Abstract

Ogunniyi, L.T., Adepoju, A.A., Olagunju, F.I., Ojedokun, I.K. And Ganiyu, M.O

Data Envelopment Analysis (DEA) is a non parametric method of measuring the efficiency of a decision making unit (DMU), first introduced into Operations Research literature by Charnes et al., 1978. This study used primary data with the aid of structured questionnaire to elicit information on relevant variables such as the inputs and output and their prices. Data envelopment analysis was used to measure the profit efficiency while ordinary least square (OLS) was then used to determine producer characteristics that are likely to lead to higher profit efficiencies and findings compared on the gender basis. The average profit efficiency score was 0.20 and 0.16 for male and female farmers respectively implying that the average male and female farmers producing 20 and 16% of yam could improve profit by 80 and 84% respectively by improving their technical and allocative efficiency. Estimation of profit – loss given prices and fixed factor endowments revealed that yam farmers are losing to the tune of N33, 811.69k, N 35,341.88k and N 39,086.66k for male, female and pooled data respectively. The determinants of profit loss were examined and significance evidence was found that education, experience, farm size and extension visit determined the variation in profit loss among yam farmers in the study area.