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ECONOMIC EFFECTS OF CRUDE OIL EXPLOITATION ON CASSAVA PRODUCTION IN NIGERIA

ECONOMIC EFFECTS OF CRUDE OIL EXPLOITATION ON CASSAVA PRODUCTION IN DELTA STATE

 

ABSTRACT

This study examined the economic effects of crude oil exploitation on cassava production in Delta State. Specifically, the effect of crude oil exploitation on land productivity, farm income and cassava yield was explored. The costs and returns, and hence profitability of cassava production as influenced by oil pollution, the farming systems and socio-economic characteristics of cassava farmers were critically examined. Copies of well-structured questionnaires were used to collect primary data from a sample of 204 small scale cassava farmers drawn using stratified and simple random sampling techniques from the three (3) agro-ecological zones of Delta State between October 2007 and February 2009. Data were analyzed using descriptive statistics, costs and returns analyses, net margin and regression analyses. The results revealed that total fixed cost per cassava farmer was N27, 624.49 while total variable cost per cassava farmer was N19, 108.68. Total output of cassava product (garri) before and after oil spill incidents were 48,636kg and 40,549.22kg with an average yield of 328kg and 274kg respectively per cassava farmer. A net margin of N27, 846.43 and N19, 206.43 before and after oil spills incidents per cassava farmer, indicating a 31% reduction in profit, was also revealed. Using the Ordinary Least Square (OLS) multiple regression method to estimate the effect of crude oil exploitation on the major dependent variables, the linear functions had the best fit with adjusted R2 of 0.432 and DW-statistic of 2.08 for land productivity, adjusted R2 of 0.953 and DW-statistic of 1.537 for farm income and adjusted R2 of 0.950 and DW-statistic of 2.015 for cassava yield. The results of the regression analyses and all the hypotheses tested using the paired t-test statistic at 1% and 5% probability levels, indicated that crude oil exploitation had a negative and statistically significant effect on cassava production in consonance with a prior expectations. Thus, it is recommended among other measures that government at all levels should take pragmatic steps at enacting and enforcing stringent environmental laws that will protect the oil producing farming communities as well as guaranteeing the people a better means of livelihood. 

TABLE OF CONTENT

Title Page                                                                                                                    i

Certification                                                                                                                ii

Dedication                                                                                                                  iii

Acknowledgement                                                                                                      iv

Abstract                                                                                                                      v

Table of content                                                                                                          vi

CHAPTER ONE

INTRODUCTION

1.1       Background Information                                                                                1

1.2       Problem Statement                                                                                          4

1.3       Objectives of the Study                                                                                  7

1.4       Research Hypotheses                                                                                      7

1.5       Significance of the Study                                                                               8

CHAPTER TWO

LITERATURE REVIEW

2.1       A Brief History of Petroleum Development in Nigeria                                  9

2.2       Oil Exploitation and Environmental Pollution                                               10

2.2.1    Meaning of Oil Exploitation and Pollution                                                    10

2.2.2    Sources and Types of Oil Industry Pollution                                                 12

2.3       Oil Spillage and Pollution                                                                               14

2.3.1    Causes of Oil Spillage                                                                                     15

2.3.2    Frequency and Magnitude of Oil Spills                                                          15

2.4       Effects of Oil Exploitation                                                                             18

2.4.1    Oil Exploitation and Land Availability for Agriculture                                 19

2.4.2    Oil Exploitation and Soil Pollution                                                                 21

2.4.3    Effect of Oil Exploitation on Water/Aquatic Lives                                       23

2.4.4    Oil Exploitation and Hydrocarbon Pollution of Air                                       25

2.4.5    Oil Exploitation and Rural/Urban Migration                                                  26

2.5       Oil Companies and Corporate Social Responsibility                                      27

2.6       Farming System in Cassava Production                                                         31

2.7       Farm Resource Use                                                                                         32

2.8       Valuation of the Environment: Empirical Measures                                       33

2.8.1    Non-Market Demand Approaches                                                                  34

2.8.2    Market Demand Approaches                                                                          34

2.9       Productivity Implications of Environmental Pollution                                   36

2.10     Conflicts and Resource Use                                                                           38

2.11     Theoretical Framework                                                                                   40

2.11.1  Integrated Environmental Impact Model for Oil and Chemical                   40

Spills

2.11.2  Concept of Agricultural Resource Productivity                                             41

2.12     Analytical Framework                                                                                    42

2.12.1  Multiple Regression Analysis                                                                         42

2.12.2  Gross Margin/Profit Function Analyses                                                         42

2.12.3  The Student’s “t” Test                                                                                                43

CHAPTER THREE

RESEARCH METHODOLOGY

3.1       Study Area                                                                                                      45

3.2       Sampling Procedure                                                                                        46

3.3       Data Collection                                                                                               47

3.4       Data Analyses                                                                                                 48

