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Credit Use and Production Efficiency of Cocoa Farms in Ondo State, Nigeria

Author

Listed:
  • Oladapo, A.
  • Shittu, A. M.
  • Agbonlahor, M. U.
  • Fapojuwo, O. E.

Abstract

This study analyzed the pattern of access/use of credits by cocoa farmers in Ondo State and its effect on technical efficiency in cocoa production. The study was based on primary data obtained by interviewing a cross-section of 183 randomly selected cocoa farms. These were drawn in a multi-stage sampling process that covered the five dominant cocoa producing Local Government Areas (LGAs) of Ondo State Nigeria, namely: Idanre, Ondo West, Odigbo, Owo, and Akure South. The data were analyzed using descriptive and stochastic frontier methods. The study found that most (95.1%) of the cocoa farms were operated by males, with a mean age of 49.8years. Majority (66.7%) had no more than primary school education. Only 58.5% of the cocoa farmers used credit during the 2009/2010 production season. The mean amount procured during the production season was N66, 259.02. These were procured mostly (83.2%) from produce merchants. Increase in credit use was revealed to be associated with significant (p<0.05) reduction in technical inefficiency among the cocoa farms. Hence, the study recommended that government and other stakeholders should support enhanced credit delivery, most especially through the produce merchant system in the study area.

Suggested Citation

  • Oladapo, A. & Shittu, A. M. & Agbonlahor, M. U. & Fapojuwo, O. E., 2012. "Credit Use and Production Efficiency of Cocoa Farms in Ondo State, Nigeria," Nigerian Journal of Agricultural Economics, Nigerian Journal of Agricultural Economics, vol. 3(01).
    • Handle: RePEc:ags:naaenj:267882
    DOI: 10.22004/ag.econ.267882
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    References listed on IDEAS

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    2. Guy Nkamleu & Joachim Nyemeck & Jim Gockowsk, 2010. "Working Paper 104 - Technology Gap and Efficiency in Cocoa Production in West and Central Africa: Implications for Cocoa Sector Development," Working Paper Series 241, African Development Bank.
    3. Delgado, Christopher L., 1995. "Africa's changing agricultural development strategies: past and present paradigms as a guide to the future," 2020 vision discussion papers 3, International Food Policy Research Institute (IFPRI).
    4. Harold Alderman & Christina H. Paxson, 1994. "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," International Economic Association Series, in: Edmar L. Bacha (ed.), Economics in a Changing World, chapter 3, pages 48-78, Palgrave Macmillan.
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    Cited by:

    1. Matthew, M.D. & Ajibefun, I. A. & Oduntan, O., 2024. "Technical Efficiency Analysis of Small-Holder Maize Farmers in Ondo State, Nigeria," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(8), pages 81-89, August.
    2. Andras Tothmihaly, & Verina Ingram., "undated". "How can the productivity of Indonesian cocoa farms be increased?," GlobalFood Discussion Papers 258588, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.

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