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Resource Use Efficiency of Smallholder Producers Cooperative in Nigeria Cover

Resource Use Efficiency of Smallholder Producers Cooperative in Nigeria

Open Access
|Oct 2020

Abstract

The objective of this study is to analyse efficiency in resource use by cooperative producers with specialization in vegetable production and estimate the costs and return to such enterprises under cooperative conditions. Marginal physical product (MPP), marginal value product (MVP), and marginal factor costs (MFC) in addition to budgetary analysis were utilised to analyse the primary data collected through the questionnaire. The enterprise efficiency level is 0.06, the benefit-cost ratio is 1.06 while the expense structure ratio 0.37. The MVP results showed that all the resources used in production are under-utilized suggesting inefficiency of resource use by the cooperative producers. The result can be of advantage to producers if an appropriate understanding of cooperative principles is put into perspective in production-related decisions. Improvement of the level of utilization of input resources should be of interest to the government and related stakeholders.

DOI: https://doi.org/10.1515/mosr-2020-0007 | Journal eISSN: 2335-8750 | Journal ISSN: 1392-1142
Language: English
Page range: 113 - 125
Submitted on: Jan 6, 2020
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Accepted on: Jul 15, 2020
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Published on: Oct 14, 2020
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2020 Nurudeen Afolabi Sofoluwe, Akeem Abiade Tijani, published by Vytautas Magnus University, Faculty of Economics and Management
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.