product has been hovering about 50,000 metric tons yearly which has been less than 5 % of the state ‘s demand ( Anon, 2003 ) . Harmonizing to Akobundu ( 1987 ) out of the 25-30,000 hectares put under sugar cane in Nigeria merely 12,000 hour angles are under industrial cane production the balance belongs to little scale husbandmans bring forthing on 0.2-0.5 hour angle for masticating. Most of these husbandmans have small resources, and use simple farm tools such as hoes, axe, cutlass and ox-drawn Big Dipper for cultivation. They besides have small or no support for betterment while sugar cane dependant industries have sprung up in their 1000s. Importing of the trade good hence becomes necessary at the disbursal of our foreign modesty.

It is against this background that this survey seek to analyze the proficient efficiency of resource usage among the sugar cane husbandmans in the survey country, analyze the determiners of proficient efficiency of the respondent and to proffer some policy recommendations based on the findings

Conceptual frame work

The survey of productive efficiency started with the pioneering works 0f farrel in 1957 ( Ojo and Omodu, 2000 ) . Technical efficiency has been described as a major componenent of productiveness which itself is a step of public presentation.Three types of efficiencies were identified, these are proficient, allocative and economic efficiencies. Technical efficiency is the accomplishment of the maximal possible end product from a given measure of input under a given engineering. It is the attainment of production end without wastage ( Jondrow, et al. , 1982 ; Amaza and Maurice, 2005 ) . As observed by Abdourahmane, et al. , ( 2001 ) economic efficiency is the ability to bring forth a given degree of end product utilizing cost minimizing input ratios. Allocative efficiency has to make with extent to which husbandmans ‘ make efficient determination by utilizing inputs up to degree at which their fringy part value is equal to the factor cost. Therefore the economic efficiency combines both proficient and allocative efficiencies.

Harmonizing to Yusuf and Adenegan, ( 2008 ) a technically efficient house operates on the production frontier degree while technically inefficient house operates below frontier degree. Therefore maximal end product can be achieved by increasing end product with the same volume of inputs or utilizing less input to bring forth the same sum of end product. Efficiency betterment has now become an of import factor in any economic system. As stated by Ogunjobi ( 1999 ) efficiency measuring is of import for some grounds ; first it is a success index and public presentation step by which production units are evaluated. Second, it is merely measuring efficiency and dividing its effects from the consequence of production environment that one can research hypothesis refering the beginnings of efficiency derived function. Third ; designation of beginning of inefficiency is of import to the establishment of public and private policies designed to better public presentation. This will better mechanism for supervising public presentation of the production system. It is the procedure of transforming production factor into end product ( Olayemi, 2004 ) .

The critical function of the efficiency in agricultural end product has been widely recognised by research workers and policy shapers. It has remained an of import country for research in both the developed and the development states, peculiarly in the economic systems of the development states where the resources are meager and chance for developing and following better engineerings are dwindling ( Ali and chaudhary, 1990 ) . An economically efficient input-output combination would be on both the frontier map and the enlargement way ( Ogundari and Ojo, 2006 ) .

Harmonizing to Erhabour and Omokaro ( 2008 ) productiveness and efficiency can be measured in four different ways which include the usage of:

Least Squares Econometric Model ( LSEPM )

Entire Factor Production Indices ( TFPI )

Data Envelopment Analysis ( DEA )

Stochastic Frontier Production Function ( SFPF )

The Centre for efficiency and productiveness analysis ( CEPA, 2003 ) recommended the usage of DEA or SFPF in mensurating the efficiency of production due to the in-adequacies associated with the usage of the LSEPM and TFPI. The DEA is non parametric method necessitating the usage of additive programming while SFPF is parametric and affecting the usage of econometric methods. The advantage of the SFPF is that it account for the noise or perturbation job frequently encountered in informations aggregation.

Methodology

The Study Area

The survey was carried out in the north-eastern portion of Adamawa State which is besides the zone one of the Adamawa State Agricultural Development Programme ( ADADP ) . The part comprises of five local authorities countries which include ; Maiha, Madagali, Michika, Mubi North and Mubi South. The country lies between latitude 9o30 ‘ and 11 & A ; deg ; 45 ‘ East of Greenwich Meridian. Bounded by Hong and Song Local Government Areas in the West and south, Borno State in the North, and in the East by Cameroon Republic. It has a land mass of 4,728km2 with a population of 681,353 ( Adebayo, 2004 ; NPC, 2007 ) .

