Economic Analysis of Cocoa Production in Ilesha Metropolis of OSUN State

Transcription

1 IOSR Journal of Agrculture and Veternary Scence (IOSR-JAVS) e-issn: , p-issn: Volume 9, Issue 10 Ver. I (October. 2016), PP Economc Analyss of Cocoa Producton n Ilesha Metropols of OSUN State Aknnran, T. N*,Tawo, K. B.** *Department of Agrcultural Economcs, LadokeAkntola Unversty of Technology, Ogbomoso, Ngera **Department of Anmal Producton and Health, Oyo State College of Agrculture Igboora Abstract: Before the dscovery of ol, agrculture was the man stay of Ngera economy t was a major component of the gross domestc product (GDP) contrbutng asmust as 75% to the country economy. The followng cash crops: cocoa, ol palm, groundnuts, tmber, rubber as well as staple food crops lke rce, maze, mllet, beans among others are agrcultural products n Ngera then. Wth dscovery of ol n late fftes, agrcultural sector was neglected and the country moved from self-suffcent to one of heavly dependence on mportaton of food crops such as rce, wheat, rce etc. to feed her populace. Cocoa farmers n Ilesha consttute the samplng frame for the study. A two-stage random samplng technque was used n selectng the respondents for the study. Random samplng technque was used to select Nne (9) cells n the study area, followed by purposve selectonof ten (10) cocoa farmers, whch gves a sample sze of nnety (90) cocoa farmers. Prmary data were collected through the use of structured questonnare and ntervew schedule. Informaton collected was analyzed usng descrptve statstcs, regresson analytcal tools and budgetary technque to: present the soco-economc characterstcs of the respondents,determne the level of relatonshp between the dependent and ndependent varables anddetermne the costs and returns, hence proftablty of cocoa producton. From the fndngs of ths study, the mean age of the cocoa farmers was 55years.It can be deduced that majorty of the farmers are stll at ther actve age, hence, producton s stll expected to be ncreased. It s necessary to encourage the young farmers nto cocoa producton to take farmng as a lucratve job. Majorty of the cocoa farmers had one form of educaton or others, whch mples that, they wll be able to adapt to and adopt any form of nnovaton brought to them that can boast ther farmng system. The mean 28years of experence ndcates that most of the farmers have been nto cocoa producton for a long perod of tme; hence, there s probablty of ncreased output. The mean age of the cocoa trees of 27years, ndcated thatthere s need to establsh new plantaton to replace the older ones. More than half of the respondents nherted ther cocoa farm. Other crops grown by the cocoa farmers nclude: ctrus, kola, banana and ol palm, to serve as shade for the cocoa seedlng and other foregn exchange. Predomnantly, most of the cocoa are frst harvested at an average age of 5yarsdue to the ntroducton of mproved cocoa hybrds. The major source of captal was personal savng, 61.8 percent use of hred labour for ther farm operatons, whle 93.3% of the seedng used was rased n nursery. The mean tme of harvest s 4 tmes. In addton,rent on land, cost of seedlngs and cost of labour are statstcally determne the proftablty of cocoa farmers whle quantty of fertlzer and ncrease n farm sze determned the cocoa productvty. Hence, cocoa producton can be mproved f young graduates can be encouraged to embark on farmng; rent on land be moderate; costs of seedlngs s affordable; coupled wth usng experenced hred labour and performng the farmng operaton as at when due. Keywords: cocoa, productvty, proftablty, farmng experence, foregn exchange I. Introducton Before the dscovery of ol, agrculture was the man stay of Ngera economy t was a major component of the gross domestc product (GDP) contrbutng asmust as 75% to the country economy. The followng cash crop's cocoa, olpalm groundnuts, tmber, rubber as well as staple food crops lke rce, maze, mllet, beans among others are agrcultural products n Ngera then. Wth dscovery of ol n late fftes, agrcultural sector was neglected and the country moved from self-suffcent to one of heavly dependence on mportaton of food crops such as rce, wheat to feed her populace. Cocoa, Theobromacaocao (L) one of the