Economic Analysis of Cocoa Production Cropping Pattern in Nigeria, West Africa
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Apr 30, 2023
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Abstract
Cocoa is the most prominent export crop in Nigeria in terms of its production and export capacities. There is dearth of literature on the profitability of the different cropping systems. This study therefore examined the profitability of the different cocoa cropping systems and the factors that affect the revenue of cocoa farmers for each of the cropping systems. The study area was Nigeria and information were collected from one hundred and eighty farmers using well-structured question- naires. Descriptive statistics, budgetary analysis and linear regression were used for analysis in this study. The study revealed that twenty-seven farmers practised sole cocoa cropping, seventy-five farmers practised cocoa/arable cropping and seventy-eight farmers practised cocoa/tree cropping systems, respectively. The mean age of farmers in sole cocoa cropping system was 49.3 years, for cocoa/ arable cropping system the mean age was 47.8 years while for cocoa/tree cropping system the mean age of farmers was 47.2 years. For sole cocoa cropping system, the total cost (TC) was USD 7,764; the gross revenue (GR) was USD 43,774 with USD 36,009 as profit made from the cropping system. The TC for cocoa/tree cropping system in Nigeria was USD 18,003, GR was USD 124,104 and the profit was USD 106,102. Similarly for cocoa/arable cropping system, the TC was USD 16,215, GR was USD 109,849 and profit was USD 93,634. The determinants for the three cocoa cropping systems were age, gender, marital status (married), educational level (primary), cost of seedling, cost of fertilizer, cost of fungicide, cost of herbicide, labour cost for bush clearing, land preparation, weeding and planting. Cocoa/tree and cocoa/arable cropping systems were more profitable than sole cocoa cropping systems. However, cocoa/ tree cropping system was more profitable with a value of USD 106,102.
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Oladokun, Y., Oluyole, K., Akinpelu, A., & Orisasona, T. (2023). Economic Analysis of Cocoa Production Cropping Pattern in Nigeria, West Africa. Pelita Perkebunan (a Coffee and Cocoa Research Journal), 39(1). https://doi.org/10.22302/iccri.jur.pelitaperkebunan.v39i1.542
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References
Adebile, O. A., and Amusan, A. S. (2011). The non-oil sector and the Nigeria economy a case study of cocoa export since 1960. International Journal of Asian Social Science, 1(5), 142-151.
Akinniran, T. N, and Taiwo, K. B. (2016). Economic Analysis of Cocoa Production in Ilesha Metropolis of OSUN State, IOSR Journal of Agriculture and Veterinary Science, 9(10):82-88.
Adebile, O. A., and Amusan, A. S. (2011). The non-oil sector and the Nigeria economy a case study of cocoa export since 1960. International Journal of Asian Social Science, 1(5), 142-151.
Austin, O. C., Ulunma, A. C., and Sulaiman, J. (2012). Exploring the link between land fragmentation and agricultural productivity. International Journal of Agriculture and Forestry, 2(1), 30-34.
FAOSTAT (Food and Agricultural Organization of United Nations (2021) http://www.fao.org/faostat/en/data
Folayan, J. A., Daramola, G. A. and Oguntade, A. E. (2006) Structure and Performance Evaluation of Cocoa Marketing Institutions in South-Western Nigeria: An Economic Analysis. Journal of Food, Agriculture and Environment, 4 (2): 123-128.
Kirti, A. (2022). Top seven theories of profit with criticism. Retrieved from https://www.economicsdiscussion.net/theories-of-profit/top-7-theories-of-profit-with criticisms/21072. 24/12/2022.
Lennon, A. M., Vernessa, R. L., Aidan, D. F., and Pathmanathan U.(2021), Genetic Variation in High Light Responses of Theobroma cacao L. accessions. Heliyon 7: 1-11.
Nkang, N.M., Ndifon, H.M. and Odok, G.N. (2007) Price Transmission and Integration of cocoa and Palm Oil Markets in Cross River State, Nigeria: Implications for Rural Development, Agricultural Journal 2(4): 457-463.
