PROFITABILITY OF SMALLHOLDER MAIZE PRODUCTION IN THE TECHIMAN MUNICIPALITY

ABSTRACT 

The study was conducted among smallholder maize farmers in the Techiman Municipality of Brong-Ahafo Region. Semi-structured questionnaire was the main instrument for collecting the primary data. Using data from hundred (100) randomly sampled maize farmers in the Brong-Ahafo Region, the profitability of maize farming was assessed and the determinants of profit was examined. Budgetary technique, multiple regressions and Kendall’s coefficient of Concordance was used to analyze the farmers’ profit level, factors that determine profitability of maize and constraint of profitability of smallholder farmers respectively. Based on the analysis, the study confirms that farmer, farm and socioeconomic/institutional variables such as farm size, educational level, experiences, famers’ access to extension service, market access and access to credit are important in increasing the profit level of maize farmers in the Techiman Municipality. From the profitability analysis, it was evident that maize farming is a very lucrative business considering the values of the Return on Investment of 0.81 which implies for every GHȼ1.00 invested in the maize farming, a return of GHȼ1.81 was realised. In spite of the role smallholder farmers as an engine of economic growth and national development, access to credit remains a major constraint.

Table of Contents

DECLARATIONiii

DEDICATIONiv

ACKNOWLEDGEMENTv

LIST OF ACRONYMSix

ABSTRACT…x

CHAPTER ONE11

INRODUCTION11

1.1 Background of the study11

1.2 Problem Statement12

1.4 Research Objective of the study13

1.6 Justification of the Study13

LITERATURE REVIEW15

2.1 Introduction15

2.2 Maize Production in Ghana15

2.2.1 Nature of Maize Production in Techiman Municipality16

2.6 Value and Profitability18

2.7 Factors influencing the profitability of crops19

CHAPTER THREE21

RESEARCH METHODOLOGY21

3.1 Introduction21 Study Area21

3.2.1 Study Population Size, Structure and Composition21

    3.3 Source and type of data collection…………………………………….....…..23

     3.4Sampling Techniques and sampling size………….….…………….………23

     3.5 Method of data collection……………………………………….…………...23

     3.6 Method od data analysis…………………………….…………...……….…23 

3.6.2Profitability Analysis23

3.6.3Regression Analysis24

3.6.4 Analyzing the Constraints to Profitability of Smallholder Maize Farmers.25

3.6.4.1 Hypothesis Testing and Significance F Test for W25

CHAPTER FOUR26

RESULTS AND DISCUSSION26

4.1 Introduction26

4.2 Socio Demographic Characteristics of the Producers and Marketers26

4.2.2 Age Distribution of Respondents27

4.2.4 Educational Level of Respondents28

4.4 Determinants of Profit in Maize Farming32

4.5 Constraints Affecting Small Scale Maize Farmers34

CHAPTER FIVE36

CONCLUSION AND RECOMMENDATION36

5.1 Introduction36

5.2 Conclusion36

5.3 Policy Recommendations37

REFERENCES38

APPENDIX42