COMPARATIVE STUDY ON THE ECONOMIC EFFICIENCY OF CASSAVA PRODUCTION IN ABIA STATE

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COMPARATIVE STUDY ON THE ECONOMIC EFFICIENCY OF CASSAVA PRODUCTION IN ABIA STATE

(A STUDY OF SELECTED COOPERATIVE SOCIETY IN ABIA STATE)

ABSTRACT

The research study carried a comparative study on the economic efficiency of cassava production in Abia state with a cases study of selected cooperative society in Abia state. Information was gathered from 105 farmers and analyzed to describe the farming systems and the socio-economic characteristics of Abia cassava farmers, estimate the profitability of cassava production, analyze the factors that affect profitability of cassava and identify and analyze the factors that influence the rate of technology adoption and identify the constraints to increased cassava production in the study area. Multi-stage random sampling technique was used to select the local government areas, communities, villages and the farmers. The primary data were analyzed using both descriptive and inferential statistics. It was found that majorities (85.7%) of the farmers are educated and labour is the most expensive resource used. The result further showed that about 11,900kg (11.9 tons) of cassava tubers and 900kg (0.9 tons) of cassava stems were realized from 1.0 hectare of land with total revenue of N589, 300. The study further revealed that inefficiency was present in the production activities of the farmers in the study area; hence they did not achieve maximum technical and economic efficiency. However the farmers’ level of technical efficiency (79%) was higher than their economic efficiency (61%). The identified problems include, high labour cost, scarcity of farm inputs, poor extension services, low income, illiteracy and low productivity. The study therefore recommended extension of credit facilities to the farmers, timely supply of inputs at cost effective prices, farmers’ education, more efficient and effective extension services, introduction and use of tractor technology and encouraging farmers to reshuffle their expenditure pattern in order to allocate more income for re-investment in cassava production.

CHAPTER ONE

INTRODUCTION

1.  1     Background of the Study

In Nigeria, agriculture has contributed almost 60 percent of GDP and greater than 70 percent of foreign exchange income. Cassava is the most important food-processed cash crop of resource-limited farmers in Africa, Asia, Latin America and Caribbeans. In addition to contributing to the Gross Domestic Product, it is the greatest non-oil export earner, the greatest agency of labour, and the biggest contributor to the introduction of wealth and the alleviation of poverty, as massive share of the populace derives its earnings from agriculture and related crop for foreign exchange earnings (Onyenwoke and Simonyan 2014). Cassava is the perfect food security crop for sub-Saharan Africa because of its capacity to produce in poor environments. Cassava can be cultivated with minimal inputs, but produces substantially more fertilizer and better management production.

Cassavas play a major role in agriculture, particularly in sub-Saharan Africa, as they grow on poor soils and low rainfall. It’s a crop that can be harvested perennially as needed. It has a remarkable capacity to withstand and recover from the pressure of biotics and abiotics. Cassava acts as a hunger buffer to reduce farmers ‘ poverty. Nigeria is currently the world’s largest producer of cassava, generating one-third more than Brazil, almost doubling Thailand and Indonesia’s production capacity and producing around five million metric tons per year (FAO, 2013, Anyanwu et al., 2015). This increase in production was attributed to a host of factors such as; the availability of many improved varieties of cassava following the research effort of I1TA, the joint effort of African leaders for agricultural transformation through which basic farm inputs were made available to farmers (Ahmed-Hameed et al., 2017).

Nigeria, cassava has a wide range of uses. Today, cassava is moving from a mere surviving crop in the farmer field to a commercial plantation crop. This exponential growth of this crop is attributable to its finding as a cheap source of edible carbohydrates which can be consumed in raw or processed form as foods like garri, fufu, tapioca, starch, pellets, carbohydrate, alcohol biofuel for vehicles, flour and chips. In Nigeria, the majority of cassava produced (90%) is used for human food (IITA, 2010, Kamaljit and Preeti, 2017). Owing to the wide range of uses occupied by cassava in addressing rural poverty, the smallholder peasants who produce the bulk of cassava in Nigeria continue to be economically inefficient in terms of resources management.

Cassava is ranked the 6^th most important crop in the world in terms of area planted and production (FAO, 1986). Africa is the highest cassava producer in the world, and more than 100 million people in tropical Africa depend on it as their dietary staple (FAO, 2008). Globally, among the world’s producing regions, West Africa is known to have the greatest share of the world’s production of cassava (FAO, 2008). Interestingly, Nigeria is the largest world producer of cassava with yearly production of fresh tubers estimated at 10-13 million tons on a land area of 1.2-1.4 million hectares (NAQAS, 2002). Nigeria’s lead on cassava production in the world has been achieved through expansion of land areas devoted to cassava cultivation (Ano, 2003). Of Africa’s 72.7 million tons of cassava output in 1990, 26 million tons were produced in Nigeria (Ezedinma, 2003). Cassava is widely grown in Nigeria. For decades, cassava has been cultivated as a subsistence crop in Nigeria. Currently, cassava cultivation has become an income generating activity. This “enhanced” status is as a result of increased demand for cassava and cassava products outside the rural communities (Ikpi et al 1986), as well as the realization of the potentials it has for contributing to the attainment of self-sufficiency in food production (Kwatia, 1980).

