Economics of onion production under cooperative and private schemes in Khartoum North, Sudan

Transcription

1 NAF International Working Paper Series Year 2015 paper n. 15/05 Economics of onion production under cooperative and private schemes in Khartoum North, Sudan Mahasin Mohammed Ahmed Abdalla Elhasan Ishtiag Faroug Abdalla Adil Ahmed Ali Ibrahim Agricultural Economics and Policy Research Center, Agricultural Research Corporation, Ministry of Agriculture and Irrigation, Sudan The online version of this article can be found at: 1

2 Scientific Board Maria Sassi (Editor) - University of Pavia Johann Kirsten (Co-editor)- University of Pretoria Gero Carletto - The World Bank Piero Conforti - Food and Agriculture Organization of the United Nations Marco Cavalcante - United Nations World Food Programme Luc de Haese - Gent University Stefano Farolfi - Cirad - Joint Research Unit G-Eau University of Pretoria Ilaria Firmian -IFAD Mohamed Babekir Elgali University of Gezira Luca Mantovan Dire Dawa University Firmino G. Mucavele - Universidade Eduardo Mondlane Michele Nardella - International Cocoa Organization Nick Vink - University of Stellenbosch Alessandro Zanotta - Delegation of the European Commission to Zambia Sassi Maria ed. Pavia -IT naf@eco.unipv.it ISBN

3 Economics of onion production under cooperative and private schemes in Khartoum North, Sudan Mahasin Mohammed Ahmed Abdalla Elhasan Ishtiag Faroug Abdalla Adil Ahmed Ali Ibrahim Agricultural Economics and Policy Research Center, Agricultural Research Corporation, Ministry of Agriculture and Irrigation, Sudan. Correspondent author Abstract This paper targeted to study the economics of onion production under cooperative and private production systems in Khartoum North at winter season 2012/13. The study deepened mostly in primary data collected through structured questionnaire. A sample of 43 farmers was selected randomly in the study area. The data analyzed using descriptive statistics, budget analysis and one-way ANOVA. The results revealed that; the average age of sampled farmers is about 42 years and majority of them were well educated. The cropped area, prices and cost of inputs are almost same among private and cooperatives. Sampled farmers showed higher level of urea fertilization, 78% use more than recommended dose. The yield showed significant variation to the favor of the cooperatives which affect their net return between systems that lead them to prefer the least cost one instead. In general farmers indicated that the onion net return reflected positively their livelihoods and their production constrains represented in fatigued agricultural land, flux of input prices and low quality, unavailability of suitable storage facilities, and the instability of onion market prices. Key words: Onion production, urea fertilizer, budget analysis, Khartoum North, Sudan 3

4 Introduction Khartoum State ranks top among other states in Sudan regarding to production and consumption of vegetables that relates to the higher increase in population growth, income level and nutritional awareness (Mohammed, 2005). The common onion (Allium cepa L.) is one of the most popular and important vegetable crops worldwide. Onion production and consumption are steadily increasing globally (Hassan, 2008).In Sudan onion is also one of the most important vegetables that cultivated in about 33 percent of the total area vegetables cultivated. About 273,000 bulbs are produced each year, representing about 25 percent of the country s total vegetable production (Dawelbeit et al., 2010). Onion is produced in almost all regions in the Sudan with the exception of the southern region (Abdelaziz, 2008). An estimated area of about 199,920 feddan (1 feddan = 0.4ha) is grown annually during different three periods. The main season is the winter, the period of October April, for market, limited dehydration and export. Another farmer group grows onion as an early crop, during June-January period. Third farmer group grows onion as late crop during November-June for storage (Hassan, 2008). Figure (l) shows the onion cultivated area and production in the Sudan during the period The main states for onion production in Sudan are River Nile, Gezira, Khartoum, North Darfur, West Darfur, Kassala, Blue Nile and Northern State (Ali, 2009). Area Production Area (000fed) Production (000ton) Year Figure 1: Onion cultivated area (000 feddan) and production (000 ton) in Sudan,

