ECONOMICS OF VEGETABLE PRODUCTION IN YEWA NORTH LOCAL GOVERNMENT AREA OF OGUN STATE

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ECONOMICS OF VEGETABLE PRODUCTION IN YEWA NORTH LOCAL GOVERNMENT AREA OF OGUN STATE

ABSTRACT

This study attempts to find out the current levels of efficiency of some selected vegetable farmers in the Yewa North LGA of Ogun State. Both Technical and allocative efficiencies were analysed and compared. Further, the effects of some socio-economic variables on efficiency were estimated and compared. The productivity of land and labour in the production process as well the perception of farmers on waste water use were also analysed. Technical efficiency estimates were obtained using the Stochastic Efficiency Frontier model whiles the allocative efficiency estimates were obtained using the marginal product approach. Productivity of land and labour were estimated using partial productivity measures, the ratio of output to an individual input or input class.

Descriptive statistics were used in determine the perception of farmers on water use.

The study found that inefficiency in the vegetable production system exists. The mean technical efficiency of the pooled sample is 66.67%. Efficiency level varies across all production units ranging from 12.9% to 95.02%. There is no significant difference in technical efficiency estimates between production units at 5% level of significance.

Over 80% of vegetable producers covered by the study do not owe land permanently to undertake any meaningful production. The implication is that, investments made in developing the land is minimal or non-existent, permanent farm structures cannot be erected and the future of the vegetable industry is uncertain though it proof profitable to most farmers. The allocative efficiency indices for land and labour obtained from the study are 0.4556 and 0.4651 respectively. The implication is that both factors of production are overutilised in the production process. The effect of labour on agricultural output is therefore insignificant. This is consistent with the proposition that the use of labour in the agricultural sector is inefficient. The productivity of land, labour and water were estimated to be ¢91,525,684 per hectare, ¢72,119 per man days and ¢654,754 per cubic meter respectively. Crop water use efficiency as well as field water use efficiency was also estimated to be 1061.71kg/m3 and 203.08kg/m3 respectively.

The study revealed that majority of farmers is aware of the health implications associated with the use of untreated waste water for irrigation. . About 91.5% of farmers hold the view that the quality of water being used for irrigation is good and do not pose any threat to the lives of consumers. Water quality is of little priority concern to farmers. What matters most to them is regular supply of water all year round since most of them do not pay for it.

CHAPTER ONE

INTRODUCTION

1.1BACKGROUND

Agriculture is the main stay of most African countries. Nigeria’s economy for the instance depends largely on its agricultural production. Over the past decade the share of the domestic agriculture in real aggregate national output averaged about 53% annually, Agriculture contributes the food needs of the country. The share of the domestic output and consumption of maize, sorghum and rice for instance were 61.1, 75.8, and 47.8 percent per annum respectively during the past decade (Haizel, 1994).

It was further observed that, agriculture was by far the chief employer in Nigeria, representing 66% of the total labour force, and 80% of the working population depended directly or indirectly on agriculture for their livelihood. The agricultural sector is the largest in terms of contribution to GDP (49%), export (70%), and employment (66%), according to the 1989 figures (Asuming-Brempong, 1991). A distortion of the agricultural sector will therefore have an adverse effect on the entire economy. For instance, Killict (1978) and Bequele (1983) were of the view that the retrogression of the Nigerian economy in the 1970’s was largely attributed to the decline in the agricultural sector during that period.

Vegetables may be described as those plants, which are consumed in relatively small quantities as a side dish with the staple food. The term ‘vegetable’ can also be used to designate the tender edible shoots, leaves, fruits and roots of plants that are eaten whole or part raw or cooked as a supplement to starchy foods and meets (Williams et al, 1991). Vegetables can be distinguished from field crops by the fact that, vegetables are harvested when the plant is fresh and high in moisture while the fields crops are harvested at the mature stage for their grains seeds, roots fibre etc.In human nutrition, vegetables are an essential protective food containing vitamins and minerals. Any balanced diet should include vegetables and fruits for this reason. The proportion of vegetables required in a balanced diet per capita per meal is of the order of 45% of the total volume of the food. Vegetables supply considerable quantities of vitamins A, B, C, D, E and K. According to Agusiobo (1984) vitamin A maintains health of the respiratory and the eye tissue; vitamin B is essential for development of the nervous system; vitamin C maintains health of blood cells and tissues; vitamin D maintains health of bones and teeth; vitamin E maintains heath of the reproductive system; and vitamin K is essential for blood clotting. Iron, which is particularly plentiful in green vegetables, is part of haemoglobin which is found in the blood. The high fibre content of vegetables is essential to maintain the health of the bowels, and a diet which is low in fruit and vegetables frequently results in constipation. Tindall (1983) observed that the leaves of lettuce and cabbage combined supply 184g water; 2.9g protein, 8g carbohydrates, 1.5mg Iron, 49mg phosphorus, 55mg Ascorbic acid, 1.1mg Niacin, 0.8mg Riboflavin, and 0.2mg Thiamin nutrients per 100g of edible portion.

