Published
2022-06-06
Issue
Section
Articles
How to Cite
Economic Efficiency of Processed Hibiscus Sabdanriffa (Roselle) Drink in Imo State, Nigeria
Ehirim NC
Department of Agricultural Economics, Federal University of Technology Owerri Imo State, Nigeria.
Osuji EE
Department of Agriculture, Alex Ekwueme Federal University Ndufu-Alike Ebomyi State, Nigeria.
Tim-Ashama AC
Department of Agricultural Economics, Federal University of Technology Owerri Imo State, Nigeria.
Essien UA
Department of Agricultural Science, Alvan Ikoku Federal College of Education Owerri Imo State, Nigeria.
Eze EU
Department of Agricultural Technology, Federal Polytechnic Nekede, Owerri Imo State, Nigeria.
Praise CN
Department of Cooperative Economics and Management, Institute of Management and Technology, Enugu, Nigeria.
Anyanwu UG
Department of Agricultural Economics, Federal University of Technology Owerri Imo State, Nigeria.
DOI: https://doi.org/10.20448/wsr.v9i1.3970
Keywords: Zobo drink, Processors, Efficiencies models, Data envelopment analysis, Net returns, Marginal value product.
Abstract
The study developed a model to evaluate efficiencies of Zobo drink processors in Imo State using Data Envelopment Analysis (DEA). Data were collected from 163 Zobo drink processors across 36 markets in the study area and was analyzed under the constant returns to scale (CRTS) and variable returns to scale (VRTS) assumptions. Result showed that Zobo processing was highly profitable with about 44.34% net margin on total revenue generated. Mean economic efficiency scores estimated from the DEA frontier for both CRTS and VRTS were 0.537 and 0.683. Sex, educational level and alternative to income were most statistically significant factors. It was recommended that more male involvements are encouraged in Zobo drink; educated individuals particularly unemployed are advised to engage and create a cliché for themselves through the use of more innovative processing and packaging activities and adopting cost-minimizing input mixes of best-practice to enable them become fully efficient.