major cash crops n the country was beleved to have orgnated n the hot humd regon near the sources of rver amazon n South Amerca. It s stll found growngw ld along the rver amazon and ts mportant trbutares. It was ntroduced nto many countres n West Afrca durng the nneteenth century, and t has become an mportant export crop n Ghana, Cote D'vore, Ngera, Togo and equatoral Gunea (Folayanet al; 2006) the above mentoned countes supply more than two- thrds of the World's cocoa (Komolafeet al, 1980 ). The early development of cocoa ndustry n West Afrca was entrely due to the ntatve and entrepreneurshp of the West Afrcan peasant farmers n Ngera, the government has developed an nterest n DOI: / Page

2 the cultvaton of cocoa snce 1887 when cocoa seedlng from the old botanc garden at Ebute-meta (Lagos) were set-up for tral (Opeke, 1982). Cocoa can be grown wth on a wde range of ranfall from 100 to 300mm per annum or more when rrgaton s avalable and provded that occurrence of dry wndss lmted; the crop can be grown wthout ran. Cocoa s very senstve to mosture stress. It s also very senstve to excess water n the sol.in selectng ste for plantng cocoa; t s desrable to ensure that the ste enjoys ranfall averagng150mm per month for at least nne months of the year. The optmal average temperature throughout the year for cocoa cultvaton s annual 25 C wth a daly temperatureof not more than 10 0 c. It has been suggested that daly temperaturefluctuaton, of ths order are necessary to ntate bud burstng (Opeke, 1982). In spte of shfts n the natonal foregn exchange source. Cocoa contnues toplay a major role n the economc lfe of people n the old western regon and nrecent years has contrbuted substantally to the foregn exchange earnngs of the naton.snce 1986 when commodty boards were dssolved cocoa trade rose phenomenally assumng a more dynamc economc actvty. Currently cocoa provde economc actvtes for a cross-secton of the publc both n and outsde the producton regon (Nkanget al; 2006). Cocoa producton s an ntensve operaton from plantng to marketng engagng people of dverse tranng and experence, wth each group occupyng a part of ts own. Plantng, mantenance, harvestng and dryng provde jobopportuntes for the rural populaton ncludng the old and agng farmers (men and women) and young school leavers. The qualty control marketng processng and exportng provded busness for both cvl servants, natonal and nternatonal busness men (Nkanget al; 2006). Gven the need economc and foregn exchange sources dversfcaton, the fact that cocoa, an agrcultural enterprse s capable of sustanablty and the need for ncreased revenue to the government at federal state and local levels, t s anmperatve to explore ways to ncrease cocoa producton on a sustanable bass (Aknyemju, 1995). The man objectve of ths paper was centered on economcs analyss of cocoa Producton n Ilesha East and Ilesha West Local Government Areas. The paper was specfcally amed at: dscussng the effect of socoeconomc characterstcs of cocoa farmers on ther producton;determnng the relatonshp between cocoa producton nput and cocoa output;evaluatng the cost and returns hence proftablty of cocoa farmng ; anddetermnng the problems assocated wth cocoa producton n the study area. II. Methodology The study was carred out n Ilesha Metropls n Ilesha Agrcultural Development Programme zone of Osun-State. Untl November 1988, ancent cty of Ilesha was a sngle Local Government Area when t was carved nto 2 as Ilesha West and Ilesha East Local Government Areas accordngly. Ilesha East Local Government s about 113km 2 n land area and sze and t s located along Iyemogun road, whle Ilesha West has ts headquarters at Ereja. Ilesha West Local Government s about 114km2 n land and sze. Ilesha whch s 30km from Osogbo, Osun state shares boundares wthobokun LGA of Osun State n the North. Orade LGA n the west, and Atakumosa West LGA n the south. Ilesha s predomnately Yoruba apart from Ijesha who are molegenes of the area, other Yoruba speakng people of Oyo, Ekt, Ijebu, Egba, Igbomna are resdng peacefully n every nooks and crannes of the area. In lke manner, people from other ethnc groups n Ngera lke the Hausa, Igbo, Edo and other natonaltes were exst peacefully wthn the area. The major occupaton