A comparative analysis of the profitability and technical efficiency of vegetable production under two farming systems in Nigeria

Abstract

Increasing agricultural productivity enhanced by versatile production systems is critical for sustainable food security and economic development. The study aims to compare the profitability and technical efficiency of vegetable production and factors influencing the technical efficiency of vegetable production between inorganic and organic farming systems in Imo State, Nigeria. Primary data were collected using structured questionnaires comprising 100 vegetable farmers using a multistage sampling procedure. The budgetary analysis and stochastic production frontier model were used to estimate the profitability and the technical efficiencies of the enterprise. An average farmer realized N277,445.24 and N190,506.04 per hectare as profit from inorganic and organic vegetable production and can potentially earn N4.40 and N2.89 on every Naira invested, respectively. However, the inorganic farming system achieved significantly higher returns than the organic farming system. The mean technical efficiencies for organic and inorganic vegetable farmers were 89.57% and 75.64%, respectively. Farm size, labour and the quantity of seeds were the crucial factors that affected the technical efficiency under both farming systems. Also, age, years of education and farming experience were the significant variables that influenced the technical inefficiency of inorganic farmers, whereas years of education and household size significantly influenced the technical inefficiency of organic farmers. This study advocates for subsidized inputs for organic farmers to compensate for their lower yields and policies that would attract young people to vegetable farming to increase the production level.