Assessing the efficiency and profitability potentials of honey input supply: The case of South West Nigeria

Abstract

The problem of limited understanding of the efficiency and profitability of the input supply in the honey industry has hindered the development of effective strategies and interventions. This study bridged the gaps by assessing the efficiency and profitability of input suppliers in South West Nigeria using data from 144 respondents. The analyses employed included descriptive statistics, budgetary techniques, the stochastic frontier model, and the relative importance index. Results indicate male dominance in the industry, with a gross margin of N581,260.00 and a profit of N267,760.00. Technical efficiency averages 0.93, while economic efficiency stands at 0.56. The main challenges include electricity problems, lack of capital, outdated technology, and high material costs. The study recommends promoting factors that improve efficiency to boost output and income for input suppliers. The research leads to a better understanding of honey input supply efficiency in South West Nigeria, aiding evidence-based decisions for industry stakeholders.