PROFIT EFFICIENCY OF SOYABEAN ENTERPRISE IN TARABA STATE, NIGERIA

Abstract

This study determined the profit efficiency of soybean enterprise in Taraba State. The specific objectives were to: analyze the performance indices of producers' in soybean enterprise, estimate cost and return from soybean enterprise, identify the determinants of profit function in soybean enterprise, assess the determinants and efficiency levels of soybean enterprise and identify the constraints to soybean enterprise in the study area. Multistage, purposive and stratified random samplings were used. Data were collected with the aid of structured questionnaire. Data were analyzed using descriptive Statistics; Stochastic Frontier
Production function and Tobit Regression. About 71.2% of the respondents invested between N1, 000 to N400,000 in the enterprise. The study revealed that soybean enterprise is a profitable venture because farmers gain 62 kobo in every naira invested. The determinants of profit efficiency in the study area were
farming experience, savings, sales, investment, cost of modern machines and distance which were positive and statistically significant at 1 and 5% respectively. The R2is 0.98 meaning that about 98% variation in the profit efficiency were explain by the explanatory variables. Also, fertilizer, labour and pesticide were
positive and significantly influenced technical efficiency. Incidence of pest and inadequate capital were the major constraint faced by farmers. Based on the finding it was recommended that farmers should be encouraged to expand their scale of production by providing them with production inputs like credit
facilities, fertilizer, and chemicals in order to have increased yield.