ECONOMIC STUDY OF CASSAVA PRODUCTION IN ABIA STATE NIGERIA

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TABLE OF CONTENTS

 

                                                                                                                              Page

 

TITLE                                                                                                                         i

 

CERTIFICATION                                                                                                     ii

 

ABSTRACT                                                                                                               iii

 

DEDICATION                                                                                                           iv

 

ACKNOWLEDGEMENT                                                                                         v

 

TABLE OF CONTENTS                                                                                           vii

 

LIST OF TABLES                                                                                                     xi

 

LIST OF FIGURES                                                                                                   xiii

 

LIST OF APPENDICES                                                                                           xiv

 

CHAPTER ONE: INTRODUCTION                                                      1

 

Background Information of the Study                                                  1

Problem Statement                                                                                 4

Objectives of the Study                                                                         8

Research Hypothesis                                                                              9

Justification of the Study                                                                       9

Limitations of the Study                                                                                    12

Plan of the Report                                                                                  13

CHAPTER TWO: LITERATURE REVIEW –                                  15

 

Morphological Description of Cassava                                      16

Cassava Production in the World                                                     17

Advances in Root and Tuber Crop Production Technology      19

The Potential Economic Importance of Cassava                     23

Farming Systems Adopted in Cassava Production               28

Farming Conditions of the Small-Holder Farmer         30

Efficiency of Resource Use by Cassava Farmers               31

Economics of Cassava Production and Marketing                36

Conceptual and Empirical Framework                          38

2.10 Theoretical and Analytical Framework                       42

 

2.10.1 Tobit Model                                                                                         47

 

Efficiency Measures                                                                           49

Allocative Efficiency                                                              50

Economic Efficiency                                                              50

Profit Frontiers                                                                        51

Stochastic Frontier Production Function                                51

CHAPTER THREE: RESEARCH METHODOLOGY                                           54

 

Description of the Study Area                                       54

Sampling Procedure                                                               58

Data Collection                                                                59

Data Analysis                                                                59

Model Specification                                              60      

Technical Efficiency                                                                                    60

 Inefficiency Model                                                                         61

Tobit Model                                                                                     63

Normalized Profit Function                                                             66

CHAPTER FOUR: RESULTS AND DISCUSSION                              68

 

Socio-Economic Characteristics of Respondents                   68

Age of the Farmers                                                                             68

Gender Participation                                                                           70

Household Size                                                                                   71

Farming Experience                                                                            73

Level of Educational Attainment of Respondents            74

Occupational Distribution of  the Respondents              75

Farming Systems and Cassava Production in Abia state     77

Cropping System                                               77

Calendar of Farm Operations                           78

Household Farm Holdings                         81

Livestock Production in Abia state                     82

Size of Cassava Farm                                   83

Cost Implications and Returns to Cassava Enterprise 84

Analysis of Costs and Returns ( Profitability Index )    87

Estimation of Technical Efficiency              89

Determinants of Technical Efficiency     94

Elasticity of Production and Returns to Scale         97

Technical Efficiency Estimate of Cassava Farmers in Abia-State      98

Estimation of Economic Efficiency                       99

Determinants of Economic Efficiency (Profitability) for Cassava Production in Abia-State                103

Economic Efficiency Estimate of Cassava Farmers in Abia State 105

Test of  Hypothesis for Technical and Economic Efficiency of Cassava Farmers in Abia-State using Generalized Likelihood Ratio (LR)          106

Estimation of the Factors that Influence Technology Adoption Rate and Use Intensity                                                                     107

Constraints to Increased Cassava Production in the Study Area   110

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS  113

 

Summary                                                                                                         113

Conclusion                                                                        115

Recommendations                                                           117

Suggestions for Further Research                             119

REFERENCES                                                                                                          121

 

APPENDICES                                                                                                           133

 

LIST OF TABLES

 

Table:                                                                                                                                      Page

 

4.1   Frequency Distribution of Respondents According to Age               68

 

4.2   Frequency Distribution of Respondents According to Gender   70

 

4.3   Frequency Distribution of Respondents According to Household Size     72

 

4.4   Frequency Distribution of Respondents According to Farming Experience                  73

 

4.5   Frequency Distribution of Respondents According to Level of Formal Education Attained                                       74

 

4.6   Frequency Distribution of Respondents According to their Primary Occupation         76

 

4.7   Frequency Distribution of Respondents According to their Total Farm Holding          82

 

4.8   Frequency Distribution of Respondents According to their Cassava Farm Size           83

 

4.9   Results of Budgetary Analysis per Hectare of Cassava Enterprise     86

 

4.10 Maximum Likelihood Estimates of the Cobb-Douglas Stochastic Production Function   (Technical)                                         91

 

4.11 Maximum Likelihood Estimate of the Translog Stochastic Production Function (Technical)                                                             92

 

4.12 Elasticity and Returns to Scale for Cassava Production (Technical) 97

 

4.13 Frequency Distribution of Technical Efficiency Indices      98

 

4.14 Maximum Likelihood Estimate of the Stochastic Cobb-Douglas Cost function for Cassava Farmers                              100

 

4.15 Maximum Likelihood Estimate of the Translog Stochastic Cost Function for Cassava Farmers                            101

 

4.16 Frequency Distribution of Economic Efficiency Indices        105

 