Cassava is well-known for being able to grow and produce food even in very poor soils. For that reason, it is often grown at the margins of farms where the better land has been reserved for the production of grain crops. In addition, once established, cassava is relatively drought tolerant and when matured can survive up to six months without rains. Cassava’s productive capacity in low-input conditions comes at a certain cost in terms of carbohydrate quality and protein concentrations. Cassava’s ability to produce food under marginal conditions has made it a popular crop of Africa’s poor farmers who are unable to invest in fertilizer or pesticides to protect the crop against environmental stresses and biotic constraints (Ezedinma, 2006).

Presently, cassava production is in the hands of small-holder farmers who rely predominantly on simple tools like the hoe and cutlass powered by human effort. In 2002, the Government of Nigeria launched a presidential initiative on cassava. The aim of the initiative was to develop cassava as the engine of growth and diversify Nigeria’s economic base away from its principal export-crude oil. If investments in the downstream sector of the cassava industry are made more effective, cassava can be used to improve rural and urban income and employment in Nigeria (Ezedinma and Okechukwu, 2007). But the initiative will be threatened if no substantial effort is made to improve the current production systems. The requirements of consistent supply of large volumes of fresh roots by cassava-based industries cannot be supported by the current production systems. The critical constraints, however under such production systems is labour cost which lies between 70 and 90% of total variable cost of production (Ezedinma, 2000 and Okorji , 1985) in small holder farming.

Economic and efficient cassava production means the ability of a given input and production technology to attain the optimum level of output. The ability of a farm to produce a certain production level with the lowest resources is farm efficiency. The optimal way to produce a commodity is to use the lowest amount of resources to achieve a certain production level (Ogunyinka and Ajibefun ,2003).To reach an optimal production level, resources must be made available and the resources available should be used effectively. Successful results-oriented agricultural development and strategies require knowledge of farm supply productivities to identify the resources whose quantity or use level should be amplified or reduced (Agbontale and Issa, 2011). Based on this, the focus is now on cassava production by small scale farmers, who make up the majority of Nigeria’s farmers (Ojimba, 2017). It is against this background that this study seek to carry out a comparative study on the economic efficiency of cassava production in Abia state (A study of selected cooperative society in Abia State.

1. 2 Problem Statement

Cassava is one of the major root crops in Abia state and following the presidential initiative on cassava in 2002, there has been an increased awareness and demand for the crop in the state till date (ABSG, 2006). This pre-supposes that increased land area will be put into cultivation. Onyenweaku and Okoye (2005), noted that cassava production in Abia state no longer keep pace with demand, in spite of the high potential for increasing its production by expanding the area under cultivation. Ezebuiro et al (2008) observed that Abia cassava farmers are peasants and are poorly endowed in terms of resources; yet they account for the production of up to 95% or more of food produced for consumption in the state. The inadequate use of improved inputs consequent upon the low resource endowment of the Abia cassava peasant farmers has made Abia agriculture to remain at the rudimentary and traditional level. The implication is increased drudgery and reduction in output. This might not be unconnected with the level of cassava farmer’s efficiencies (technical, economic and allocative). A fundamental requirement for correcting this problem is only through improvement in productivity of cassava farmer’s. In this context, technical and economic efficiency in the production of the crop is of paramount importance.

Available statistics show that despite increases in awareness and demand for cassava in Abia state consequent upon the presidential initiative, the objectives of sustainability has remained a mirage as its production has not kept pace with demand (Onyenweaku and Okoye, 2005). Given that cassava is an important staple food in Abia state, any attempt to increase its production and the farmers’ productivity would be a right step towards the resolution of the food crisis. Considering the recent increasing trend of demand for cassava cuttings (Onyenweaku and Okoye, 2005) it is envisaged that farmers may have adopted improved varieties and other technologies to strengthen their economic base. Furthermore, their adoption could depend on the yields realized by the farmers. Actually, farmers place a high value on maximum food security, psychological and/or cultural satisfaction. It is a known fact that it is primarily because of the poor resource base that the small-scale farmers are slower in adoption than the large-scale farmers.

It is essential to understand the socio-economic and demographic factors that play leading role in the production process of cassava in order to achieve maximum outputs in Abia state. Generation of such information is critical in focusing programmes, in developing long term research policies and in understanding the subsistence farming situation. Therefore based on the aforementioned, this study would examine the economics of cassava production in Abia state. This would be with a view to identifying and quantifying social and economic factors affecting production; evaluating how resources could be deployed to increase resource efficiency, productivity, profitability of the enterprise and increased adoption of the innovations available in the multi-cropping system of subsistence producers in the humid rainforest ecology of South-Eastern Nigeria, with particular reference to Abia state. It is against this problem that this study seek to carry out a comparative study on the economic efficiency of cassava production in Abia state (A study of selected cooperative society in Abia State.

1. 3 Objectives of the Study

The general objective is to carry out a comparative study on the economic efficiency of cassava production in Abia state (A study of selected cooperative society in Abia State.