5 Source: Department of Horticulture, Federal Ministry of Agriculture and Forestry, In Khartoum State, onion is produced in the three provinces, Khartoum, Khartoum North and Omdurman (Abdelaziz, 2008). Onion cultivated area in Khartoum estimated as about 13% of Sudan onion cultivated area in The production of onion in the Khartoum North is mainly practiced in ElKhouglab, El Faki Hashim, Abu ferewa, Alkbashy, Alsagay, Altmaniyat, Alnaia, Gari, Wawisy and Wad Ramly (Ali, 2009). The total grown area by onion in Khartoum North is estimated at about 8,433 feddans as indicated by the Ministry of Agriculture (2013). In the study area, Khartoum North, farmers who interviewed are belonged to three schemes, one is private and two are cooperative production system. Below is the production relation between farmers and management for the three selected schemes. 1. Alsaied Ali scheme: Privately owned by Alsaied Ali sons, in an area is about 400 feddan, the most important crops that grown are onion, Faba bean, Alfalfa, Abu70 and Maize. The production system in this project is based on a partnership between project management (land owners) and farmers. Project Management provides arable land (two feddan for each farmer) and irrigation water while farmers are responsible from farming operations from planting to harvesting. If the farmer is financially capable to provide inputs then he did otherwise the scheme management provides them and then the value deducted from the total return. Immediately after the onion harvesting, the crop is sold by the project management who deduct the cost of inputs mainly seed, pesticides, fertilizer, harvesting, and empty sacks. Then divide the net return between farmer and project management equally (50%). 2. Wad Ramly cooperative: This project established in 1949, land area is about 2640 feddan, divided into 1200 Shares, each farmer owns one share (2.2 feddan). The cooperative provides irrigation water, the cost of irrigation water is varied from crop to another, due to the water requirements. Farmer pays the cost of irrigation water for onion 550SDG, which considered as the highest cost compared to other crops, at the end of the season farmer owned the onion harvested. 3. Dabak cooperative: This project established in 1977 with a total area as about 2000 feddan divided into 353 Shares, each farmer owns one share (1.25 feddan), with total cultivated area is about 1200 feddan. Production relationship is based on provision of irrigation water by the cooperative while farmer provides inputs and responsible of the agricultural operations. After harvesting, before deducting the production cost, the produced onion divided between cooperative, one third as water share, and farmer two third. Due to the different productions relationship between farmers in the study area, the profitability of onion and the main constrains that face its production will be in question. The general aim of this research intends to study the economics of onion among sampled farmers in Khartoum North area. 5

6 Materials and methods Methods of data collection: the study depended mainly on primary data. Semistructured questionnaire was used for data collection during the winter season 2012/13. The questionnaire was designed to fulfill the objective of the study. The collected information included socioeconomic information about the farmers, cropping pattern, input uses as fertilizer, seeds, pest control, weed control, etc and onion yield. Cost of production, marketing, crop prices are also gathered beside the constraints faced farmers in onion production. A sample of 43 farmers were selected randomly in the study area from three projects and two farms, Alsaid Ali (private scheme), Dabak and Wad Ramly (cooperative schemes) 18, 14 and 9 farmers respectively, 2 farmers from kadro and shambat. Data analysis: The descriptive statistics, budget analysis and one-way ANOVA (analysis of variance) to compare means of three schemes were carried out in the data by SPSS (Statistical Package for the Social Sciences). Results and Discussion Socioeconomic characteristics of sampled farmers: Table (2) shows that the average age of sampled farmers is about 42 years. With regard to the education level the majority of the sampled farmers are well educated, 46% and 12% for secondary school and University, in respectively. Few, 5% are illiterate and Khalwa levels while about 32% completed the basic school. Being well educated, farmers are expected to be more responsive to application of technology packages and have better understanding and knowledge of onion cultural practices. The survey shows that the majority of sampled farmers were married 74%. They work hard to enhance their income and income generation to secure a better live for their families. About 26 % of them are unmarried. Most of the sampled farmers are mainly farmers, 84%, while a few of them, 9% and 7% are employees and free works in respectively where practicing farming as secondary job. Table 2: Socio-economic characteristics of sampled farmers, Khartoum North, 2012/13. Item Mean % farmers Farmer age (year) 42 Educational level Not read/write Khalwa Basic Secondary University Marital status Single Married Main occupation Farmer Employee

