Estimation of Return to Scale Magnitude on Input Use by Tomato-Producing Farms in Katsina, Nigeria

Document Type : Original Article

Authors

Economics and Agribusiness, Faculty of Agriculture, Alexandria University

Abstract

This study investigated the returns to scale in tomato production in Batagarawa and Jibia L.G.A. of Katsina State, Nigeria. Primary data for the 2023 cropping season were collected through structured questionnaires administered to 250 farmers selected from six tomato-producing villages using multi-stage sampling techniques. The Cobb-Douglas production function, specifically the ordinary least squares method, was employed for parameter estimation. Reliability tests indicated minimal multicollinearity and autocorrelation. Results showed that seed (p < 0.01), fertilizer (p < 0.01), pesticide (p < 0.01), and family labor (p < 0.01) significantly influenced production, with seed having the highest coefficient (0.855). The estimated production elasticity was 1.481, indicating increasing returns to scale. A profit of ₦ 412,331.53 per acre and a return on investment (ROI) of ₦ 2.68 highlighted the profitability of tomato production in the area. Key challenges identified included high fertilizer costs, capital issues, pests, labor costs, and perishability. Recommendations include training farmers in local seed selection, establishing processing plants to reduce post-harvest losses, and the need for government interventions to support financing.

Keywords

Main Subjects

Alexandria Journal of Agricultural Sciences
Volume 70, Issue 1 - Serial Number 1
January - February - March
March 2025
Pages 54-60

Files

History

  • Receive Date: 21 November 2024
  • Revise Date: 09 December 2024
  • Accept Date: 09 December 2024

Share

How to cite

Statistics