Title: Production Cost Optimization Structure for Cassava Farmers in Transition and Forest Agro-Ecological Zones of Ghana
Abstract: Despite the important role cassava plays in the Ghanaian economy as food security and income generation crop, its development is faced by a number of challenges. Prominent among these challenges is the high cost of production emanating from cost of stem cuttings, harvesting and transportation. This paper therefore examines the production cost optimization structure for cassava farmers in two agro ecological zones of Ghana. Data was collected from 400 cassava farmers from two agro ecologies using the multi-stage sampling procedure. Using Classical Optimisation theory through the application of the Hessian determinants and Laplace expansion, it was found that farmers in both zones were cost minimizers since they satisfied the first order conditions of optimisation. They were however not operating at the required optimal expenditure levels. Farmers’ total production cost was GH¢ 1005.20/ha higher than the required optimal level of GH¢ 892.62/ha. This was as a result of high input cost such as labour and fertilizer. It is therefore recommended that farmers re-allign their expenditure structure and enhance efficiency of labour while Agricultural researchers as well as policy makers find a way of mechanising the production process.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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