ECONOMIC PRODUCTIVITY OF COCOA PRODUCTION IN IDANRE LOCAL GOVERNMENT AREA OF ONDO STATE, NIGERIA

Abstract

Cocoa (Theobroma cacao Lineus) has remained a valuable crop and major foreign exchange earner among other agricultural commodity export of the Nigerian economy. In spite of its significance however, cocoa production in the country has witnessed a downward trend after 1971 season. The primary aim of this study is to determine the structure of costs and returns and   estimate Net farm income profitablity in  Idanre LGA Ondo state. To achieve this aim, 80 cocoa farmers were interviewed with the use of a well – structured questionnaire through a multi stage random sampling techniques. The cost and return analysis reveals that the net farm income per hectares for the average cocoa farmers is 605, 566 naira per hectare.  The efficiency ratio is 2.2 while the profitability ratio is estimated to be 1.21. That is out of every ₦1 invested, the average farmer made a profit of ₦1 and 20kobo. Production function analysis was used to determine the level of resource use efficiency of farmers. The estimated coefficients of agrochemical, farm equipment’s, and land were positive and significant at 1-5 percent alpha levels, but labour was not significant but positive.  Agrochemical and labour is currently being over-utilized on cocoa farms. This implies that   a decrease in use of these inputs or using less of these inputs in cocoa production is likely to increase profitability. That is decrease use of these inputs or using less of these inputs in cocoa production is likely to increase profitability Increased use of land and farm equipment would increase profitability on cocoa farms in the study area. The study therefore recommends that  farmers need to be guided to cut down on the use of agrochemicals and labor on their cocoa farms so as to increase profit. They should be provided with credit facilities from formal credit institutions at affordable interests.