Effects of Production Resources on Gross Margin of Cocoa Production in Osun State

ABSTRACT

Cocoa has been a major source of income for many Nigerians and a major source of foreign exchange earnings for the country. However its production has been experiencing a declining trend in recent times. Many factors have been implicated. One major factor is the inaccessibility of inputs.   The objective of this study therefore describes the socio-economic characteristic of cocoa farmers, it evaluates the level of profitability and also determined the effect of input demand on the profitability of cocoa farmers. The study was carried out in Ile Ife, Osun State. 

Data were collected with the aid of structured questionnaire employing interview schedule. One hundred and twenty cocoa were randomly selected from four selected local government areas of Ile Ife. The data set was then analyzed using descriptive statistics budgetary analysis and regression techniques. The study revealed that the average age of the respondents was 54.7 years, the farmers have an average of 2.0ha farm size and most of the farmers do not use fertilizers on their land. The gross margin to enterprise was N425, 880 while the net income was N402,383. The regression analyses revealed that age of farmers, age of trees, farm size were significant determinant of net income. The study concluded that inputs should be provided by government to the farmers at subsidized rate and also young farmers should be encouraged to venture into cocoa production.      

TABLE OF CONTENTS

TITLE PAGE i

CERTIFICATION ii

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES xi

LIST OF FIGURES xiii

ABSTRACT xiv

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study 1

1.2 Statement of Research Problem 3

1.3 Objectives of the Study 5

1.4 Justification of the Study 6

CHAPTER TWO: LITERATURE REVIEW

2.1 Trend in cocoa production in Nigeria 7

2.2 Importance of cocoa 10

2.3 Economic potential of cocoa 11

2.4 Challenges facing cocoa production in Nigeria 12

2.5 Cocoa: habitat and cultivation 14

2.5.1 Ecology 14

2.5.2 Botany 15

2.5.3 Varieties 16

2.6 Agricultural Practices 17

2.6.1 Planting materials 18

2.6.2 Germination 18

2.6.3 Shade and planting density 19

2.6.4 Manuring programmes 19

2.6.5 Prunning 20

2.6.6 Weed control 20

2.6.7 Pest and diseases 21

2.6.8 Harvesting 21

2.6. Fermentation 22

2.6.10 Drying 22

2.7 Nature and Review of past studies use of inputs in cocoa production 23

 2.7.1 Land 24

 2.7.2 Labour 24

 2.7.3 Capital 25

 2.7.4 Fertilizers 26

 2.7.5 Herbicides 26

 2.7.6 Pesticides 27

2.8 Importance of inputs in cocoa 28

2.9 Government intervention in providing farm inputs 30

2.10 Empirical review 35

2.11 Analytical review 38

 2.11.1 Budgetary analysis 38

 2.11.2 Regression Analysis 39

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 The Study area 41

3.2 Sampling procedure 44

3.3 Analytical technique 44

 3.3.1 Descriptive analysis 45

 3.3.2 Budgetary technique 45

 3.3.3 Multiple regression analysis 46

3.4 Assumptions of ordinary linear square model 48

3.5 Formula used in Calculating Significance 49

3.6 Limitation of the Study 50

CHAPTER FOUR: RESULTS AND DISCUSSION

4.1 Socio-economic characteristics of Respondents 51

 4.1.1 Gender Distribution Respondents 52

 4.1.2 Age distribution of Respondents 53

 4.1.3 Marital Status of Respondents 55

 4.1.4 Household Size of Respondents 56

 4.1.5 Education Level of Respondents 58

 4.1.6 Primary Occupation of Respondents 59

 4.1.7 Secondary occupation of Respondents 60

 4.1.8 Respondent Membership of Cooperative Society 61

4.2 Land Resources 62

 4.2.1 Farm size of Respondents 63

 4.2.2 Acquisition of land by Respondents 65

 4.2.3 Replenishing the fertility of the soil 66

4.3 Production Data 67

 4.3.1 Farming experience of Respondents 68

 4.3.2 Initial Source of Capital by Respondents 69

 4.3.3 Source of seedlings of Respondents 70

 4.3.4 Labour Employed on the farm by Respondents 71

4.4 Factors Militating against Cocoa Enterprise 72

4.5 Budgetary Analysis 74

4.6 Regression Analysis 76 

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary 79

5.2 Conclusion 80

5.3 Recommendation 80

REFERENCES 82

APPENDIX: Questionnaire 88