Determinants of Cost Efficiency among Smallholder Maize Producers in Kano and Kaduna States, Nigeria.

Abstract

This study focused on the determinants of cost efficiency among smallholder maize growers in Kano and Kaduna States of Nigeria. The study utilized a simple random sampling approach to select 200 small-scale maize growers. Primary data from cross-sectional sources were utilized based on a well-organized questionnaire. The questionnaires were administered to the respondents with the use of well-trained enumerators and agricultural extension agents in the year 2024. The data were evaluated using descriptive statistics and a stochastic cost efficiency frontier model. The outcome shows that the mean age of maize growers was evaluated at 48, 95% Confidence Interval CI [45.6, 50.4] years. The mean maize farm size was 1.42, 95% CI [1.349, 1.49] hectares per grower, which indicates that most growers cultivated small-scale farmland. The cost of seeds, the cost of fertilizer, the cost of labour, and depreciation costs were significantly different from zero in influencing cost efficiency among maize growers at p < 0.01. The cost of agrochemicals and maize output is significantly different from zero in influencing cost efficiency among maize growers at p < 0.05. The socio-economic stimuli significantly affecting cost inefficiency among maize growers include age, farming experience, household size, and level of education. The calculated scale effect was 10.27, 95% CI [10.78, 9.7365]; the calculated scale effect is greater than one, which signifies that there are positive economies of scale. This signifies that a unit increase in the total production costs increased the total maize output by 10.27 times during the course of maize farming. The study recommends that the maize growers should form themselves into cooperative groups. This will enable them to access credit, improved maize seeds, fertilizers, agrochemicals, and other farm inputs, information, and share ideas about maize farming.