4.17 Test of Hypothesis that Cassava Farmers in Abia-State are Fully Technically and Economically Efficient                                        106

 

 4.18 Tobit Model Estimates of Factors Affecting Adoption Rate and Use Intensity of Cassava Production Technologies                           107

 

4.19 Frequency Distribution of the Respondents According to the Constraints they faced in the Survey Year                                             111

 

LIST OF FIGURES

 

Figure:                                                                                                                       Page

 

    Location of Abia State in Nigeria                     56      

3.2     Map of Abia State showing all the 17 Local Government Areas   57

 

4.1     Calendar of Farm Operations for Cassava Enterprise in Abia-State 78

 

LIST OF APPENDICES

 

Appendix:                                                                                                                              Page

 

Letter to the Sampled Farmers / Respondents                         133

Questionnaire Design for the Cassava Farmers              134

Computer print-out of Output from the Program Frontier 4.1c (Technical)    148

Computer print-out of Output from the Program Frontier 4.1c (Economic)                    161

Computer print-out of Tobit Estimate with Stata 8.2 (Statistics/Data Analysis)             173

 

CHAPTER ONE

INTRODUCTION

 

BACKGROUND INFORMATION OF THE STUDY

Cassava, (Manihot esculentum crantz), belongs to the family of euphorbiaceae. It is believed that the crop originated from Brazil and was introduced to West Africa by the Portuguese traders. It exists in many cultivars which can be distinguished by size, colour, shape of the leaf, branching habit, plant height, colour of the stem, root shape, size and colour, maturity time of the root and level of hydrocyanic content (Anyanwu, 2006). Cassava is Africa’s food insurance crop with stable yield, even with low rainfall, low fertility and low inputs (FAO, 2008). Cassava is becoming an important industrial raw material and a foreign exchange earner. Cassava’s role as food security crop as well as a cash crop is receiving high attention for poverty alleviation by the developing world and partners (FAO, 2008).

 

Cassava is ranked the 6th 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 plays a major role in Nigeria’s food security and 80% of the inhabitants in the rural areas eat cassava meal at least once a day (Ezedinma, 2003). The crop is also a good source of raw materials involved in the production of confectioneries, animal feed, alcohol, adhesives, flour starch, etc. The growth of cassava as a major economic and food security crop over the last two decades has generated significant research interest at both the National and International levels. For instance, the International Institute for Tropical Agriculture (IITA), Ibadan and the National Root Crops Research Institute, (NRCRI), Umudike have developed the Tropical Manihot Selection (TMS) 30555, 30572, 30211, 50395, 60506 and Umudike (U) 41044 varieties in the early 1970’s and 1980’s. Most recently, new varieties of cassava were developed and they include, TMS 90257, 84537M, 82/00661, 30001, 81/00110, 91934, 4(2)1425, nr 41044, nr 8212, 8082, 8083, 8208, nr 83107, TMS 419, TMS 98/0581 and TMS 98/0510 (Ezulike et-al,2006). These varieties are not only high yielding, but also are resistant to pests and diseases such as Cassava Mosaic Disease, Cassava Bacteria Blight, Cassava Mealy Bug and Cassava Green Spider Mite (Ezedinma, 2003).

Cassava’s combined abilities to produce high yields under poor conditions and store its harvestable portion underground up to nine months make it a classic “food security crop. In recent years, this has proved of critical importance to many people in Africa caught up in civil conflicts and unable to cultivate the normal range of annual crops. Displaced groups of people in Mozambique during that country’s 16 years’ war often survived on abandoned cassava fields (Ezedinma, 2003). Because, it is a vegetative propagated crop, such plantings can also serve as a ready supply of planting materials during rehabilitations following conflict or drought.

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).

Although still a subject of some debate, the center of origin of cassava is generally believed to be the Southern border of the Amazon basin. Cassava was introduced in Africa in the Congo River Delta by the Portuguese in the 15th century and spread rapidly to many agro-ecologies of the continent; however, cassava is most important in farming systems of the humid forest regions where the productivity of grain crops is reduced by sunlight, foliar pests and diseases and grain storage is more difficult. Cassava has very high yield potential, making it a viable alternative to grain crops where population pressures have led to trade-off between good quality and quantity (NAQAS 2002).

Commercial cassava yields as high as 20 metric tons per hectare have been registered under experimental conditions. Nigeria is presently the largest cassava producing country in the world (FAO, 2008).

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 STUDY OF CASSAVA PRODUCTION IN ABIA STATE NIGERIA

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Cassava, (Manihot esculentum crantz), belongs to the family of euphorbiaceae. It is believed that the crop originated from Brazil and was introduced to West Africa by the Portuguese traders. It exists in many cultivars which can be distinguished by size, colour, shape of the leaf, branching habit, plant height, colour of the stem, root shape, size and colour, maturity time of the root and level of hydrocyanic content (Anyanwu, 2006). Cassava is Africa’s food insurance crop with stable yield, even with low rainfall, low fertility and low inputs (FAO, 2008). Cassava is becoming an important industrial raw material and a foreign exchange earner. Cassava’s role as food security crop as well as a cash crop is receiving high attention for poverty alleviation by the developing world and partners (FAO, 2008). Cassava is ranked the 6th 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 ex.. agronomy project topics

ECONOMIC STUDY OF CASSAVA PRODUCTION IN ABIA STATE NIGERIA