African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6730

Full Length Research Paper

Economics of scale and cost efficiency in small scale maize production in Mubi North Local Government in Adamawa State, Nigeria

Dia Y. Z.1*, J. W. Zalkuwi2 and O. Gwandi3
  1Department of Agricultural Extension, Adamawa State College of Agriculture, P. M. B. 2088, Ganye, Nigeria. 2Departments of Agricultural Economics and Extension, Adamawa State University, P. M. B. 25, Mubi, Nigeria. 3School of Agriculture, Federal Polytechnic P. M. B. 25, Mubi, Adamawa State, Nigeria.
Email: [email protected]

  •  Accepted: 27 September 2010
  •  Published: 04 October 2010


This study presents economics of scale and cost efficiency of small scale production of maize in Mubi North Local Government in Adamawa state, Nigeria. A multi stage sampling techniques was used to select 180 farmers in the study area. The results shows that maize farming in the study area is profitable and Economics of Scale was obtained as 1.252 (ES>1), hence economics of scale exists. Results of the stochastic frontier cost function showed that variance parameter gamma (γ) and sigma (σ2) are both significant at 1% level. Parameter of estimate indicated positive relationship and significance at 1% level for fertilizer, herbicides, seeds and hired labour. Mean cost efficiency index was 1.04, slightly above frontier cost indicating that they are efficient in allocating their scarce resources. 

Key words: Economics of scale, stochastic frontier cost function, cost efficiency, small scale maize production, Mubi north L.G.