Production efficiency of charcoal producers in Odeda local government area, Ogun State, Nigeria

Abstract

This study examined the production efficiency of charcoal producers in Odeda local government area of Ogun-state, Nigeria. Multistage sampling technique was adopted and data were collected from 80 respondents using structured questionnaire. Descriptive statistics was used to analyse socio-economic characteristics of the respondents and Stochastic Production Frontier (SPF) to evaluate the technical (TE), allocative (AE) and economic (EE) efficiency of the respondents and to identify factors affecting efficiency. The results revealed that the respondents were all male with mean age of 40.9 years, married- (78.8%) and average household size of 5 persons. Primary education was predominant (80%), mean years of experience (18 years), method of production was earthen only with mean household annual income of ₦717,929.38.  A total of 16 hard wood species in ten families were identified for charcoal production. Leguminosae family with five species (31%) recorded the highest number of species. The mean TE, AE and EE were 0.8136, 0.8134 and 0.9998, respectively. The SPF estimates showed that Tree volume was negatively significant (p<0.1), Labour and fuel were positively significant (p<0.01) and (p<0.05) respectively. The gamma (γ) value of 91.76% indicates variation in output due to differences in technical efficiency. In relation to AE, Cost of trees and Wage rate were positively significant (p<0.01), Cost of fuel was negatively significant (p<0.05) while the Cost of transporting logs was insignificant (p>0.1). Conclusively, there is opportunity for increasing production by 18.6% using better technique to reduce inefficiency. Forest policy should ensure conservation and sustainable production through extension services.