TECHNICAL EFFICIENCY AND ECONOMIC PERFORMANCE OF LOCUST BEAN (IRU) PRODUCERS IN EKITI STATE, NIGERIA

Abstract

Locust bean (Iru) is an important nutritional condiment of traditional dishes in Nigeria. This study estimated the technical efficiency and economic performance of locust bean producers; determined the profitability of this enterprise; identified the factors influencing the technical efficiency among locust bean producers and the constraints to locust bean production in Ekiti state. Primary data were collected through a structured questionnaire administered on 100 locust bean producers using a Multistage sampling technique. Descriptive statistics, gross margin analysis, and stochastic frontier production function were used for data analysis. The findings show that the respondents were predominantly female with a mean age of 45years.About 62 percent of the respondents had one level of education or the other while about 38% had no formal education. The average weekly revenue was N9, 614.50k. The gross margin analysis revealed that locust bean is a very lucrative enterprise with a return of N1, 394.50k in the week. However, the mean technical efficiency of locust bean producers was 0.692 while the minimum and maximum efficiency were 0.28 and 0.93 respectively. Efficiency parameters that were significant include; storage cost, cost of pot and income level of respondents. They exhibited positive sign of coefficient. Inefficiency parameters that influence productivity experienced in the business, processing technology and extension services. The major constraints were drudgery, inadequate water supply and lack of government support. It is therefore recommended that locust bean producers could form a viable cooperative so that they can pull their resources together and harness improved technologies.