Assessment of profitability and risk management in vegetable production in Ogun State, Nigeria
Department of Agricultural Economics, Adekunle Ajasin University, P.M.B 001, Akungba-Akoko, Ondo State, Nigeria.
Research Article
International Journal of Science and Technology Research Archive, 2021, 01(02), 029–035.
Article DOI: 10.53771/ijstra.2021.1.2.0045
Publication history:
Received on 07 September 2021; revised on 15 October 2021; accepted on 17 October 2021
Abstract:
The study examined the performance and risk management of vegetable production in Ogun State, Nigeria. A multistage sampling procedure was used to select 120 respondents for the study. Data were collected through a well-structured questionnaire and personal interview schedule. Descriptive statistics and inferential statistics such as Ordinary Least Square (OLS) were used for the analysis of this study. The results found out that lack of discriminating pricing system, conflict in policy making, and high cost of inputs affect the market prices and as well serve as the main production risks that were observed by the farmers in the area. The average cost incurred for the production was about ₦6,908, while the total revenue accrued was ₦41,751. The gross margin and net farm income realized per production season were ₦36,973 and ₦34,843, respectively. The value (6.0) of return on investment showed that farmers realized times six of their investment. The variables such as household size, farm size, fertilizer application and equipment were the main determinants of vegetable production in the area. Also, the main challenges faced by the farmers were the infestation of pests and diseases, inadequate funds and climate change consequences. Therefore, it is recommended that the vegetable farmers should be encouraged through technical training on innovative approach to price determination and forming of functioning market structure in the area.
Keywords:
Risk; Profitability; Production; Vegetable; Smallholders; Nigeria
Full text article in PDF:
Copyright information:
Copyright © 2021 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0