This study evaluated the profitability and efficiency of honey production in Southwest Nigeria, with emphasis on technical, economic, and allocative efficiencies. A multistage sampling technique was used to select 114 honey producers. Data were analyzed using descriptive statistics, budgetary analysis, the Stochastic Frontier Model, Ordinary Least Squares (OLS), and the Relative Importance Index (RII). The results demonstrate that honey production is male-dominated, with an average household size of five persons. Budgetary analysis confirms that honey production is economically viable, generating a gross margin of ₦452,201.65, a net profit of ₦371,428.58, and a capital turnover ratio of 3.70, indicating a return of ₦3.70 for every ₦1.00 invested. Stochastic frontier estimates reveal that honey price and depreciation costs significantly increased output at the 1% level, while labor, herbicides, and transportation costs significantly reduced output at the same level of significance. The mean technical efficiency of 0.92 suggests that producers are operating close to the production frontier. However, the mean economic and allocative efficiencies (0.43 each) indicate substantial cost inefficiencies and suboptimal resource allocation. The RII identifies the major constraints affecting productivity and profitability as limited access to modern technology, outdated honey extraction methods, human disturbances, and high beehive costs. The findings imply that while honey production is profitable and technically efficient, improving resource allocation and adopting modern production technologies would significantly enhance overall economic performance.
Ijigbade et al. (Thu,) studied this question.