7 Freeworks 7.0 Source: field survey, 2012/13. Onion's production area under cooperative and private production system: Total surveyed farm area was about fed which about 86.4 fed was grown onion and production is about sacks. Table (1) showed that about 42% of sampled farmers were from ALsaid Ali (Khilala) and 21% were from Wad Ramly while 33 were from Dabak. Table 1: Farm location of sampled farmers, Khartoum North, 2012/13. Farm site % of respondent farmers Average onion cultivated area ALsaid Ali (private) Wad Ramly cooperative Dabak cooperative Kadaro (private farm) 2 4 Shambat (private farm) 2 4 Source: Field survey, 2012/13. Types of farm land: Figure (2) shows that the main types of farm land reported by farmers in the surveyed area were high terrace as indicated by 77% of the farmers, kurro 21% and Jerif 2.0%. Growing in the higher terrace land indicate the trend of expansion in the agricultural activities and crop production in Khartoum North. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Land type High terrace Kurro Jerif Figure 2: Land type of sampled farmers, Khartoum North, 2012/13. Cropping pattern: Vegetables and forages were grown by farmers in the study area, only one farmer grown trees, banana and lemon in an area of about 4.5 feddan, and the remains area of 7

8 his farm was grown by onion 100%. About 30% of the interviewed farmers are grown some food crops on ridges mainly for household consumption. The grown crops among sampled farmers are faba bean, beans, chickpea, potato, forages, and tomato (Table 3). Forage showing relatively large expansion as grown by about 30% of respondents on about 3.3 feddan on average. Table 3: Cropping pattern of sampled farmers, Khartoum North, 2012/13. Crop Area (fed) % of respondent farmers Onion Tomato Potato Faba beans Beans Alfalfa Maize Abu Trees: Banana Lemon Source: Field survey, 2012/13. Source of onion seed: Figure (3) shows that 51% of the sampled farmers bought onion seed from Ministry of Agriculture, Khartoum State (local production). This ratio showed the trust in the source and willingness to benefits from the onion improved seeds in production and return. About 21% of respondents bought the onion seeds from the Market (local and imported seeds) while 26% of them from the neighbor framers (previous crop harvest). The main variety grown by sampled farmers is paftaim variety which is improved and recommended by research % of respondents Ministry of Agriculture Local Market Project Management Source of onion seeds 2 Figure 3: Source of onion seed (% farmer), Khartoum North, 2012/13. Onion area, seed rate and number of irrigation: 8

9 Average onion cultivated area among sampled farmers is 2 feddan. The average seed rate is 2.2 kg/feddan and the number of irrigation is 12 during the season with an irrigation interval of 10 days between (Table 4). Table 4: Onion area, seed rate, number of irrigations and irrigation intervals in Khartoum North, 2012/13. Item Mean Onion area (fed) 2 Seed rate (kg/fed) 2.2 Number of irrigation/season 12 Irrigation interval (days) 10 Source: field survey, 2012/13. Onion cultivation date is varied among sampled farmers. While some of them grow onion during September and October, 16%, others, 21% grow onion during November. The majority of the sampled farmers, 60.8%, grow onion during December and January. The sowing method is seedlings (100%) % of respondents September October November December January Onion sowing date Figure 4: Onion sowing date among sampled farmers in Khartoum North, 2012/13. Fertilizer: Source of fertilizer: Figure (5) shows that 70% of the sampled farmers obtained fertilizers from Bahri Market, 12% from Project Management, 9% from Agricultural Bank and 7% from Shambat Central Market (Bahri). Sampled farmers indicated that the Project management provides the fertilizer at a higher price than the market therefore farmers preferred to obtain fertilizer from the market. 9

