Comparison of Technical Efficiency across Scale of Paddy Processing in Adamawa State, Nigeria
- August 29, 2020
- Posted by: RSIS Team
- Categories: IJRIAS, Management
International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume V, Issue IV, July 2020 | ISSN 2454-6194
Comparison of Technical Efficiency across Scale of Paddy Processing in Adamawa State, Nigeria
Gabdo, B. H., Ntasimda, S.*, Madu, U. A.
Department of Agricultural Economics and Extension, Adamawa State University, P. M. B. 25, Mubi, Adamawa State, Nigeria
*Corresponding Author
Abstract:- This study analyzes technical efficiency across small, medium and large scale paddy processors in Adamawa State, Nigeria. Multi-stage sampling techniques was employed to select one hundred and sixty respondents with the aid of well-structured questionnaire. Data Envelopment Analysis (DEA) was used to analyze the data collected. On average, the large scale was adjudged the most efficient processors, then the medium scale, while the small scale was found to be the least efficient processors. Results further show the presence of both managerial and scale inefficiency in the small scale paddy processing, while the medium and large scale paddy processing both harbor only scale inefficiency with no evidence of managerial inefficiency. In terms of scale efficiency, on average, the small scale processors are more efficient, followed by the large scale processors, while the medium scale processors are the least efficient. The return to scale assumption indicates that 100% of the processors in both medium and large scale operate at increasing returns to scale, while in the small scale, 91% and 9% of the processors operates at increasing and decreasing returns to scale respectively. Up-scaling and down-scaling of paddy processing are recommended to curb the menace of scale inefficiency. On the other hand, good management practices such as choice of kernel size, ensuring maturity of kernels and imbibing modern parboiling skills among others will help curb the menace of managerial inefficiency. These remedial measures will together enhance frontier paddy processing in Adamawa State.
Keywords: Paddy, Processing, Parboiling, Milling, Efficiency
