ECONOMIC EFFICIENCY OF ONION PRODUCTION IN KONDUGA LOCAL GOVERNMENT AREA BORNO STATE, NIGERIA

This study examined the economic efficiency of onion production in Konduga Local Government Area, Borno State. The objectives were to analyze the socio-economic characteristics of onion farmers, estimate the gross margin of onion production, measure the technical efficiency of producers, and identify the factors influencing inefficiency. A multi-stage sampling technique was used to select 60 onion farmers, and primary data were collected through structured questionnaires and oral interviews. Analytical tools used included descriptive statistics, gross margin analysis, and the stochastic frontier production function. Results showed that the majority of the respondents were male, with an average age of 37.72 years, and had considerable farming experience. Most farmers relied on irrigation and sourced inputs such as fertilizer, labour, and seeds, which formed major components of production cost. Gross margin analysis revealed that onion production is highly profitable, with an average gross margin of ₦14,415,799.88 per farmer. The stochastic frontier analysis indicated an average technical efficiency score of 0.78, implying that farmers could still improve output by 22% without increasing input levels. Farm size, labour, and fertilizer significantly influenced output. Factors such as age, education, and farming experience reduced inefficiency, while larger household sizes increased it. The study concludes that onion production is economically viable in the area, but efficiency gaps exist due to high input costs, inadequate access to quality seeds, limited credit facilities, poor irrigation structures, and post-harvest losses. It recommends increased access to affordable inputs, improved extension services, better irrigation facilities, availability of soft loans, and research into improved varieties and pest management to enhance productivity and profitability.