The average one-year rainfall ranges from 900mm to 1050mm with distinguishable prohibitionists season which begins in October and terminals in April while moisture season begins in May and ends in September or sometimes October. The part is besides located within the Sudan Savannah belt of the Nigeria ‘s flora zones ( Adebayo, 2004 ) .

Sampling process and informations aggregation

A multi-stage sampling technique was employed in the choice of the respondents. In the first phase was choice of ADP Zone 1 which is located in the North-Eastern portion of the province. Adamawa State has been divided into four ADP Zones viz. , Mubi 1, Gombi 2, Guyuk 3 and Mayo-Belwa 4. The choice of Zone 1 was purposive because of its prominence in sugar cane production in the province. In the 2nd phase was the random choice of the three local authorities countries ( Maiha, Mubi North and Madagli Local Government Areas ) out of the five local authorities countries. The 3rd phase was purposive choice of the cells or communities turning sugar cane. In the concluding phase was random choice of the respondents from list of sugar cane husbandmans obtained from their assorted leaders and ADP Zonal Office proportionate to the size of the husbandmans in each small town. A sum of 180 husbandmans were selected and administered structured questionnaires, out of which 160 were valid and informations respect agriculture activities and socio-economic features of the husbandmans were obtained for the survey. It captured 2008/2009 agriculture season and the study was carried out between January and March 2010.

Data Analytical Technique

The tool employed for the analysis was stochastic frontier production map which specifies end product ( Y ) as a map of input ( X ) and a perturbation term E. ( Adebayo, 2007 ) . It is expressed as:

Yi = degree Fahrenheit ( Xi, ? ) + ( Vi – Ui ) …….. ( 1 )

Where:

Yi = is the end product of the ith farm

Eleven = is a vector of input measures of the ith farm.

? = is a vector of unknown parametric quantities to be estimated

E1 = composite mistake term defined as

E1 = Vi – Ui.

A Cobb – Douglas Stochastic Production Frontier Model was used for this survey and presented as follows:

LnY = ?o + ?1LnX1 + ?2LnX2 + ?3LnX3 + ?4LnX4 + ?5LnX5 + ?6LnX6 + ?7LnX7 + Vi – Ui ……… ( 3 )

Where:

Y = Output of sugar cane in Kg

X1 = Size of farm in hectares

X2 = Planting stuffs in kilogram

X3 = Hired labour man-days

X4 = Family labour man-days

X5 = Pesticides in litres

X6 = Amount of fertilizer used kilogram

X7 = Fueling of H2O pump in litres

?o, ?1 – ?7 = parametric quantities to be estimated

Vi = random variables that can non be influenced by the husbandman

Ui = non-negative random variables called proficient inefficiency consequence

I = 1, 2, 3, 4 … N farms

The coefficients of X1, X2 … X7 are expected to hold positive influence on sugar cane end product.

The proficient efficiency for single farm was computed as an index and the average proficient efficiency for the socio-economic factors that influence the proficient efficiency of the sugar cane husbandmans were identified and the parametric quantities of the variables estimated utilizing the Coelli and Battese ( 1996 ) inefficiency theoretical account. The theoretical account assumes that the inefficiency consequence Ui is independently distributed and follows a abbreviated ( at nothing ) normal distribution, with average ui and discrepancy ?2. The theoretical account is as stated:

Ui = ?0 + ?1Z1 + ?2Z2 + ?3Z3 + ?4Z4 + ?5Z5 + ….. ( 4 )

Where:

Ui = Technical inefficiency

Z1 = Age of the husbandman in old ages

Z2 = Household size

Z3 = Number of old ages of formal instruction

Z4 = Extension visit ( Dummy, yes =1 no =0 )

Z5= Membership of association ( Dummy, yes =1 no = 0 )

?0 – ?5 = parametric quantities to be estimated

The marks of coefficients in the inefficiency theoretical account are interpreted in the opposite manner such that a negative mark means that the variable additions efficiency and frailty versa ( Adebayo, 2007 ) .