3.4.1    Model Specification and Estimation                                                              49

3.4.2    Gross Margin Analysis                                                                                    51

3.4.3    Hypotheses Testing                                                                                         52

CHAPTER FOUR

RESULTS AND DISCUSSION                                                     

4.1       Farming Systems of Cassava Farmers                                                            53

4.2       Socio-Economic Characteristics of Cassava Farmers                                     54

4.3       Profitability Analysis of Cassava Farming                                                     56

4.3.1    Cost Analysis in Cassava Farming                                                                  56

4.3.2    Returns in Cassava Production                                                                       59

4.3.3    Net Margin Analysis                                                                                       61

4.4       Corporate Social Responsibility of Oil Companies and Cassava

Farming Activities                                                                                          63

4.5       Effects of Crude Oil Exploitation on LandProductivity and Farm

Income of Cassava Farmers                                                                            66

4.6       Effect of Oil Pollution on Cassava Farm Income                                           69

4.7       Effect of Crude Oil Pollution on Cassava Yield                                            71

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary of Findings                                                                                                 74

5.2       Conclusion                                                                                                      76

5.3       Recommendations                                                                                          76

5.4       Contribution of Knowledge                                                                           78

5.5       Suggestion for Further Study                                                                         78

References                                                                                                      79

Appendix                                                                                                        94

LIST OF TABLES

                                                                                                            PAGE

1.1       Nigeria Net Oil Revenue (N million)                                                              3

2.1       Oil spills in Nigeria (1976-1996)                                                                     16

3.1       Communities Surveyed and Sample Sizes                                                      47

4.1       Farming Systems of Cassava Farmers                                                            53

4.2       Distribution of Socio-Economic Characteristics of Cassava

Farmers                                                                                                           54

4.3       Average Fixed and Variable Costs in Cassava Production per hectare          57

4.4       Total and Average Yield of Garri per Cassava Farmer before and

after Oil Spill Incidents                                                                                  59

4.5       Test for Difference in Yield of Garri before and after Oil Spill

Incidents                                                                                                         60

4.6.      Cost and Returns in Cassava (Garri) Production per Cassava Farmer           61

4.7       Depreciation of Fixed Cost Items                                                                  62

4.8       Test for Difference in Net Margin (Profit) per Cassava Farmer

before and after Oil Spill Incidents.                                                               63

4.9       CSR: Responses of Male Cassava Farmers.                                                   64

4.10     CSR: Reponses of Female Cassava Farmers.                                                 64

4.11     Farmers’ Response as to whether CSR of oil companies has

improved their farming activities                                                                    65

4.12     Regression Results on Factors Affecting Land Productivity in

Delta State                                                                                                      67

4.13     Factors Affecting Cassava Farm Income in Delta State                                69

4.14     Factors Affecting Cassava Yield in Delta State                                             71

 

CHAPTER ONE

INTRODUCTION

1.1       Background Information

One of the most discussed issues in Nigeria in recent time is that of sustainable development. Sustainable development, according to the Bruntland commission, is development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs (World Commission, 1987).

Agriculture plays fundamental role in the development of any economy. Thus, according to Uwakahet al, (1991), agriculture is the bedrock of the economic development of most developing nations. Edordu, (1986) put it succinctly as follows: “experience has shown that no modern developed country around the world achieved rapid industrialization without having previously or simultaneously attained a marked increase in agricultural production”. The contribution of agriculture to development, most especially in the developing countries includes provision of food supplies, employment, capital formation, release of labour for industrial development and fibre needs of industries (Okorie and Eboh, 1999; Njoku, 2000; FAMRD, 2002). This implies that agriculture is very crucial to the social and economic development of Nigeria.

Agriculture is a vital business enterprise having various components. One of these components that is productive in nature is crop production-a component that dominates largely the Nigerian agricultural scene. It is noteworthy that agriculture in Nigeria is dominated by small scale farmers who are responsible for about 90 percent of the total production (Olatunbode, 1990). The small holder farmers usually have farm sizes ranging between 1-4 hectares and cultivate mainly staple food crops (Obinne and Mundi, 1999).

In recognition of the importance of crop production in the Nigerian economy, successive governments in Nigeria have undertaken various policy measures to revitalize the agricultural sector. However, none of these measures has yielded adequate fruitful result. This is an evidence of the fact that the bulk of Nigeria’s foreign currency earning presently comes from crude oil and gas. NNPC, (2004) reports that the national budget depends heavily on the revenue expectation from oil and gas and this will remain for a while. Thus, the dominant role of crude oil has pushed agriculture, the traditional mainstay of the economy from the early fifties and sixties, to the background.

According to Onwudiwe, (2003), there are eighteen oil companies operating currently in Nigeria. These companies operate over 159 oil fields and produce from over 1,481 oil wells. Of this figure, the Shell Petroleum Development Company (SPDC), controls about half (83 oil fields and 748 oil wells). All of these are almost exclusively in the Niger Delta region.

