Profit efficiency among maize farmers and implications for poverty alleviation and food security in Ghana

Abstract

In this study, we analysed the profit efficiency of Ghanaian maize farmers using data collected from 576 farmers in four agro ecological zones of Ghana. The stochastic frontier translog profit function was the main method of analysis. We find that maize production in Ghana is profitable but profitability will be adversely affected if prices of relevant inputs (pesticides, fertiliser, herbicides, labour and seeds) and farm size increased. Generally, the mean profit efficiency for all farmers was estimated to be 48.4% and maize farmers in the transitional zone were most efficient in their profit levels. Finally, profit efficiency was found to be influenced by educational level, gender, access to agricultural extension officers, good roads and credit. Improvement in the quality of road infrastructure in Ghana's maize producing areas could help lower the prices of production inputs. Stakeholders (Government and Non-Governmental Organisations) in the maize industry are encouraged to help put subsidies on prices of production inputs to make them accessible and cost effective in employing them. They are also advised to help provide extension agents with appropriate incentives that will make them committed to their duties. Implementation of the above recommendations among others will improve profit efficiency of Ghanaian maize farmers and make the maize industry an avenue for job creation and a recipe for helping Ghana to meet the sustainable development goals on no poverty and zero hunger.

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