Stochastic production function and costs-returns analyses of apiarists in Adamawa State, Nigeria

M.M. Audu, M.R. Ja’afar-Furo*, B.H. Gabdo

Department of Agricultural Economics and Extension, Faculty of Agriculture, Adamawa State University, PMB 25, Mubi, Nigeria

(Manuscript received 23 September 2019; accepted for publication 14 February 2020)

Abstract. This study assessed apiculture enterprise to determine the output elasticity of production, returns to scale, technical efficiency and profitability in Adamawa State, Nigeria. A total of four agricultural zones out of six, and 108 apiarists were selected through purposive and simple random methods, respectively. Descriptive statistics, stochastic frontier production function and budgetary technique were used in the analyses of data. Findings revealed that all (100%) the respondents were males within the age range of 21-30 years (44.44%). The majority of apiarists (87.0%) were married with household size of 1-10 persons (77.78%) and 50.0% of them had secondary school education. A larger proportion (37.0%) had between 6 and 10 years of beekeeping experience with 41.67% earning monthly income of N11000 (USD30.8) – N20000 (USD56.0) from other sources. Further, the findings revealed that labor and number of hives had reassuring influence on the industry, while age, education and experience could be used to reduce inefficiency in the industry to improve efficiency status. The apiarists also had mean technical efficiency of 89.9%, while the inefficiency estimate was only 10.1%. In terms of profitability, beekeeping in the study area was found to have had a high gross margin of N16800.00 (USD47.0) and net farm income of N15225.97 (USD42.6) for every beehive in a cropping season. The major constraints to beekeeping reported in the area included beehive crops theft, high propensity of bees’ stings, inadequacy of finance, rampant bush burning and deforestation, among others. It was concluded that beekeeping in the study area was found to be profitable and technically efficient. Improving beekeeping business in the area, among other things, would require its modernization and involvement of female participants, provision of soft credit facilities and enactment of stringent forestry laws to check unwholesome forestry practices.