Technical efficiency of traditional and improved oil palm fruit processing in Enugu and Anambra States, Nigeria

Abstract

This study investigated technical efficiency of traditional and improved oil palm fruits processing in Enugu and Anambra States, Nigeria. A multi-stage sampling technique was used to select 464 oil palm fruit processors. Primary data were collected via well-structured questionnaire. The data were analyzed using descriptive statistics, and stochastic production frontier model. The result shows that the mean age, years of school attendance, and household sizes for traditional oil palm fruits processors were 40 years, 10 years, and 7, respectively. The mean age, years of school attendance, and household sizes for improved oil palm processors were 43 years, 12 years, and 7, respectively. In the technical efficiency component, the significant factors influencing the output in litres of traditional and improved oil palm fruits processed include quantity of oil palm fruits, quantity of water, quantity of firewood/fuel, capital inputs, and labour use. The age, household size, access to loan facilities were significantly from zero in influencing the technical inefficiency of traditional and improved oil palm fruits processing, while years of experience significantly influence the technical inefficiency of traditional oil palm fruits processing. The mean technical efficiency scores of traditional and improved oil palm fruits processors were 0.8270 and 0.8718, this leaves 17.3% and 12.82% for improvement. The study recommended that oil palm fruit processors organize themselves into cooperative groups or clusters to enable them to access improved processing equipment directly from manufacturers and to process for their members at low cost. Keywords: stochastic production frontier model, technical efficiency, oil palm fruits processing, traditional, improved, seeds, Nigeria