COSTS AND RETURNS ANALYSIS OF COCOA MARKETING IN IKEDURU LOCAL GOVERNMENT AREA OF IMO-STATE, NIGERIA

The study is centered on the analysis of cocoa marketing in Ikeduru Local
Government Area of Imo State, Nigeria. The study was carried out using
multi-stage cum random sampling techniques. This was informed by its ability
to minimize error and overcome bias. Data were drawn from a sample of
59 farmers / marketers who produced and marketed cocoa pods / seeds
during the study period using a well structured questionnaire. Data were
analyzed using descriptive statistics such as frequency tables, percentages
and farm budgeting techniques. The results showed that most of the farmers
were married, males, educated, experienced and solely owned the business
which empowers them to take vital decision concerning their marketing
operations. Results of the farm budgeting technique showed that cocoa
marketing in the study is a viable business with a gross margin of N13,589.8
and net-returns of N12,605.5. However, this income is not sustainable to
human existence due to the low outputs produced by the farmers as well as
its periodic nature. Field data further revealed that 22.0% of the farmers
sold their produced at home, while 61.0% and 16.9% sold at the nearest
markets and factories respectively. This showed that the cocoa marketers
operated a decentralized marketing channel for the dispose of their produce.
Results further showed that farmers were faced with problems of credit
difficulties, high cost of labour and transportation etc. Consequently, farmers
should be encouraged to form co-operatives so as to benefit from the
economies of scale as well as improve on their credit worthiness.