In Africa, three major classes of vegetables are consumed. These include those that are gathered from the wild such as baobab leaves; those indigenous vegetables which are often gathered but are also cultivated such as amaranthus; and imported vegetable species which are cultivated (Rice et al, 1987). The exotic vegetables under study (Lettuce, cabbage, and carrots) fall under the third category. These vegetables are cultivated in the country and are highly patronized by most people especially the middle and high-income classes in the areas.

About 800 million people are engaged in and peri- agriculture worldwide and contribute about 30% to the world’s food supply (UNDP, 1996). This is increasingly becoming a common expression of most areas in developing countries and is seen as an important means of attaining balanced diets and food security. In several West African countries, between 50 and 90% of the vegetable consumed are produced within or close to the city (Cofie et al, 2003).

Vegetable and vegetable products especially processed forms imported form an essential part of the food in most African countries. This involves the use of limited hard-earned foreign exchange available. Vegetables are important items in the human diet because they supply nutrients such as vitamins and minerals and the bulk of roughage the body needs and which are often lacking in most traditional staple foods.

In recent times there has been a tremendous interest and increase in vegetable crop production in West Africa. This is because of the urgent need to stop the importation of vegetables and vegetable products to help conserve foreign exchange and feed the increasing number of processing factories while exporting the rest to earn more foreign exchange (Norman, 1992). Vegetables and fruit crops add about add about 3% to the

GDP of the economy of Nigeria (PPMED, 1991). Even though the contribution to the GDP is very small, its importance cannot be overlooked because without it a diet is not balanced.

In Nigeria, backyards are mainly used to cultivate vegetable crops in the peri-areas by men while marketing of the produce is predominantly in women domain. It also has significant contributions to livelihoods and food security.

The efficiency of vegetable production is very crucial in determining the returns on investment. Quite often the introduction of new technology has been used as a standard for distinguishing between a modern system and a traditional system (Schultz, 1964), and for improving the efficiency of the production system. However in the developing world, some new technologies have been barely successful in improving productive efficiency. This has often been blamed on the lack of ability and /or willingness on the part of producers to adjust input levels because of their familiarity with traditional agricultural systems and or the presence of institutional constraints (Ghatak and Ingerset, 1983).

1.2 PROBLEM STATEMENT

In Nigeria agriculture has not received the appropriate public and institutional support despite its significant contributions to food security, poverty alleviation, women empowerment and improved human nutrition through the provision of balanced diets. Nigeria has a high potential and positive comparative advantage for vegetable production. Considerable evidence suggests that serious bottlenecks exist in the functioning of the production system in Nigeria.

Anecdotal evidence and inquiry suggest that, a number of factors are responsible for the low vegetable production at the household level. A question then arises as to how efficient farmers are using or combining the available scarce resources at their disposal to produce the maximum desired output. The food production system in Nigeria is largely unorganized and inefficient. Post-harvest problems from the farm to the retail level results in high losses, high costs of foodstuffs, and disincentive and discouragement to producers, marketers and consumers. However, population growth is fuelling the demand for a timely supply of fresh vegetables and much of this demand is satisfied through peri-production (Jansen et al, 1996). The problems are acute for dry season vegetable crops. There has however, been little research to ascertain the exact level of production efficiency and on ways to improve the efficiency of dry season vegetable production in Nigeria. In fact there seems to have been no previous attempt to determine the efficiency of vegetable production system in the country through the stochastic frontier approach. While it is obvious that the vegetable production system in Nigeria in not efficient, knowledge about the exact level of inefficiency, land, labour productivity is quite blurred. It is also not clear what the impediments, particularly the extent of their impact to efficient vegetable production are. In order to adopt measures in solving the problem of inefficiency in the vegetable production system, there is the need to obtain more specific evidence as to the magnitude of inefficiency. These are key issues central to this study and whose investigation can be useful for the formulation of policies to strengthen and improve the efficiency of vegetable production system. The research issue therefore can be stated in this manner: Are vegetable farmers in the study area operating at their maximum potential given the available scarce resources at their disposal and other constrains to increase their incomes and meet food security?

