Perceived effects of climate change on profit efficiency among small scale chili pepper marketers in Benue State, Nigeria

Abstract

In the determination of the level of efficiency of an enterprise, the role of climate change cannot be overemphasized. However, some scholars are of the view that climate change might not really affect the level of efficiency of an enterprise due to its indirect effect on the performance of an enterprise. Understanding the perception of marketers of agricultural produce about climate change in agribusiness is paramount to sustain small scale enterprises. This study sought to analyze the perceived effects of climate change on profit efficiency among small scale chili pepper marketers in Benue State, Nigeria. Data were collected with the use of structured questionnaire and analyzed using stochastic frontier production function. A combination of purposive and random sampling techniques was used to select 349 producers and marketers, 152 processors, 143 processed retailers and 145 non-processed retailers giving a total of 789 small scale chili pepper marketers from three (3) agricultural zones that make up Benue State, Nigeria. The result showed that on the average, small scale chili pepper marketers are relatively profit efficient. The results also showed that in the marketing chain, small scale processed retailers had the highest mean profit efficiency (0.86). It was therefore recommended that switching business to adapt to crop varieties (cereal crops) that are more resilient to climate change could be an opportunity to small scale chili pepper marketers struggling with chili pepper to leapfrog previous performance and become more productive. Further, the training on preservation of perishable crop should be given to chili pepper producers and marketers and non-processed retailers given that excessive rainfall decreases their profit efficiency.

ARCH-GARCH Analysis: An Approach to Determine The Price Volatility of Red Chili

“…Farmers argue that fluctuations in chili prices, including the high price of red chili, were caused by several factors, including weather, reduced numbers of farmers who grow red chili due to switching to other crops, disease and pests, and the significant import of red chili. The government needs to formulate several policies to overcome the fluctuations in red chili prices every year (Anwarudin et al, 2015;Djomo et al, 2021;Muñoz-Concha et al, 2020). First, the government needs to review the marketing aspect of growing red chili on new land in connection with the existing supply chain management.…”

Profit Efficiency, Weather Risk and Climate Adaptation Practices of Rice Farmers in Myanmar

“…The effect of weather shock is highlighted: farmers who faced yield loss due to weather shock operated at a significantly lower level of profit efficiency. Djomo et al (2021) also noted that excessive rainfall and drought can be decrease the profit efficiency of producers and marketers of chili pepper. Moreover, households with a non-farm income share also operated at a lower level of profit efficiency, indicating that the farmers had paid less attention to crop productivity than did the full-time farmers.…”

“…They reported that environmental factors such as water pollution were serious problems and negatively affected profit efficiency. Djomo et al (2021) applied the Cobb-Douglas stochastic frontier model to determine the perceived effects of climate change on profit efficiency among small-scale chili pepper marketers in Benue State, Nigeria. Their findings revealed that rainfall variability, temperature variability and drought significantly affect their profit efficiency.…”

“…The Cobb-Douglas (C-D) and translog models are popular and widely used to estimate the profit function despite their own weaknesses (Kaliranjan & Obwona, 1994). The present study is followed by Oladeebo and Oluwaranti (2012) and Djomo et al (2021) and applied the Cobb-Douglas functional form with maximum likelihood techniques to estimate the productivity of monsoon rice cultivation in the Ayeyarwady Delta, Myanmar, during 2019 crop growing season and the influencing factors of profit inefficiency among individual rice farmers. The stochastic profit frontier model is defined in Equation (3a).…”

Celebrating the Past, Present, and Future: The Case of Odumu Music and Dance Among the Idoma People

“…Presently, climate change and diverse human activities have adversely affected the natural habitat that originally provided a home to animals such as the hyena around the environment inhabited by the Idoma people. According to Djomo et al (2021Djomo et al ( :1851, studies have shown that the average temperature in Nigeria has climbed to 31.83 Celsius in 2010 from 26.74 Celsius in the 18 th century. Generally, this is attributed to global warming, whose impact is noticeable all around the globe.…”