Consequences and Discussion

Consequences of the Frontier Production Function Analysis

Empirical consequences of the stochastic frontier production are presented in Table 1. In the tabular array are estimations of the parametric quantities for the frontier production map and discrepancy of the parametric quantities of the theoretical account. The discrepancy of the parametric quantities for the frontier production is statistically important at ( P & A ; lt ; 0.01 ) . The estimation of the gamma ( ? ) which is 0.984 ( 98.4 % ) shows sum of fluctuation in the proficient efficiency of the husbandmans. The estimation of the sigma squared ( ) shows a good tantrum and the rightness of the specified distributional premises of the composite mistake term.

Four of the coefficients of the variables had the expected mark and are important at assorted degrees. Three variables had unexpected mark of negative and are undistinguished. The coefficient of land variable is positive and was statistically important at ( P & A ; lt ; 0.01 ) . This consequence is in consonant rhyme with the findings of Shehu et al. , ( 2007 ) . The significance of the variable is as a consequence of its importance in harvest production, all other factors may be available but if land is absent, production can non take topographic point. Addition in the size of land therefore, ( Ceteris paribus ) will take to increase in the output of sugar cane.

As expected the coefficient of the seed cane was positive and important at ( P & A ; lt ; 0.05 ) . Its significance indicates the necessity of seed for extension. The positive influence means addition in the measure of seed rate used on the field provided that it does non take to competition the higher the output. The coefficients of household and hired labors were negative and undistinguished reverse to the apriori outlook. This signifies that as the husbandmans employ more services of labour the lesser their benefit. This may impute to the inordinate usage of manual labor in the survey country. A common characteristic of agribusiness in developing states like Nigeria. The Pesticides coefficient is besides negative and non important. This could be as a consequence of over usage of the variable that may non be economically justified. The consequence is besides in consonant rhyme with the work of Owa et Al ( 2007 ) on manioc husbandmans in Jos East Local Government Area, Nigeria.

Furthermore, the coefficient of fertiliser was positive and important at ( P & A ; lt ; 0.01 ) as expected. The favorable influence of the variable is non unconnected with its importance in supplementing the foods demands of the harvests which invariably improves productiveness of the land. Increase in the application of the variable therefore leads to increased output, all things being equal. The coefficient of fuelling H2O pump used in irrigation is besides positive and important at ( P & A ; lt ; 0.01 ) . This consequence confirms the importance of wet for the harvest since the extension is done during the dry season. Adequate irrigation of the Fieldss becomes necessary for good harvest constitution, development and growing and hence the increased end product.

Beginnings of Technical Inefficiencies

Table 2 presents the beginnings of disparity in proficient efficiency among the sugar cane husbandmans. The mark of the theoretical account in the inefficiency theoretical account are interpreted in the opposite manner such that a negative mark means that the variable additions efficiency and frailty versa.

The consequences of the inefficiency theoretical account showed that the coefficient of age variable is positive but statistically important at ( P & A ; lt ; 0.01 ) .The significance of the variable shows the importance of grownup in harvest direction, nevertheless as the husbandman progress in age his efficiency decreases because his capableness to make vigorous work diminutions. This determination is similar to the findings of Adebayo and Lawal ( 2000 ) on Yola metropolitan husbandmans where they found out that their income lessening with addition in age. The estimated coefficient of family size was negative and important at ( P & A ; lt ; 0.01 ) . The negative mark of the coefficient is in conformance with outlook and implied that as more grownup individual ‘s additions in a family the efficiency besides increases. This is because grownup individuals provide quality labor to transport out seasonably hard undertaking involved in sugar cane production and hence increases the efficiency of the husbandmans.

The predicted coefficient of instruction was positive and non important. A possible account to this could be that most Nigerians link instruction with white neckband occupations, so as more of the husbandmans become educated the lesser they pay attending to farm activities in hunt for better chances. In the same vena, Omotesho et Al ( 2008 ) carried out similar surveies on youth-in-Agriculture in Ondo State found out that instruction reduces efficiency among the young person. The likely ground given was as more people become educated the more they develop lower status composite for agribusiness.

