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Comunicata Scientiae 2012
Profitability of production and resource-use efficiency among ofada rice (Oryza sativa japonica) farmers in Southwest, NigeriaKeywords: gross margin , ofada rice , Oryza sativa japonica Abstract: Ofada rice has recently gained prominence and it is quickly drawing international attention sinceit has revealed a strong consumer disposition and it has been perceived to be more nourishingdue to its natural taste, a value added to this kind of rice. Nigeria has potential to produce it toself-sufficiency level but due to the inefficient use of inputs and in-availability of some inputs, thishas become a mirage. Data was obtained from 180 rice farmers selected from the rice growingareas in Ogun state, with the use of well structured questionnaire. The data collected were thenanalyzed using both descriptive and inferential statistics. The descriptive analysis showed that 70%of the farmers were males, the average age and farm size was 45years and 2.9ha, respectively.The maximum likelihood estimates of the stochastic production frontier model results showed thata unit increase in farm size, labour, seeds and chemicals used will result in extra 64.587kg, 3.98kg,0.54kg, and 2.258kg of the output, respectively. Marginal value product (MVP) to the unit prices forthese inputs was greater than one implying that all these resources were underutilized. The grossmargin analysis revealed that the profit from rice farming was N56, 082 (US$373.88) per hectare perfarmer. Farmers’ efficiency can be enhanced by increasing the area of land cultivated, labourused, quantity of seeds and chemicals used for production.
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