Technology Gap Efficiency of Small-Scale Rice Processors in Anambra State, Nigeria

Abstract

This paper aims to examine the technology gap efficiency of small-scale rice processors in Anambra State, Nigeria. The research was conducted through a survey of 100 small-scale rice processors in Anambra State. Data were collected with structured questionnaires and analyzed using descriptive, stochastic frontier analysis, stochastic meta-frontier model, and inferential statistical techniques. The study revealed that important variables to rice processing present in the state are paddy, firewood, water, and huller. Concerning the economic-specific factors, the cost of grading and other processing assets contributes to inefficiency. The results equally showed that the technology gap efficiency of small-scale rice processors in the industry is tied to or tangential to the frontier output, meaning that the processors in Anambra State are making use of the best technology available. The average efficiency index for the processors in the industry was 0.506, implying that their output is below potential by 49.4%. The results also revealed the technology gap efficiency for the participating and non-participating processors as 0.924 and 0.983, respectively, meaning that the participants need to close an 8.0% gap, and the non-participants need to close a 2.0% gap. These gaps are caused by the high cost of processing equipment, high cost of input, and inadequate infrastructure, among others contributing factors. The paper concluded that the average meta-technical efficiency (0.498) of small-scale rice processors in Anambra State is low and needs to be improved through the provision of adequate technology, training, and infrastructure to bring the current industrial production capacity to 100.0%.