The Efficiency of Hard Wood Industry in Ondo State, Nigeria
Wood furniture industry is an important manufacturing sector in Nigeria for its significant contributions to the growth of national economy and industrialization as well as livelihood of the furniture makers. Therefore, evaluating efficiency of hard wood industry is important to provide useful information about the business to the furniture makers and to assist the policy makers to design appropriate policies in supporting furniture production in Nigeria. The specific objectives of this research were to describe socio-economic characteristics of furniture makers, estimate efficiency of furniture makers, determine the profitability of furniture production, identify factors influencing efficiency of furniture making and examine the problems associated with furniture makings in the study area. The study adopted a multistage sampling procedure. Data were collected from seventy furniture makers through a well-structured questionnaire. Descriptive statistics, budgetary analysis, Cobb Douglas stochastic frontier production function, inefficiency model and relative importance index were used to analyze the data. The findings revealed that 75.7% of the respondents obtained some levels of formal education; 4.3% of the furniture makers were single; 71.4% had no access to credit facility; and 7.1% exported their products beyond the boundary of Nigeria. The estimated gross margin and net profit of #7,041,255.09 (US $16,959.52) and #4,261,542.89 (US $10,264.33) respectively revealed that furniture production is profitable. The efficiency results showed that 27% of furniture makers were most technically efficient; 5.7% of them were most allocative efficient; and 10% of them were most economically efficient. Stochastic frontier production function analysis showed that firm size, labour and fixed assets had a positively significant influence on furniture production. The only identified socio-economic characteristics of furniture makers that had significant influence on efficiency of furniture production were educational level, operating experience and reinforcement training in the study area. The two critical constraints facing furniture making in the ranking scale were fluctuation of wood price and inadequacy of funds.
Keywords:Efficiencies, Stochastic Frontier Production, Furniture Makers
ADEDOKUN, M. O., OLAWUMI, A. T., SOAGA, J. A., OLUWALANA, S. A., & MOLOGMHE, I. M. R. (2017). ECONOMIC ANALYSIS OF DIFFERENT WOOD SPECIES IN MAJOR SAWMILLS IN ABEOKUTA OGUN STATE NIGERIA. Journal of Agricultural Science and Environment, 17(1), 73–82. https://doi.org/10.51406/JAGSE.V17I1.1791
Alao, J. S., & Kuje, E. D. (2012). Economics of Small-scale Furniture Production in Lafia Metropolis, Nasarawa State Nigeria. Journal of Economics, 3(1), 49–54. https://doi.org/10.1080/09765239.2012.11884952
Arowosoge, O. G. E., & Tee, N. T. (2010). Evaluation of consumers’ choice of wooden dining furniture in Southwestern Nigeria: A market strategy for furniture manufacturers and marketers. African Journal of Biotechnology, 9(21), 3109–3115. https://doi.org/10.4314/ajb.v9i21.
Arowosoge, O., Ogunsanwo, O., & Popoola, L. (2012). Spatial and Temporal Price Variations of Sawn Wood Utilized for Furniture Making in Selected Cities in Nigeria. Journal of Agriculture and Social Research (JASR), 11(1), 106–117. https://doi.org/10.4314/jasr.v11i1.
Babatunde, T. O. (2018). Evaluation of Cost and Return in Hardwood Industry in Sagamu, Ogun State, Nigeria. Journal of Global Biosciences, 7(9), 5662–5671. https://www.mutagens.co.in/jgb/vol.07/09/070907.pdf
Babatunde, T. O., Babatunde, O. O., Adejumo, A. A., & Okeleke, S. O. (2017). Cost and return structure in sawmill industry in Ijebu Ode, Ogun state, Nigeria. Journal of Research in Forestry, Wildlife and Environment, 9(3), 12–18. https://www.ajol.info/index.php/jrfwe/article/view/162173
Haile, B. T. (2015). Determinants of technical, allocative and economic efficiencies among onion producing farmers in irrigated agriculture: Empirical evidence from Kobo district, Amhara region, Ethiopia. African Journal of Agricultural Research, 10(20), 2180–2189. https://doi.org/10.5897/AJAR2015.9564
joseph, obembe jide, Adetose, O. E., & Olugbenga, I. M. (2014). Innovation Generation in the Furniture Industry in Southwestern Nigeria. International Journal of Sciences: Basic and Applied Research (IJSBAR), 16(2), 138–146. https://gssrr.org/index.php/JournalOfBasicAndApplied/article/view/2356
Ngui, K. S., Agrawal, A., & Voon, J. P. (2010). Challenges Impeding Competitiveness of the Wooden Furniture Manufacturing Industry: The Case of Furniture Industry in Sarawak, Malaysia. Australian Journal of Basic and Applied Sciences, 5(9), 1135–1145. https://doi.org/10.2139/SSRN.1951631
Oguntade, A. E., Fatunmbi, T. E., & Folayan, J. A. (2012). Productivity of Timber Processing in Ondo State, Nigeria. Sustainable Agriculture Research, 2(1), p1. https://doi.org/10.5539/SAR.V2N1P1
Ogunwusi, A. A. (2014). Wood Waste Generation in the Forest Industry in Nigeria and Prospects for Its Industrial Utilization. Civil and Environmental Research, 6(9), 62–69. https://iiste.org/Journals/index.php/CER/article/view/15450
Owoeye, R. S. (2017). Adoption of Improved Technologies in Maize-based Cropping Systems on Income of Farmers in Ondo State, Nigeria. International Journal of Agricultural Economics, 2(5), 153. https://doi.org/10.11648/J.IJAE.20170205.12
Oy, C., & World Bank Group. (2015). Furniture Industry in Kenya: Situational Analysis and Strategy. World Bank, Washington, DC. https://openknowledge.worldbank.org/handle/10986/22973
Sambe, L. N., Ancha, P. U., & Goshit, D. C. (2022). AN ASSESSMENT OF THE PERFORMANCE OF WOODEN FURNITURE INDUSTRY IN JOS METROPOLIS PLATEAU STATE, NIGERIA. Covenant Journal of Business and Social Sciences, 13(1). https://journals.covenantuniversity.edu.ng/index.php/cjbss/article/view/2987
Sanusi, J. O. (2003, June 10). Overview of government’s efforts in the development of SMEs and the emergence of small and medium industries equity investment scheme (SMIEIS). Central Bank Nigeria . https://www.cbn.gov.ng/OUT/SPEECHES/2003/GOVADD-10BJUNE.PDF
Theophilus Miebi, G. (2019). Technical efficiency and artisanal fishing households: Any hope in oil extracting locations? Evidence from Nigeria. Ege Journal of Fisheries and Aquatic Sciences, 36(3), 219–228. https://doi.org/10.12714/EGEJFAS.2019.36.3.03
Zhaoqun, S. ;, Rong, W. ;, & Yugui, Z. (2018). Analysis on technical efficiency and influencing factors of fishing vessels: a case study of Haizhou Bay, China. https://doi.org/10.22092/IJFS.2018.116608
How to Cite
Copyright (c) 2023 Adeoye Moses Aremo, Anthony Thompson Olaniran
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Author(s) retains full copyright of their article and grants non-exclusive publishing right to Advanced Journal of Social Science and its publisher AIJR Publisher. Author(s) can archive pre-print, post-print, and published version/PDF to any open access, institutional repository, social media, or personal website provided that Published source must be acknowledged with citation and link to publisher version.
Click here for more information on Copyright policy
Click here for more information on Licensing policy