10 % of respondents Bahri Market Agricultural Bank Shambat Central Market (Bahri) Project Management Omdurman Market Source of fertilizer Figure (5): Source of fertilizer (% farmer), Khartoum North, 2012/13. Types and different doses of fertilizer: Ali (2009) indicated that most of the experiments conducted in different research centers, especially in the Hudeiba and Gezira research stations, that the rate of Nitrogen recommended in onion cultivation is 46 kg /feddan given in two equal doses where in total each feddan given 100 kg of urea and 45Kg of superphosphate. In this study the sampled farmers used different types of fertilizers such as urea, super phosphate, foliar and organic fertilizer (animal dung). On the average, 22% of sampled farmers added recommended dose of urea 100 kg/fed, while the majority of them, 78%, applied more than recommended dose of urea 200 kg/fed. The variation in urea dose did not show any significant differences among sampled farmers. About 14% of the sampled farmers applying super phosphate with an average of about 133kg/ feddan. 21% of sampled farmers applied foliar fertilizer 1.7 liter/feddan on the average and only one farmer used organic fertilizer (animal dung), see Table 5. Although Farmers who used more than recommended doses obtained the same productivity of farmers who used recommended doses 124 sack/ feddan, farmers claimed that the soil is stiffness and poor fertility. The majority of sampled farmers, 76%, depend on their self experience in agriculture in compare to 18% that consult extension agents while the remains, 5% account on both self experience and extension advises. 10

11 Table 5: Types and different doses of fertilizer, Khartoum North, 2012/13. Item Average doses of % of respondent fertilizer (kg/fed) farmers Recommended (Urea) More than recommended (Urea) Super phosphate Foliar(liter/fed) Organic fertilizer Source: field survey, 2012/2013. Weed control: Table (6) shows that 72 % of the sampled farmers controlling weed manually and using chemicals, 19% use chemical only and 9% practiced hand weeding. About 41% of sampled farmers weeded their land once and 59% applied two or more hand weeding. Table 6: Weed control (% farmer), Khartoum North, 2012/13. Weed control Methods: Manual Chemical Manual and chemical % of respondent farmers One weeding 41 Two or more weeding 59 Source: field survey, 2012/13. Pest control: The most important pests mentioned by sampled farmers are Onion Thrips, Aphids and White fly. About 83% of the sampled farmers controlled pests in onion crop using various types of pesticides, 20% of them used Karte and the same percentage used Malathion. Gross margin analysis for onion: Production cost is varied among the three sampled production schemes. Means and prices are varied as shown in table 7. These variations lead to significant variation in yield among the three groups (F= 5.163**). It is evident from Table (7) that the net return of onion production in Wad Ramly project was the highest 30793SDG compare to Dabak project SDG and Alsaied Ali scheme 11186SDG, although the yield in Dabak project (148 sack/fed) was higher than Wad Ramly project 135 sack/fed and the lowest in Alsaied Ali scheme 100 sack/fed But the onion selling prices per sack for Wad Ramly farmers was higher 268SDG than the price selling per sack for Dabak farmers 168SDG. The SDG/sack price showed highly significance (F= ***). Farmer s share in Wad Ramly project was the highest and profitable 30243SDG while the Share of land and water was the lowest 550SDG, Dabak farmers considered the share of land and water was very high SDG compared to the above mentioned 11

12 projects, which entail the some farmers to rent agricultural land in Wad Ramly to cultivate onion crop. Alsaied Ali farmers think that the share system in this scheme is offering alternatives to the farmer especially for those who are not financially capable to buy the production inputs, as seeds and fertilizer; the scheme management provides them at higher price than the market price. All of the sampled farmers indicated that the onion net return reflected positively and improved their livelihoods, where some of them built new rooms and others bought conditioners and refrigerators. Table 7: Detailed budget of onion production (SDG/fed), Khartoum North, 2012/13. Item Average cost (SDG/ fed) Alsaied Ali scheme (private ) Dabak (cooperative) Wad Ramly (cooperative) Leveling Ploughing Seeds Seed dressing Herbicide Pesticide Weeding Urea fertilizer Foliar and super phosphate fertilizer Harvesting Empty sacks Strings Supervision Total cost (SDG) Yield (sack/fed) Price of sack(sdg) Return of fed(sdg) Net return(sdg) Share of land and water % 50% of net return ⅓ of onion - production Share of land and water(sdg) Farmer s share(sdg) Source: field survey, 2012/13. Constraints: Respondents were directly asked about the problems related to inputs of onion production and agricultural services. The reflections were listed as below. 12