The coefficient of extension contact was positive but important at ( P

& A ; lt ; 0.1 ) the significance of the variable suggests the importance of the factor in agricultural inventions as a agency of bettering end product. The positive mark nevertheless means the variable reduces efficiency of the husbandmans. The possible account to this could be as consequence of hapless extension services rendered which does non run into up the current challenges of the husbandmans. Yusuf and Adenekan ( 2008 ) reported that since the backdown of the World Bank in helping Agricultural Development Projects ( ADPs ) in Nigeria the services of extension have no longer been effectual. Similarly, Omotesho et al. , ( 2008 ) carried out similar surveies reported that extension contact reduces efficiency among youth involved in the agribusiness in Ondo State. The ground advanced was that there is deficiency of trust among participants for authority of information received from some of the extension agents.

The coefficient of rank of concerted societies was positive but statistically important at ( P & A ; lt ; 0.10 ) . The significance of the variable indicates its importance in agricultural production since through co-ops husbandmans can easy hold entree to recognition installations. The negative consequence of the variable factor on efficiency of the husbandmans may impute to hapless administration of the co-ops ; corruptness and political influence which have affected the aims of the societies, hence deficiency of trust exist among participants. This determination is in consonant rhyme with the work of Pur et al. , ( 2006 ) carried out on the public presentation of co-ops in rural economic activities in Yobe State. They found out that they were more jobs recorded than success in the operations of the concerted societies.

Technical Efficiency Estimates of the Farmers

Table 3 nowadayss proficient efficiency indices derived from the MLE consequences of the stochastic frontier production map. The consequences showed that the TE of the sampled husbandmans is less than one, that is, no husbandman operated on maximal efficiency hence fluctuations exist among them. The predicted TE among the husbandmans ranged from 0.13 to 0.98 while the average TE was 0.87. Furthermore, the consequences besides showed that 93.74 % of the respondents operated above 70 % of their TE. Some 6.26 % operated between 12.6 – 70 % of their TE. These suggest that the husbandmans have possible to better by 13 % to run into up with the frontier degree which can be achieved through resource allotment with no extra cost. The graph ( fig.1.1 ) represent the image of the fluctuation in TE among the sugar cane husbandmans the survey country.

Decision

The survey has revealed the being of fluctuation in proficient efficiency ( TE ) among sugar cane husbandmans in mubi Region due to the presence of proficient inefficiency in sugar cane production. The minimal and maximal TE among the husbandmans was 13 % and 98 % severally while the average TE was 87 % . The consequences which indicated that the efficiency of the husbandmans can be increased by 13 % for maximal end product. About 93.74 % of the husbandmans were more than 70 % technically efficient. Empirical consequences besides revealed that the framers end product can be increased by application of more fertiliser, increased usage of seed rate, equal irrigation of the sugar cane Fieldss and increased farm size. More so cut downing the sum of inordinate labor to be substituted by labour salvaging engineering such as tractor hiring at low-cost monetary values. The consequences of inefficiency theoretical account show that family size significantly increases the husbandmans TE while age instruction degree extension contact and rank of association were important at assorted degrees but decreases the husbandmans TE.

Based on the consequences of the findings hence, the following have been proffered to relieve the jobs and promote sugar cane production in the survey country.

The inordinate usage of manual labor can be replaced with a labour salvaging engineering such as tractors and other farm machineries supplied by authorities at the low-cost hiring monetary values.

The subsidy and handiness of farm inputs such as fertilizer, pesticides, improved seed cane etc and their subsequent faithful distribution through organized local co-ops will non merely promote the husbandmans but more engagement of the young person.

A mini-processing works to be sited in the Northeast sugar cane bring forthing zone like that of Lau in Taraba State so that the cane produced can be processed for sugar and besides for the husbandmans to hold a guaranteed minimal monetary value for their green goods.

The extension services which are the beginning of husbandmans ‘ agricultural inventions are at the brink of prostration. To salvage our agricultural production the province in coaction with NGOs like West African Cotton ( WACOTT ) , and the federal authorities should re-activate the Agricultural Development Programmes ( ADPs ) every bit good as research establishments through proper support.

The constrictions involved in procuring loans or recognition installations by ordinary husbandmans from the loaning bureaus should be reviewed in the husbandmans favour so that they can be encouraged to bring forth more.

Formation of co-ops besides is indispensable for the husbandmans so as to ease easy entree to inputs and other utile educative information.

There should be an incorporate plague and diseases control, which is a combination of good cultural patterns, chemical, physical and perchance biological control with minimal perturbation to the natural environment. This can be achieved though intensive extension instruction.