COST EFFICIENCIES OF CATFISH FIRMS' IN KOGI STATE, NORTH CENTRAL NIGERIA

In this Study focused, cost efficiency levels of catfish producing firms of Kogi State, north central Nigeria were estimated. Stochastic frontier cost function was applied to data obtained from 100 small scale catfish farmers. These catfish farmers were selected through a multistage sampling procedure. Results reveal that the venture is dominated by male. These fish farmers are aging, highly educated but have an average experience of 6 years. Costs of land and labour were significant determinants of cost inefficiency. Less than half (42 farmers or 42% of the Farmers) incur 5% more than the economically optimum cost. These constitute the most cost inefficient firms. Thus, allocative efficiency in catfish production in the area is fair. The average cost efficiency level in the area is 1.106, suggesting that farmers on the average incur about 11% more cost than necessary. The level of cost efficiency could improve with attempts at reducing inefficiency by this 11%.  To achieve this, catfish farmers must pay some attention to pricing of land and labour, and seek to optimize the use of these factors of production. This can be achieved through training on cost and input relationship.