Nkang, N. M., Ajah, E. A., Abang, S. O., and Edet, E. O. (2009). Investment in cocoa production in Nigeria: A cost and return analysis of three cocoa production management systems in the Cross River State cocoa belt. African Journal of Food, Agriculture, Nutrition and Development, 9(2): 713-727.
Oluyole, K.A. and Sanusi, R.A. (2009). Socio-Economic variables and cocoa production in Cross River State, Nigeria. Journal of Human Ecology, 25 (1): 5-8.
PricewaterhouseCoopers Limited (PwC, 2016). Transforming Nigeria’s Agricultural Value Chain: A case study of Cocoa and Dairy Industries. Nigeria: PwC.
Reviving cocoa production and export (punchng.com) assessed 03/01/2022.
Victor, A. O., and Onyeukwu, P. E. (2022). Agricultural Commodity Export and Nigeria’s Gross Domestic Product Between 2009 to 2018. International Journal of Innovation and Economic Development , 8(2): 7-33
Walker, E.A. (2000). “Happy Days Are Here Again”: Cocoa Farmers, Middlemen Traders and the Structural Adjustment Program in Southwestern Nigeria, 1986–1990s. Africa Today 47(2):151–69.
Akinniran, T. N, and Taiwo, K. B. (2016). Economic Analysis of Cocoa Production in Ilesha Metropolis of OSUN State, IOSR Journal of Agriculture and Veterinary Science, 9(10):82-88.
Adebile, O. A., and Amusan, A. S. (2011). The non-oil sector and the Nigeria economy a case study of cocoa export since 1960. International Journal of Asian Social Science, 1(5), 142-151.
Austin, O. C., Ulunma, A. C., and Sulaiman, J. (2012). Exploring the link between land fragmentation and agricultural productivity. International Journal of Agriculture and Forestry, 2(1), 30-34.
FAOSTAT (Food and Agricultural Organization of United Nations (2021) http://www.fao.org/faostat/en/data
Folayan, J. A., Daramola, G. A. and Oguntade, A. E. (2006) Structure and Performance Evaluation of Cocoa Marketing Institutions in South-Western Nigeria: An Economic Analysis. Journal of Food, Agriculture and Environment, 4 (2): 123-128.
Kirti, A. (2022). Top seven theories of profit with criticism. Retrieved from https://www.economicsdiscussion.net/theories-of-profit/top-7-theories-of-profit-with criticisms/21072. 24/12/2022.
Lennon, A. M., Vernessa, R. L., Aidan, D. F., and Pathmanathan U.(2021), Genetic Variation in High Light Responses of Theobroma cacao L. accessions. Heliyon 7: 1-11.
Nkang, N.M., Ndifon, H.M. and Odok, G.N. (2007) Price Transmission and Integration of cocoa and Palm Oil Markets in Cross River State, Nigeria: Implications for Rural Development, Agricultural Journal 2(4): 457-463.
Nkang, N. M., Ajah, E. A., Abang, S. O., and Edet, E. O. (2009). Investment in cocoa production in Nigeria: A cost and return analysis of three cocoa production management systems in the Cross River State cocoa belt. African Journal of Food, Agriculture, Nutrition and Development, 9(2): 713-727.
Oluyole, K.A. and Sanusi, R.A. (2009). Socio-Economic variables and cocoa production in Cross River State, Nigeria. Journal of Human Ecology, 25 (1): 5-8.
PricewaterhouseCoopers Limited (PwC, 2016). Transforming Nigeria’s Agricultural Value Chain: A case study of Cocoa and Dairy Industries. Nigeria: PwC.
Reviving cocoa production and export (punchng.com) assessed 03/01/2022.
Victor, A. O., and Onyeukwu, P. E. (2022). Agricultural Commodity Export and Nigeria’s Gross Domestic Product Between 2009 to 2018. International Journal of Innovation and Economic Development , 8(2): 7-33
Walker, E.A. (2000). “Happy Days Are Here Again”: Cocoa Farmers, Middlemen Traders and the Structural Adjustment Program in Southwestern Nigeria, 1986–1990s. Africa Today 47(2):151–69.
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