African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6693

Full Length Research Paper

Profit loss per hectare according to profit efficiency level among smallholder rice farmers in Central Liberia

Joseph Lavela Saysay*
  • Joseph Lavela Saysay*
  • Department of Planning and Development, Ministry of Agriculture, P. O. Box 10-9010, Monrovia, Liberia.
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Damian Mulokozi Gabagambi
  • Damian Mulokozi Gabagambi
  • School of Agricultural Economics and Business Studies, Sokoine University of Agriculture, P. O. Box 3007, Chuo Kikuu, Morogoro, Tanzania.
  • Google Scholar
Gilead Isaac Mlay
  • Gilead Isaac Mlay
  • School of Agricultural Economics and Business Studies, Sokoine University of Agriculture, P. O. Box 3007, Chuo Kikuu, Morogoro, Tanzania.
  • Google Scholar


  •  Received: 26 June 2016
  •  Accepted: 26 July 2016
  •  Published: 11 August 2016

Abstract

Self-sufficiency in rice production has been an essential issue in the Liberian agriculture sector. With the increasing demand and low national productivity of rice (1.2 t/ha), Liberia remains a net importer of rice unless domestic production improves significantly. This study was conducted to analyze smallholder rice farmers’ level of efficiency and profit-loss due to allocative and technical inefficiencies. A two stage random sampling with stratification was adopted to collect data from 400 rice farmers in Central Liberia. The results show that high level of inefficiency exist with 33% of profit-loss among smallholders rice farmers due to a combination of technical and allocative inefficiencies. The average profit-loss is about 19,900 LRD/ha. Factors that are related to profit-loss and inefficiency are lack of credit and extension services and the non-usage of yield improving technologies such as high yielding improved seeds, fertilizer and herbicide. Lastly, inefficiency and profit-loss were high in upland rice production than lowland rice production.

Key words: Liberia, profit-loss, inefficiency, smallholder rice farmers.