TECHNICAL EFFICIENCY DIFFERENTIALS IN OIL PALM PROCESSING TECHNOLOGIES IN CROSS RIVER STATE, NIGERIA

Abstract

This research analyzed technical efficiency differentials between traditional and improved oil palm processing technologies in Cross River State, Nigeria. A multistage sampling technique was used to select 164 processors. Data were collected through questionnaire and analysed using stochastic frontier. Results revealed mean efficiency of 62% for traditional and 81% for improved technologies. Implying that, no need for the development of a new technology; however, production can be improved using current available technologies. Labour, fresh fruit, depreciation cost and other variables costs were found to affect technical efficiency of traditional processors positively while labour, fresh fruit and other variables costs positively affect improved technologies users’ technical efficiency. Determinants of technical efficiency for both groups of processors were processing experience, educational level and access to extension contact. It was recommended that adoption of improved technologies for processing oil palm should be encouraged by government through extension service and credit facilities.