Article Number: DRJAFS18712130

DOI: https://doi.org/10.5281/zenodo.3464170

ISSN: 2354-4147

Vol.7 (9), pp. 279-285, September 2019

Copyright © 2019

Author(s) retain the copyright of this article


Original Research Article

Economic analysis of profitability and determinants of productivity among cocoa farmers in Ondo State

Ajayi, Adedamola Mary*

Idowu, E. O.

Agunbiade, Moses Omotayo


Abstract

This study examined the profitability of cocoa farmers in Ondo State and determined their productivity determinants. Multi-stage sampling technique was used to collect primary data from 200 cocoa farmers. Data collected were analyzed using descriptive statistics, budgetary analysis and Ordinary least squares (OLS) regression models. The results revealed the mean age of the farmers was 55 years while men (82.5%) dominated cocoa production in the study area. The majority (90.5%) of the farmers were married, 60% had household sizes between six and ten persons with average of about 6 persons while they had average of 21 years in cocoa farming experience. The study also revealed that a mean of 2.35 hectares’ farm size was cultivated by the respondents. The study also showed that cocoa production is profitable with mean gross margin estimated to be ₦171,624.91 while the profit margin and benefit cost ratio were 44.8% and 1.81 respectively. The regression analysis result showed that household size, labour, farm size, improved seedlings, fertilizer and pesticide were the major factors influencing productivity of cocoa in the study area. The study recommended that cocoa production should be promoted to meet the needs of the expanding industrial sector, increase foreign exchange earnings, enhance job creation and increase farmers’ income. There is a need for more training programs on most efficient ways of production to increase productivity of cocoa in the study area.


Keywords: Cocoa, productivity, profitability, determinant

 


 Received: September 12, 2019  Accepted: September 26, 2019  Published: September 30, 2019

Ajayi Et Al


Copyright © 2019 Direct Research Journal of Agriculture and Food Science