of the people s tradng but ths s not that people of Ilesa are not practcng farmers. The people n the area specalze n the cultvaton of food and cash crops such as yam, cocoa, kolanut, ctrus and ol palm and producton of lvestock anmals such as poultry brds pg, cattle and sheep. The ncome based populaton was promnently maze farmers. Cocoa farmers n Ilesha East and West Local Government Areas consttute the samplng frame for the study. A two-stage random samplng technque was used n the cross-sectonal surveyng of the study area. Random samplng was used to select Nne (9) cells n the study area. In each cell purposve selectonwas used to select ten (10) cocoa farmers, whch gves a sample sze of nnety (90) cocoa farmers. The reason for the purposveness s the avalablty of cocoa farmers n the area. Ths research work employed the use of prmary data. The data were collected through the use of structured questonnare and ntervew schedule. Informaton on cocoa producton and soco economc characterstcs of cocoa farmers were obtaned.data collected were analyzed usng both descrptve statstcs and regresson analytcal tools.descrptve tools nclude the use of tables, frequences andpercentage to present the soco-economc characterstcs of the respondents.regresson analyss on the other hand, was employed usng both Sem-log and Exponental functons to determne the level of relatonshp between the dependent and ndependent varables. Also, budgetary technque was used to determne the costs and returns, hence proftablty of cocoa producton. DOI: / Page

3 The dependent and ndependent varables were set nto a Sem-log functon to determne the relatonshp between cocoa producton nput and cocoa output of the cocoa farmers as below: Y B AX ln of both sdes Y = lna + β lnx + β = Coeffcent of X (parameters) X = Explanatory varables where = 1-5 = error / dsturbance term The exponental functon was establshed to analyze the productvty of the cocoa farmers n the study area. A Y X takeln of both sdes ln Y = A + β X + β = Coeffcent of X X = Independent varables = error terms where = 1-8 Y = Total output X = Chemcal X 2 = Fertlzer X 3 = Farm Sze/hectare X 4 = Seedlngs (nput use) X 5 = Labour /Manday X 6 = Age X 7 = Level of Educaton X 8 = Farmng Experence Ths research work measures two varables.e. the dependent and ndependent varables. The dependent varable was the total output of cocoa per year n the study area. The ndependent varables are age (years), level of educaton, farmng experence (year), farm sze (hectares), age of cocoa (year) labour per manday, ltres for chemcals appled per hectares. III. Result and Dscusson Soco-economc characterstcs of cocoa producton n IlesaMetropols of Osun State are presented n Table 1. From the table, t was revealed that 88,% of the respondents are male whle the remanng 11.2% are female, ndcatng that cocoa producton n the study area was domnated by males. The mean age of the cocoa farmers was 55years, whle the modal age group fell between 41 and 60 years. It can be deduced that majorty of the farmers are stll at ther actve age, hence,producton s stll expected to be ncreased. It s necessary to encourage the young farmers nto cocoa producton to take farmng as a lucratve job. From the Table, 36.0% of the cocoa Farmers had prmary educaton, 23.6% are secondary school leavers, 19.1% had tertary educaton whle 21.3 had no one formal educaton. Ths showed that, majorty of the cocoa farmers had one form of educaton or others, whch mples that, they wll be able to adapt to and adopt any form of nnovaton brought to them that can boast ther farmng system.also majorty of the farmers (36.-%) had between 16 and 30 years of farmng experence n cocoa producton, the most experenced cocoa farmers wth years was 25.8% and 24.7% had between 0-15 years whle only 13.5% had more 45years experence n cocoa farmng producton.the mean 28years of experence ndcates that most of the farmers have been nto cocoa producton for a long perod of tme, hence, there s probablty of ncreased output. In addton, 78.7% of the respondents had between 0 and 3 hectares of farm land under cocoa plantaton, 11.2% had between 4 and 7 hactares, whle only 10.1% had more than 7 hectares farm sze. The average farm sze of the respondents had approxmately 3 heaters, ndcatng that, most of the cocoa farmers are small scale producers whch may be due to some factors lke, lack of fund, access to mproved nputs, land tenancy etc. DOI: / Page