13 Problems of land and soil: Surveyed farmers were asked about natural problems in their land. About 30% reported heavy infestation weeds as the main problems followed by Soil stiffness and poor fertility of soil 13%, see Table (11). Problems of water: Dabak famers indicated that the cost of onion irrigation is very high as reported by all of them. The majority of Alsaied Ali farmers, 55%, indicated the low capacity of irrigation pumps and 45% of them referred to that their farms are far from water source, see Table (11). Problems of production: From Table (11), 37% of sampled farmers mentioned that the production cost of onion was high due to the high cost of inputs. In spite of all that the net returns was the highest compared to production cost. Storage loss has been reported by about 9% of sampled farmers. It ranges between 2%-80% with an average of about 28%. Problems of inputs: 25% of sampled farmers obtained impurity of seeds and price of it was high and 7% of them obtained the seed in a late time. Problems of finance and marketing: All sampled farmers depend on either self finance or the partnership system. About 16% of them had a problem of financing. 18% of sampled farmers mentioned that the low prices at the beginning of the crop harvest where some of them store their crop and sell it after the price rises. Table 11: Problems and Constraints of onion production, (% farmers), Khartoum North, 2012/13. Item Problems of land and soil Weeds Soil is exhausted Problems of water High cost of irrigation Weakness of irrigation pumps The farm far from water Problems of production High cost of production Crop damage during the period storage Problems of inputs impurity of seeds and high cost of inputs delayed of input Problems of finance and marketing Lack of finance marketing and Fluctuating of prices Source: field survey, 2012/13. % of respondent farmers

14 Conclusion: Private and cooperative onion producing farmers was surveyed in Khartoum North The general information was collected from onion producers and the economics of onion crop was studied. Cropped area, prices and cost of inputs are almost same among private and cooperatives while yield showed some variation to the favor of the cooperatives. (F= 5.163**). This variation entail differences in net revenue where farmers share is varied (50 of net revenue, one third of onion production and water charges). These differences lead the farmers to prefer to be engaged in the least cost system. Exhausted agricultural land, instability of input prices and low quality, unavailability of suitable storage facilities, and the instability of onion market prices are being the main challenges to onion production in the study area. Respondent farmers indicated that the onion net return reflected positively and improved their livelihoods, which reflected in improvement of home environment and assets owned. Reference: Abdelaziz, H Economics of onion production in the Northern part of Omdurman province, Khartoum State Albuhuth, 12(1): Ali, G.H.M, Onion in the Sudan: production- storage- breeding, Publisher University of Khartoum, report in Arabic. Dawelbeit, S.E., Salih, F.M., Dahab, O.A. and Ahmed, E.H., Status of Fertilization and Crop Nutrition in Irrigated Agriculture in Sudan 2: Main Crops Consuming Fertilizers and the Role of Education in Optimizing Fertilizer Use. e-ifc, No. 23, June Federal Ministry of Agriculture and Forestry, Different Annual Reports (2003/2011). Department of Horticulture, Statistics and Information Section, report in Arabic. Hassan, K. A, Assessing relative efficiency of two breeding methods for the improvement of yield and quality of the local Sudanese onion variety (Allium cepa L.) Abu Ferewa. Unpublished M. Sc. thesis, Sudan Academy of Science (SAS). Mohammed, M.A., Economics Production of Tomato in Khartoum State. M.Sc. Thesis, Faculty of Agricultural Studies, Sudan University of Science and Technology, Sudan State Ministry of Agriculture, Annual report, General management of Agricultural Services, field management, Khartoum State report in Arabic. 14