The specific objectives are to;

• Describe socio-economic characteristics of the cassava farmers and the farming systems adopted in cassava production in Abia state,
• Estimate the cost implications and returns to cassava enterprise in Abia state,
• Estimate technical  and economic efficiencies of cassava farmers’ in Abia state,
• Identify and estimate the determinants of farmers technical and economic efficiencies,
• Identify and analyze the factors that influence the rate of technology adoption and the intensity of use after adoption by the farmers in Abia state and,
• Identify the constraints to increased cassava production Abia state.

1. 4 Research Hypotheses

In line with the research objectives, the following hypotheses were tested.

• Cassava farmers in Abia state are not technically and economically efficient.
• Intensity of technology used is not influenced by the farmers’ socio-economic characteristics (age of the farmers, level of formal education, farming experience and household size).

1. 5 Justification of the Study

The study is justified in many ways. Firstly, the problem of inadequate supply of cassava to the growing population is the concern of most farmers and the Government. Secondly, cassava production has not kept pace with the improved varieties and technologies available in Nigeria. Thirdly, cassava is a very important food crop plant in Nigeria and Nigeria is the largest world producer of cassava with yearly production of fresh tubers estimated at 10-13 million tons (NAQAS, 2002).

Farmers and General Public: The ever increasing importance of cassava as a food crop in Nigeria calls for effort to increase its production. This is more so, when improved varieties and technologies for cassava production are available. Abia state farmers have been constrained from increasing their cassava production, despite increasing demand for the product. It is therefore important that the practices adopted by the farmers are evaluated and the efficiency/productivity of various resources used in the production, as well as the constraints to increased cassava production be examined.

Government: The government will benefit immensely from this study in terms of provision of adequate policies that will enhance efficient utilization of available resources thereby achieving increased productivity and growth. More so, the National Root Crops Research Institute, Umudike and Abia state Agricultural Development Project have distributed millions of high yielding, disease and pest resistant cassava cuttings to farmers, youth organizations, women organizations and Local Government Areas in Abia state and beyond. This research will assist the individual farmers, government and international organizations interested in cassava farming to be more focused and research oriented by ensuring that the right varieties are used and appropriate techniques adopted.

Contribution to Existing Knowledge: Efficiency study with respect to production enables one to test the presence of and measure the level of efficiency in production, thus making theory to come close to real life situation (Ajibefun and Aderinola, 2003). Empirical measures of efficiency are necessary in order to determine the magnitude of the gains that could be obtained by improving performance in agricultural production with a given technology. To this end, a study of farm level efficiency would be a useful guide to policy makers in ascertaining pro-poor agricultural initiatives which will help farms to operate efficiently and therefore able to prosper and generate higher income. The study will be of great importance in suggesting ways of improving the efficiency of cassava farmers in the state.

Researchers: Ample information on optimizing the resources available to cassava farmers will be provided by this study thus boosting cassava production in the study area. This research will also serve as a baseline on which other research work on efficiency would be compared using the same methodology. It is hoped that such a study will provide clearer insight into the dynamics of cassava production and would therefore be useful in assisting agricultural policy makers and national development planners in their formulation of national policies especially as they affect cassava production in Nigeria. The findings will also be a useful reference point to research scholars interested in this and related topics.

1. 6 Limitations of the Study

The study is limited only to one production period, thereby ignoring year to year/ seasonal variations in output caused by weather. A study of this nature might have required at least two production periods to be able to make more accurate policy recommendations. More so, the returns from the harvest were calculated based on the prevailing market price at harvest. There are usually fluctuations in the prices of cassava shortly after harvest.

Most of the information provided by the respondents was by memory recalls. These respondents lack the ability to keep farm records and accounts, although effort was made to obtain correct information by careful probing and also paying bi–weekly visits to their respective farms. There may be some errors due to aggregation, under-estimation or over-estimation by these farmers.

Also, this study is limited only to Abia State due to financial problem and time constraints. A study of this nature would require extensive coverage of the entire states of the federation in eastern part of the country where cassava is grown.

However, these limitations notwithstanding, the reliability of the findings is not in any way impaired by the above factors and the result could be taken to represent the situation in Abia State.

1. 7 Plan of the Report

The study is presented in five chapters. The first chapter, the introduction presents the background information, problem statement, objectives of the study, hypothesis that were tested, justification of the study, limitations of the study as well as the plan of the report.

The second chapter reviews the existing literature which were described under morphological description of cassava, cassava production in the world, advances in root and tuber crop production technology, the potential economic importance of cassava, farming systems adopted in cassava production, farming conditions of the small–holder farmers, efficiency of resource use by cassava farmers, economics of cassava production and marketing, conceptual and empirical framework, and finally theoretical and analytical framework.

The third chapter deals with the methodology adopted for the research work. It shows how the study areas and respondents were selected as well as how data were collected and analyzed.

The fourth chapter presents the statistical/economic analysis result of the data and discussion of the findings, while the summary, conclusion and recommendations on policy issues arising from the findings and suggestions for further research are presented in chapter five. The questionnaire used in data collection and computer print-out result of the technical and economic efficiency estimates.