4 Other occupatons of the cocoa farmers were also terated, and t was found that 49.6% are artsans, 16.8% are cvl servants, 4.4% engage n other farmng occupaton whle 29.2% shoed no response, ndcatng that the cocoa farmers also engaged n a seres of occupaton apart from cocoa farmng. Input Used n cocoa producton are presented n Table 2. It could be deduced from the table that 44.9% and 41.6% of cocoa trees on the respondent s farms are between the ages of 21 and 40years and between 0 and 20years respectvely the remanng 13.5% had spent between 41 and 60 years on the farm. The mean age of the cocoa three s approxmately 27 years. Whch s an ndcaton that most of the cocoa trees have spent a long tme on the farm and cocoa farmng had been n practce for decades n the study area, hence there s need to plant establsh new plantaton to replace the older ones. It was recorded that 51.7% of the respondents nherted the cocoa farm, 23.6% and 14.6% purchased and leased ther farm plantatons respectvely only 10.1% acqured ther cocoa farm through other means. Ths mples that more than half of the respondents nherted the cocoa farm. Other crops grown by the cocoa farmers nclude: ctrus, kola, banana and ol palm, whch pulled at 12.4%, 20.2%, 39,3% and 28.1% respectvely. These crops are planted alongsde the cocoa trees especally durng the early stages to serve as shade for the cocoa seedlng.the age at frst harvest of cocoa by the respondents ndcates that 85.4% of the cocoa were frst harvested between the ages of 4 and 7 years, 7.9% after 7years and 6.7 at 3years or less. Ths mples that predomnantly most of the cocoa are frst harvested at an average age of 5yars. The reducton n years of harvestng may due to the ntroducton of mproved cocoa hybrds. Cocoa farmers sourced for captal from ther personal savngs, cooperatve, borrowng from frend and famly whle others obtanng loan wth 47.3%, 24.7%, 21.3%, and 6.7% respectvely. Majorty (61.8% ) of the cocoa farmers enjoyed the use of hred labour for ther farm operatons. Two-thrd the land used for cocoa farm was communal land whle 93.3% of the seedng used was rased n nursery. Also from the table, 95.5% purchased the chemcal used on ther cocoa farm, but 98.9% of the cocoa farmer apply chemcals to ther farm usng dfferent number/types of chemcal wth majorty of them used type2 chemcals. Operatons on the farm were presented n Table 3. It was observed that 52.8% of the respondents carred out weedng between 1 and 2 tmes a year, whle 47.2% weed thrce to four tmes n a year wth average of More than half (61.8%) of the cocoa formers do not apply fertlzer to ther cocoa farm whle only 38.2% of them do apply. The table also ndcates the number of tmes the respondents harvest ther cocoa. More than half (59.6%) of the farmers harvest ther cocoa between 4 and 6 tmes n a year, wth 40.4%of the respondents harvest between 1 and 3 tmes. The mean tme of harvest s 4 tmes. Dfferent types of measurements used by the farmers are equally shown n the table, about half (48.3%) and 32.6% of the cocoa farmers used basket and klogram respectvely n measurng ther cocoa, whle 13.5% and5.6% used tones and bags respectvely n measurng the cocoa beans output. Informaton on the problem encountered by cocoa s shown n Table 4. It was revealed that majorty of the farmers 86.5% encountered multple problems IV. Regresson Analyss The R 2 = whch means 89.6% of the dependent varable s beng explaned by the explanatory varables. The F-value s and t s statstcally sgnfcant (P<0.1).The coeffcent of regresson assocated wth rent on land s and t s statstcally sgnfcant (P<0.1). Ths mples that rent on land s a sgnfcant determnant factor of the proftablty of the cocoa farmers. It means for every acreage ncrease n rent on land there s gong to be an ncrease n proft of the cocoa farmers by N72,900. The coeffcents of regresson assocated wth cost of seedlngs, cost of labour, are and respectvely statstcally sgnfcant (P<0.1). Ths mples that both cost of seedlngs and cost of labour are sgnfcant determnng factors of the cocoa