Abuja Journal of Agriculture and Environment (AJAE)

ECONOMICS OF COCOA PRODUCTION IN SOUTH WESTERN NIGERIA
Author(s): Awotodunbo, A.A., Suleiman R., Bakut, M.P., Oyeledun, A.T., Suleiman, R.A.,Adaaja, B.O., Khidir, H.Y and Otiwa, G.I
Volume/Issue: Volume 2 , Issue 1 (2022)

ABSTRACT:

The study assessed the economics of cocoa production in South Western Nigeria. The study specifically described the socioeconomic characteristics of cocoa farmers; determined the profitability of cocoa production; assessed cocoa production performance and determined factors influencing cocoa production in the area. 120 cocoa farmers were sampled using multi-stage sampling procedure from 4 Agricultural Development Programme (ADP) zones in Ondo and Ekiti States, Nigeria. Data collected through well structured questionnaire were analysed using descriptive statistic, budgeting techniques, profitability and efficiency ratio as well as multiple regression. The result of the study showed that the mean age of the cocoa farmers, the mean farm size of cocoa cultivated and the mean years of experience in cocoa production was55.5 years, 3.14 hectares and 21 years respectively. The result also revealed that a total profit of₦10,216,666.50 per year was realized by cocoa farmers in the production season. Age of the cocoa farmers, farm size and years of experience in cocoa production were factors revealed to critically influence cocoa production in the area as these factors were found to be statistically significant at different levels of probability. The study concluded that cocoa production in the area is a profitable enterprise. To increase cocoa output and also contribute significantly to the country foreign exchange earnings, State government in South Western Nigeria should encourage cooperative farming among cocoa farmers and also allocate substantial farmland to true and performing cooperative groups. This will facilitate expansion of cocoa farm holding among the cooperators.

KEYWORDS:

Cocoa, South Western Nigeria, Agricultural Development Programme, Budgeting Technique.