ABSTRACT

 The study examined the Pen-urban Tomato (Lycopersicon esculentum) Production in Kogi State Using a Profit Function Approach. Specifically, it examine the socio economic profile of penurban tomato production, determine the cost and returns and gross margin of pen-urban tomato farmers, estimate the economic efficiency of pen-urban tomato producers, ascertain factors influencing economic efficiency of pen-urban tomato producers in the area and finally examine the factors limiting profitability of pen-urban tomato production. A purposive sampling technique was adopted in the selection of 96 pen-urban farmers. A well structured questionnaire was used to obtain information on the socio economic characteristics and other relevant variables. Descriptive statistics was used to analyse the socio economic characteristics of the farmers. Cost and returns and profitability ratios were used to determine the gross margin. Economic efficiency was analysed using translog stochastic profit function, maximum likelihood estimation technique was employed in estimating the function. Generalized Likelihood Ratio (LR) Estimation was used in testing hypothesis of full economic efficiency with respect to socio economic profile. The result revealed that 39.58% of pen-urban tomato producers fell within the age bracket of 30-39 years, about 34.38% of the respondents had between 6-10 years of business experience while the pen-urban tomato enterprises in Kogi State recorded average of 0.9 plots of land. 3 5.42% of the respondents belong to cooperative association, while 22.92% had access to credit. The pen-urban tomato producers made a profit of N114, 683.55 and gross margin of N133, 455.32. The translog stochastic profit function result shows that price of fertilizer, land rent and capital input were significant at 1% but negative, while price of seed was significant at 1% and the translog function revealed that age, extension visits and farm size negatively influence efficiency, while business experience positively influence efficiency. The problems limiting production depicted that the all respondent reported of pest and diseases as well as high cost of capital inputs while 96.8 8% complained of inadequate extension visits. Therefore policies that will encourage experienced enterprises are suggested; also policies that will attract young enterprises of middle aged and possibly older ones to remain in the business.