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THE PROFIT EFFICIENCY OF MORINGA OLEIFERA PRODUCTION IN OSUN STATE, NIGERIA
Views:439This study examined the profit efficiency of Moringa oleifera production by farmers in Osun State, Nigeria. Primary data were obtained from 150 respondents. Multistage sampling procedure was used for selecting respondents. The data were analyzed with the aid of descriptive statistics, budgetary analysis and stochastic frontier production function. The findings revealed that male predominate moringa enterprise with about 55.3% male, most producers fall between the age bracket 41-50years with a mean age of 44.92 (± 13.168) years and the average farm size is 0.3 hectares whilst indicating that most producers had less than 0.1 hectares of land. Moringa production had a benefit cost ratio of ₦5.852, profit margin of ₦0.182, expense structure ratio of ₦0.107, net return on investment ₦4.857, rate of return of ₦5.482 and profitability ratio of ₦0.981. The average profit efficiency of moringa producers was 18.73% on the profit frontier. Family labour, hired labour and transport cost were significant and had positive coefficient while the seed cost, pesticide cost, level of education and farm size are also significant but bears negative coefficient. The level of education and farm size are amongst the inefficiency variables considered. This study concludes that Moringa oleifera production is highly profitable but producers have not been able to maximize profit efficiency. It therefore recommends that producers improve on adding value to moringa products and extend their channels of distribution considering the cost incurred on transportation.
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Optimal crop plan of cooperative farmers in Osun state, Nigeria: a linear programming approach
Views:387Optimal level of production requires better use of existing resources at the lowest possible cost. Despite the inherent advantage of cooperatives to the agricultural sector, the question of how farmers under cooperative umbrella use farm resource for optimal outcome remains unanswered. This study investigates optimal crop mix for cooperative farmers in rural communities in Southwest Nigeria. Primary data were collected for the study through structured questionnaire. The data were fitted to Linear Programming Model. Three different cropping patterns are identified among the cooperative farmers. Based on the results from linear programming model, only maize, cassava and yam are admitted in the final plan and this combination is to be produced at 2.23 hectares. The gross margin value associated with the plan is ₦156, 235.781 (1$ = N365). Input resources such as land, labour, fertilizer, and chemicals are not fully utilized. The slack values for these inputs are 0.31, 651.20, 1929.6 and 140.76 respectively. The sensitivity analysis shows that seed/seedling is the only binding resource in the final plan with a shadow price which suggests that proper allocation of seed and seedlings would improve returns to cooperative farmers. There is need for appropriate farm management strategies to ensure optimal return for farmers. More education and training is suggested to boost cooperative farmers understanding of optimum strategy that is needed to improve production and earnings.
JEL code: Q10, Q13
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CONTRIBUTION OF COMMUNITY BASED ORGANIZATIONS IN ENHANCING RURAL COMMUNITY DEVELOPMENT: INSIGHTS FROM OSUN STATE, NIGERIA
Views:17This study examined the contribution of community-based organizations (CBOs) to rural community development in Osun State, Nigeria. Specifically, it described the characteristics of CBOs, identified their goals, types, and development projects, determined their contributions to rural development, and identified challenges limiting their performance. A multi-stage sampling procedure was employed to select 48 registered CBOs across the state, with 180 respondents. Data were collected through structured interview schedules and analyzed using descriptive statistics, while Pearson Product Moment Correlation (PPMC) was applied to test the study hypotheses. Results indicated that the mean years of formation of CBOs was 21.3 ± 9.5 years, majority had written constitution with a mean membership strength of 40±12 members. Primary goal of CBOs was economic empowerment of members (85.4%), The most prevalent CBOs included landlord associations and social groups. Most CBOs initiated erection of security gate at community entrance (75%) and provision of vigilante (70/8%). Provision of security for community and government property (mean = 2.83) and implementing of developmental projects (mean = 2.70) were s the most prominent contribution of CBOs. The major constraints affecting CBO performance were lack of funds (mean = 1.85) and lack of government support (mean = 1.51). Statistically significant relationships were observed between contribution and leadership tenure (r = -0.276, p ≤ 0.01), operational constitution (r = -0.406, p ≤ 0.01), and membership size (r = 0.299, p ≤ 0.05). The study concluded that despite the fact that CBOs contributed meaningfully to rural development, their potential remains constrained by limited institutional and community support. It is recommended that government should recognize and institutionalize the role of CBOs in rural development