farmers proftablty. Farmers proftablty wll ncrease by N188,000 wth ncrease n cost of seed, whch s not n lne wthapror expectaton whle cost of labour wll reduce the proft by N98,800 and ths s n conformty wth apror expectaton. In addton, cost of chemcal and tools/equpment also contrbuted the farmers proftablty but were not statstcally sgnfcant at any level. R 2 = 0.702% whch mples that 70.2% of the cocoa farmers productvty s beng explaned by the lnear assocaton between dependent (yeld of cocoa) and ndependent varables (chemcal, fertlzer, farm sze, seedlng, labour, age of cocoa tree, level of educaton and farmng experence). The F. value s 2.654, whch ndcates the jont relatonshp between exogenous and endogenous varables and sgnfcant at P<0.05.The coeffcent of fertlzer s and t s statstcally sgnfcant (P<0.05). t mples that fertlzer s a sgnfcant determnant factor on the cocoa farmers productvty n the study area. It mean a unt ncrease n fertlzer applcaton leads to a decrease n the cocoa farmers productvty. Ths s not n lne wth ncrease n fertlzer should lead to ncrease n output. The coeffcent of farm sze and t s statstcally sgnfcant (P<0.01). t ndcates that farm sze s a sgnfcant determnant of the cocoa farmers output. It also mples that a unt ncrease n the sze of farm land used leads to a ncrease n cocoa output.the coeffcent of seedlngs s and s statstcally sgnfcant (P<0.05). t means that seedlngs s a sgnfcant DOI: / Page

5 determnng factor n the cocoa farmers productvty/output. It mples that a unt ncrease n the number of seedlngs leads to a ncrease n the farmers output. Source: Feld Survey, Table 1: Soco-Economc Characterstcs of Cocoa Farmers Characterstcs Frequency Percentage Sex Male Female Age (years) >60 Mean: 55.40, S. D =N = 033 Level of educaton No formal educaton Prmary Secondary Tertary Farmng Experence (years) >45 Mean: 27.92, S. D= Farm sze (ha) >7 Mean: 2.819, S.D = Other occupaton Cvl savants Artsans Others No response Total DOI: / Page % 11.2% Table 2: Input Used n cocoa producton Characterstcs Frequency percentage Age of cocoa (Years) Mean = 26.9 SD. = Mode of land acquston Inherted Purchased Leased Others Age at frst harvest (year) > Mean = 5 years SD. = Source of captal Personal Savngs Cooperatve Frend and famly Loan Form of Labour Famly Hred Land acquston Communal Leased/rent Purchased Seed Acquston Nursed Buddng Others Chemcal acquston

6 Purchased Gft Others Chemcal applcaton Yes No Number of chemcal used None type types types Total Source: Feld Survey, Table 3 Operaton on the farm Source: Feld Survey, 2015 Table 4: Dstrbuton of respondents by problems encountered Problems Encountered Frequency Parentage Sngle Problems 4 4.5% Double Problems Multple Problems Total Source: Feld Survey, 2015 Table 5: Regresson Analyss of the Cocoa Farmers Proftablty Varable Coeffcent Std error T-value Probablty Constant Cost of chemcal 4.52 E Rent on land 7.29 E *** Tools/ equpment -8.14E Cost of seedlngs 1.88E *** Cost of Labour -9.88E *** R 2 = (Sgnfcant at P<0.1) F= *** = Sgnfcant at 10% Source: Prnt ant from Regresson Analyss Table 6: Regresson analyss of cocoa farmers productvty Varable Coeffcent Standard error T-value Probablty Constant Chemcal Fertlzer *** Farm sze * Seedlng *** Labour Age of cocoa tree Level of Educaton Farmng Experence R 2 = F=2.654 (Sgnfcant P<0.05) *= Sgnfcant at P<0.01 ** = Sgnfcant at P<0.05 Source: Prnt out from Regresson Analyss DOI: / Page

7 References [1] Aknyemju, O.A. (1995) "Weed management n cocoa farm" n cocoa revoluton n Ngera ed. by Adegeye A.J. and W.O.Ajay, adaptve research, group, Ibadan, Ngeran pp [2] Folayan J. A;Daramola G. A. and A. E.Oguntade(2006) Structure and Performance Evaluaton of Cocoa Marketng Insttutons n South-Western Ngera: An Economc Analyss. Journal of Food, Agrculture and Envronment. 2006; 4 (2): [3] Komolafe et al, (1980) Agrcultural scence for West Afrca schools and colleges, Unversty press, Brtan, chap 2. [4] Nkang, N. M; S. O. Abang, O. E. Akpan and K. J. Offem (2006): Co-ntegraton and Error Correcton Modellng of Agrcultural Export Trade n Ngera: The case of Cocoa.Journal of Agrculture and Socal Scences.2(4): [5] Opeke, L. K. (1982) Tropcal tree crops spectrum books lmted, Ibadan, Ngera Pp DOI: / Page