Profit Efficiency and Profit Progress among Small Scale Fish Farmers in Niger State, Nigeria: MLE Econometric Profit Frontier Function Approach

Sadiq, M.S.; Singh, Inderjit; Suleiman, Aminu; Isah, M. A.; Umar, Malikah; Maude, M.A.; Lawal, A. T.; Sallawu, Halima

doi:10.5376/ija.2015.05.0045

Cited by 5 publications

(4 citation statements)

References 6 publications

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“…Furthermore, the positive coefficient of property, plant, and equipment (PP&E), i.e., 0.09, indicated that plantation companies need to increase their expenditure on fixed inputs, such as machinery, vehicles (tractors, or lorry), buildings, etc., to generate a long-term economic profit. The results are parallel with previous literature that found that fixed input (land area) was essential to increase farmers' profit efficiency by expanding the land area for plantation (Kaka et al, 2016;Sadiq et al, 2015;Rachmina et al, 2014). Table 5 estimates the inefficiency factors that explain profit efficiency in plantation companies.…”

Section: Resultssupporting

confidence: 89%

Effects of Extended Value Chain Activities on Profit Efficiency in Malaysian Plantation Companies

WAN AZIZI,

Ahmad,

Tey

2023

MMJ

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The palm oil industry in Malaysia is the main driver of Malaysia’s agricultural sector due to its significant contribution. High demandand attractive earnings of palm oil have attracted high participation from plantation companies in this industry. Therefore, this studyaimed to assess the level of profit efficiency of plantation companies involved in different value chain activities, as well as the factors that influence the profit efficiency of these plantation companies. A total of 40 Malaysian plantation companies listed in Bursa Malaysia from 2000 to 2018 with different value chain activities were examined using panel data. The evaluation of profit efficiency was based on data analysis, which included working capital costs, labour costs, and property, plant, and equipment (PP&E) costs that affect the plantation companies’ profit function. The parametric approach, also known as Stochastic Frontier Analysis (SFA), was used to assessthe profit efficiency of these plantation companies empirically. The results revealed that the average profit efficiency of 40 plantationcompanies was 60.3 percent, implying that an estimated 39.7 percent of profit was lost due to a combination of technical inefficiencies and allocative inefficiencies in plantation companies. Other findings were based on value chain activity categories (pure upstream plantation companies and downstream integrated plantation companies), whereby downstream integrated plantation companies had the highest profit efficiency (76.6%) when compared to the pure upstream plantation companies (54.2%). As a result, the study showed that plantation companies engaged in extended value chain activities were more profit efficient than plantation companies that did not extend their value chain activities (referring to pure upstream plantation companies).

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Section: Resultssupporting

confidence: 89%

Effects of Extended Value Chain Activities on Profit Efficiency in Malaysian Plantation Companies

WAN AZIZI,

Ahmad,

Tey

2023

MMJ

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“…This wide variation may be due to low output prices and the imperfect condition of input markets in the study area. The mean efficiency level indicates that there exists room for more profit gain by improving the efficiencies (Sadiq et al, 2015).…”

Section: ) Cost Of Inorganic Fertilizer (X5)mentioning

confidence: 99%

Rice-Fish Farming System in Lamongan, East Java, Indonesia: Swot and Profit Efficiency Analysis

Nurhidayati

Huang

Hanani

et al. 2020

AGRISE

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The agricultural sector needs to make breakthroughs in the design of production systems to improve farmers' income and operation efficiency. One of the ways is to redesign rice production methods by applying a rice-fish farming system. Lamongan has a different system that combines rice cultivation with vannamei shrimp. Due to the limitation of farmers, the efficiency of the system has not yet reached the optimal level. This study describes the rice-fish farming system, identifies the SWOT and generated the grand strategy matrix, and analyzed the profit efficiency using Stochastic Frontier Analysis. The results showed that the strengths and opportunities are more influential, where the position was in the quadrant I; which means it is in a good strategic position. Meanwhile, the input factors which significantly influence profit where the cost of paddy seed, the cost of organic fertilizer, the cost of inorganic fertilizer, the cost of pesticide, and the cost of shrimp feed. The profit efficiency analysis shows that respondents engaged in this system did not efficiently allocate inputs and production cost factors appropriately. The average profit efficiency level was 78.05 percent; it means that there were still opportunities to increase profits from the system by 21.5 percent.

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“…Veerina et al [17] noted that factors such as literacy have a role in influencing yields through production decisions. There is a general consensus that education has a positive effect on agricultural productivity [18,19], a high rate of illiteracy resulting in low farm efficiency [20,21]. Atapattu [22] stated that fish farmers should be properly educated with respect to the importance of management.…”

Section: Socioeconomic Characteristicsmentioning

confidence: 99%

Profitability Analysis of Fish Farming in Niger State, Nigeria

Gomna¹,

Pawa²,

Dan-Azumi³

et al. 2020

IJFSA

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In the study of aquaculture, much attention has been focused on bio-technical aspects. Economic research is often neglected by researchers and fish farmers. This paper examined the profitability of fish farming in Niger State, Nigeria. Data was collected by means of semi-structured questionnaire administered to 90 fish farmers randomly selected from three Agricultural zones in Niger State. The study revealed that fish farming is profitable in Niger State as a result of positive net returns, high rate of incomes and benefit-cost ratios and, therefore capable of creating employment, generating income and improving the standard of living of the people. Fish farming should therefore be encouraged and supported. Support could be in the form of technical assistance or subsidies.

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Profit Efficiency and Profit Progress among Small Scale Fish Farmers in Niger State, Nigeria: MLE Econometric Profit Frontier Function Approach

Cited by 5 publications

References 6 publications

Effects of Extended Value Chain Activities on Profit Efficiency in Malaysian Plantation Companies

Effects of Extended Value Chain Activities on Profit Efficiency in Malaysian Plantation Companies

Rice-Fish Farming System in Lamongan, East Java, Indonesia: Swot and Profit Efficiency Analysis

Profitability Analysis of Fish Farming in Niger State, Nigeria

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