To this end, the following questions are raised:

How is dry season vegetable production carried out in Nigeria?

What are the impediments to the efficiency of dry season vegetable production system in Nigeria?

How is land and labour used in the production of vegetables in Nigeria?

Is there any significant relationship between farmer’s Socio-economic characteristics and their resource use efficiency?

What are farmers’ opinions and perceptions regarding the use of different forms of water including untreated water for irrigation?

How sustainable is dry season vegetable production in terms of existing resources and alternative options?

1.3 OBJECTIVES OF THE STUDY

The primary objective of the study is to evaluate the economics of vegetable production in the Yewa North LGA of Ogun State. Specifically, the study sought to:

Estimate the technical efficiency of vegetable farmers in the study area.

Estimate the allocative efficiency of each factor of production

Determine the productivity of land and labour in dry season vegetable production

Identify and examine the effects of selected socio-economic characteristics of farmers on their resource use efficiency.

Assess farmers’ knowledge, attitudes and perceptions regarding the use of untreated water in vegetable production.

Suggest policy options that will help promote the efficiency of vegetable production in Nigeria.

1.4 JUSTIFICATION OF THE STUDY

Vegetables are important for both domestic and export markets. Almost all households in Nigeria include vegetables in their diets. Nutritionally, vegetables are good sources of vitamins, protein minerals and fiber. For those in the producing areas, vegetable production is a major source of income for farmers.in time past the production of vegetables was largely subsistence, with a major portion of the produce consumed by the farm household. Due to increase in demand for dry season vegetables, however, producers now see vegetable production as a business and produce all year round.

An efficient production system is necessary to ensure increased production. The efficiency of the production system also important since it determines the producer’s income, consumers living costs as well as facilitates the allocation of productive resources, among alternative uses. Vegetables are high value crops, which require intensive cultural practices and the financial, and labour inputs involved are therefore greater than those required for most staple crops. From existing literature, research in this direction in Nigeria still remains out of the spotlight, even though vegetables occupy a unique position in both domestic and foreign food trade of Nigeria. This study seeks to close this gap better understanding of the vegetable production system will help eliminate the seasonally low prices and gluts that characterize producer vegetable markets the farm gate level. This notwithstanding, vegetable production has received much less sufficient scrutiny and institutional support compared with other crops like rice, maize cassava and cocoa. Creating an efficient production system requires an increase in the awareness of farmers, policy makers and all other market stakeholders concerned with the production and actual marketing of vegetables. In this regard, the study will be vital in providing important insights into the nature of and how efficient is the current production system and how it affects producer’s enthusiasm and consumer satisfaction.

In addition, factors responsible for low vegetable production at the household level will be brought to the fore and their effects of output analyzed for policy consideration.

The study will serve as a guide to the government, non-governmental organizations and other stakeholders involved in irrigated vegetable production and marketing. It will enhance decisions to ensure produce safety especially highly contaminated vegetables, and this will help improve health through reduction of water contamination due to use in production. Also, the productivity of land and water in vegetable production will be made known as well as the net benefits associated with the whole production process. Compared to other classes of food crops, there are few basic studies on vegetables. Among these few, most are oriented towards testing varieties, agronomy and physiology. This study will therefore be a prima facie in adding to the sparse knowledge that exist on vegetables, particularly efficiency of production.

1.5 HYPOTHESES OF THE STUDY

To guide the study in arriving at meaningful results, the following null hypotheses will be tested

There is no significant difference in the technical efficiency among the farmers selected

There is no significant relationship between farmers’ socio-economic characteristics and their resource use efficiency in vegetable production.

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