Maximum likelihood estimation technique of grasscutter (Thryonomys swinderianus) production in Osun State, Nigeria

Abstract

The study estimated quantitatively the technical efficiency of production and its determinants in grasscutter enterprise in Osun State, Nigeria, using a stochastic production frontier function approach. A total of Seventy-two grasscutter farmers across the three agricultural zones were selected using a simple random sampling technique. Data were collected on the socio-economic characteristics and other variables of interest such as prices of production inputs and output, through a well-structured questionnaire. The Maximum Likelihood Cobb-Douglas estimation procedure was used. Careful analysis revealed that labour, concentrates, capital and farm size were identified as the major determinants of the total output of grasscutter enterprise in the study area. The study also showed that membership of cooperative, access to credit, level of education and extension contact significantly influenced efficiency level in the study area. The maximum technical efficiency attained by the farmers was 93% while the minimum technical efficiency was found to be 45%. The mean technical efficiency (MTE) was 86%. The sum of output elasticities which denotes returns to scale was established at 1.04 signifying increased returns to scale. In essence, the enterprise did not attain maximum production frontier. Based on these findings, it is recommended that efficiency could be increased through better use of available resources, access to credit facilities and assisting and encouraging the farmers in joining cooperative societies so as to have access to loans. Also, educational programmes should be organized to sensitize farmers more on how to improve on their efficiency level.