ABSTRACT
The main focus of the study was to analyze the economic efficiency of guava production among smallholder farmers in Kaduna state. Primary data were collected from 126 respondents using structured questionnaire. The statistical tools used to analyze the data were descriptive statistics, net farm income and stochastic production frontier function model. The result of the analysis shows the average of the respondent as 34 years, the majority of the farmers (85%) were literate while 15% had no formal education. The average household size was 5 persons. Majority of the farmers, (61%) were not members of a cooperative society. About 87% of the respondents do not hadextension visit while 100% of guava farmers have farming experience range from 1-2 years with an average of 1years. The total revenue (TR) was ₦266,926.8 while the total cost (TC) was ₦97,213.07 per hectare of guava farms. The net farm income was therefore ₦169,749.73 per hectare of guava farms. The average rate of return on investment (return per naira invested) is ₦2.75, indicating that for every ₦1 invested in guava production in study area; a profit of ₦1.75 kobo was made. The parameters of the stochastic frontier production function were estimated simultaneously with those of the model of inefficiency effects. Results indicated that of the variables seed, fertilizer and labourwere significant (P < 0.01, 0.05and 0.10). The mean technical efficiency for the 126 sampled farmers in the study area was 0.82. The contribution from guava amounted to 68% of total household farm income. The potential impact of guava production on farmers' income was carried out by comparing the profit of guava producing farmers and non-guava producing farmers in the study area. Study revealed that constraints to guava production in the study area were pest and disease (90%), inadequate capital (42%), high cost of inputs such as seeds, fertilizer and labour(31%,3% and 7%) respectively, high cost of transportation (4%) and lack of access to market (31%).It is recommended that farmers should form co-operative association through pooling of resources together for a better expansion, efficiency and effective management of resources and for profit maximization