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ACCESS TO CREDIT AND ITS INFLUENCE ON COCOA FARMERS’ WILLINGNESS TO PAY FOR EU-APPROVED PESTICIDES IN ONDO AND OSUN STATES
Views:12This study investigated the effect of credit access on cocoa farmers’ willingness to pay for EU-approved pesticides in Osun and Ondo State, Nigeria. A multi-stage sampling procedure was employed to select 240 cocoa farmers for the study. Data collected were analyzed with the aid of descriptive statistics, contingent valuation method and logit regression model. The results for the entire respondents showed average values of 46 years for age, 23 years for years of experience, 7 persons for household size, and 8.54 hectares for farm size. The majority (83.3%) of the farmers used Redforce. Given the current standard mean price of N365 per litre, the majority (62.5%) of the cocoa farmers are willing to pay 25% (price between N 365 – N 466) more on the actual price of the EU-approved pesticides. Logit regression estimates showed that gender, age, marital status, education, extension visit, access to credit, household size, farm size, and quantity of pesticide used significantly influenced cocoa farmers’ willingness to pay for EU-approved pesticides. This study concluded that credit access is an important variable affecting cocoa farmers’ willingness to pay for EU-approved pesticides. This suggests that policy strategies aimed at improving the cocoa farmers’ willingness to pay for EU-approved pesticides must consider their credit access. Based on the findings of the study, it was recommended that Government and agricultural-related organisations should provide credit to farmers to boost their willingness to pay for the approved pesticides.
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The effect of working capital on profitability of poultry egg enterprise in Osun State, Nigeria
Views:279This study investigated the effect of working capital on the profitability of poultry egg enterprise. Primary data were collected from 180 poultry egg farmers using two-stage sampling technique. Data were collected on the socio-economic characteristics such as age, gender, educational qualification, farming experience and flock size owned, quantities of inputs and outputs. Descriptive statistics, farm budgetary technique and ordinary least square model were used to analyze the data collected. The results from descriptive statistics show mean values of 42 years, 9 years and 5 persons for age, years of experience and household size, respectively. Majority of poultry egg farmers (52.2%) used their personal savings to fund their businesses while, some had access to loan from co-operative societies (37.2%), from SEAP microfinance (6.7%) and from banks (3.9%). Poultry egg producers invested their working capital on feeds (64.8%), rearing of poultry birds from day old chicks to point of lay (14.8%), account receivables (13.6%), drugs & vaccines (2.4%) and variable overheads (4.4%). A total cost of ₦5,494,927.04k was incurred by the poultry egg producers. Cost of feed accounted for 71.89% of the total cost of production. A total revenue of ₦9,388,555.60k and the net returns of ₦3,893,628.56k were realized. The net farm income per bird from the enterprise was ₦1,698.05k while the gross margin per bird was ₦1,795.32. The ordinary least squares regression estimates revealed that inventory, account receivable, operating cycle and flock size have significant effect on the profitability of poultry egg enterprises. The study concluded that poultry egg enterprise is profitable and working capital has a significant effect on the profitability of poultry egg enterprise. In light of the findings, the study recommended the expansion of the poultry flock size as well as reduction in the number of days of inventories, account receivables and operating cycle in order to increase the profitability of poultry egg enterprise.
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Nexus of non-farm enterprises and rural households’ livelihood: evidence from Nigeria
Views:284Agricultural sector in Nigeria is faced with diverse challenges that threaten the survival of rural households who constitute a significant proportion of the country’s population, thereby forcing them to diversify into alternative occupations outside farming. This study assessed the contributions of non-farm enterprises to livelihood of rural households in Osun State, Nigeria. The quantitative data were elicited from120 rural households’ heads across the state. The data collected analysis appropriate statistics. Results revealed that majority of rural households were involved in multiple non-farm enterprises and provide full-time employment for majority. Many were favourably disposed to contribution of non-farm enterprises to their households’ livelihood. Majority indicated that non-farm enterprises contributed moderately to their households’ livelihood. Income from non-farm enterprises, association membership and age were significantly correlated with the contribution of non-farm enterprises to rural households’ livelihood. It was concluded that non-farm enterprises play significant roles in sustaining the livelihood of rural households in the study area
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