Production is the process whereby some goods and services are transformed into other goods. The
transformed goods are known as inputs, factors or resources while the newly created goods are
called outputs, products or yields in the case of crops. Production can be categorized into three;
primary, secondary and tertiary production.
In the process of producing agricultural commodities, resources (inputs) which are not only limited
in both quantity and quality but also have alternative and often competing uses are employed. The
main focus of production economics therefore is the management of resources (land, labour,
capital and entrepreneur) in the process of producing commodities. Critical in the goal of resource
management are choice and decision making among the alternative uses and alternative end
products (output).
The two major goals of production economics are;
i. Provision of guidance to individual farmers for efficiency in resource use in production,
and
ii. Provision of guidance to customers for efficiency in resource use in consumption and
processing.
Agricultural production economics is an applied field of economic science which is essentially
concerned with the application of the principles of choice to the utilization of capital, labour, land,
water and management resources in the farming industry. Agricultural production economics is
specifically concerned with the conditions under which the expected end objectives of farm
operators, farm families and the consumers can be attained to the greatest degree possible.Inaugural Lecture_Prof. Ibitoye-1
Menu