Abstract

The study was conducted in Enugu east agricultural zone of Enugu State, Nigeria. The study analysed and compared technical and allocative efficiencies of arable crop cooperative and non-cooperative farmers in the study area and estimated their return to scale. Purposive and multistage random sampling procedures were used to select the respondents. Data were collected through primary source. The collected data were analysed with Cobb-Douglas stochastic frontier production function. The result of the study showed that out of the inputs used by the farmers more resources (planting materials, labour and herbicides) contributed significantly to the output and efficiency of cooperative farmers than Non-co-operators which only one (fertilizer) positively influenced the efficiency of the farmers. Also findings from inefficient model indicated that more variables (age and educational level) enhanced cooperative farmers technically efficient than non-cooperative members who had only one (extension contact) that positively influenced their technically efficient. The findings indicated that the mean technical efficiency of cooperative and non-cooperative farmers were 0.81 and 0.71. This implied that the two groups underutilized their available resources which indicate that none of the groups allocatively maximized their resources and therefore, did not maximize production. The findings of the study therefore, indicated that members of the cooperatives were found to be more technically efficient than Non-co-operators. The policy implication is that farmers should be encouraged to form more cooperative societies because the association enhances their productivity and improves their efficiency in resource use.