Economic Analysis Of Pineapple Production

Economic Analysis Of Pineapple Production

Abstract

This study examines how effectively farmers produce pineapples in Nigeria’s Edo State. Descriptive statistics, the stochastic frontier production and cost function models, and a structured questionnaire delivered to 175 pineapple growers who were chosen using a multi-stage sampling procedure were used to evaluate the data. According to the findings, there were 24.0 percent female and 76.0 percent male pineapple farmers in the research region. An analysis of the budget showed that pineapple growing was profitable in the study region, with an average return of N1.27 kobo for every N1 invested. The study’s findings also showed that the technical, allocative, and economic efficiencies of the farmers were, on average, 0.70 percent, 0.68 percent, and 0.64 percent, respectively. This suggests that there is plenty of room for the farmers to improve their technical efficiency and boost productivity. It was discovered that farm size and labor were statistically significant and positively correlated with output, whereas respondents’ educational attainment, marital status, membership in a cooperative society, interaction with extension agents, and level of farming experience were adversely correlated with farmers’ technical inefficiency. The main factors limiting pineapple output in the research area were inadequate credit facilities (44%), weather and illness (35%), a poor road system, and high transportation costs (30%). The study suggests that more intensive land usage, the availability of high yielding pineapple varieties, and the effective and efficient use of labor and fertilizer inputs are all necessary to boost output.

Introduction to Chapter One:

1.1 Background to the Study

Despite relying on the oil industry for its budgetary earnings, Nigeria is essentially an agrarian nation because 70% of the population is actively involved in agriculture output at a sustainable level (WHO, 2006). This sector’s significance is especially apparent in developing nations like Nigeria, where it is the primary source of employment, food, and foreign exchange profits (Adebayo et al. 2005).

Nigeria is fortunate to have a favorable climate that encourages agricultural output. Nigeria can produce a wide range of cash crops, fruits, and vegetables thanks to its vast range of climate diversity. However, the trajectory in food production does not match Nigeria’s estimated 3.2 percent population growth. Nigeria’s food output has grown at a relatively slow rate. Population growth is estimated to be 3.2 percent while food growth is 2.65 percent, resulting in a 0.55 percent food shortage (CBN, 2007). Nigeria has a lot of natural potential for agriculture, but because of the drop in agricultural output brought on by the discovery of oil and gas, the nation has not been able to keep up with the rapid population growth. Abdullahi (2001) asserts that notwithstanding the inherent potential, the general lack of scientific and technological capacity will significantly restrict actual production. Public funding for agriculture is woefully insufficient due to a limited resource basis, competing demands for other developmental requirements, and other factors. inadequate prioritization, inadequate resource management, and a lack of sufficient political will could also be mentioned.