Oil production in Nigeria has come a long way from the early days of the 1950s. Today, of Africa’s proven crude oil reserves of some 66 billion barrels, Nigeria accounts for 25 billion barrels, more than 35 percent of the total. Therefore, the significance of oil in Nigeria’s political economy has grown considerably. From accounting for one percent of Nigeria’s export earning in 1958, it now accounts for up to 98 percent of export earnings; and from accounting for some 70 percent of total government revenue in 1970, it now accounts for between 80 and 90 percent. This phenomenal rise is attributable to crude oil output, which grew from 1.88 million barrels in 1958 to 822.75 million in 1974 and to 547.08 million in 1985 (NNPC, 1985). This figure rose significantly to 751.8 million barrels as at 1996 (CBN, 1996).

According to CBN, (2000) Nigeria’s crude oil production, including condensates, rose by 11.2 percent over the level in the preceding year (1999) to 2.18 million barrels per day (mbd). Consequently, net oil revenue rose sharply from N204, 848m in 1996 to N857, 582m in 2000 as shown in the following table.

Table 1.1: Nigeria Net Oil Revenue (Nmillion)

Fiscal Year Oil Revenue (Net)

(N million)

1996 204,848.0
1997 218,727.3
1998 166,333.1
1999 1/ 336, 131.6
2000 2/ 857,582.2

Sources: Federal Ministry of Finance Central Bank of Nigeria. In CBN Annual and Statement of Accounts for the year ended 31st December, 2000 (P. 102).

Extracted from Federation and Account Operation

1/Revised

2/Provisional

There is therefore, no doubt that the Nigerian oil industry has affected the country in a variety of ways. On one hand, it has fashioned a remarkable economic landscape for the country. However, on the negative side, petroleum exploration and production also have adverse effects on fishing and farming which are the traditional means of livelihood of the people of the oil producing communities in the Niger Delta region of Nigeria, specifically Delta State.

Eteng, (1997) asserts that “oil exploration and exploitation had over the last four decades impacted disastrously on the socio-physical environment of the Niger-Delta Oil-bearing communities, massively threatening the subsistent peasant economy and the environment and hence the entire livelihood and basic survival of the people”.

In a similar vein, Gbadegesin, (1997) averred that “oil exploration and production in South Eastern Nigeria, has adversely affected peasant agriculture, the basis of sustenance of millions of rural inhabitants through a complex web of interaction of several negative environmental factors. Such factors include contamination of streams and rivers, the problem of oil spill, forest destruction and bio-diversity loss, the environmental effect of gas flaring and effluent discharge and disposal”. Thus, if the oil industry is considered in view of its enormous contribution to foreign exchange earnings, it has achieved a remarkable success. On the other scale, when considered in respect of its negative impact on the socio-economic life and the environment of the immediate oil bearing local communities and their inhabitants, it has left a balance sheet of ecological and socio-physical disaster. This rightly provides a framework to carry out an economic assessment of the effects of crude oil exploitation on small scale cassava production in Delta State of Nigeria.

1.2       Problem Statement

Before the discovery of oil in Nigeria, and even up to the time of Nigeria’s political independence in 1960, agriculture was undisputably the mainstay of the country’s economy, providing employment for the bulk of the population and bearing the physical brunt of economic development. As a share of GDP, agricultural output (crops, livestock, forestry and fishery) accounted for 41.5 percent, compared with 41.0 percent in 1999 (CBN, 2000). This corroborated the report of Erinle and Mijindadi (1992) that agriculture is the most important enterprise in the country employing over 60% of the total labour force and providing over 40% of the National Gross Domestic Product (GDP).

Toluyemi, (1990) asserts that the small scale farmers constitute the bulk (about 60%) of the Nigerian farmers. These peasants, operating at low level of resource inputs are constrained by a number of factors. These factors, as summarized by FMAWR and RD, (1994), are technical, socio-economic, organizational and institutional problems. In recent years, however, the oil boom has compounded the problem of agriculture.

According to Onyige, (1996), the euphoria that followed the large revenues from oil, among other things, not only led to the neglect of other sectors of the economy, particularly agriculture, but also to a neglect of the effects of oil exploitation on the areas in which it is taking place. One other way in which oil exploration has affected agriculture is through pollution. Uchegbu, (2002), citing Imevbore, (1973), maintains that the various activities in all the phases of the oil industry are sources of emissions and products whose entry into the natural environment produces effects of pollution greater than the amount that can be controlled by natural self purification capacity of the ecosystem. Unfortunately, a review of nearly three decades of development planning in the country (1962-1985) shows that government planning did not take a serious view of these externalities nor has planning been sufficient to prevent poor distribution of wealth, uneven resource allocation and undesirable exploitation patterns (Onyige, 1996).

Oil production in Nigeria, has had severe environmental and human consequences for the indigenous people who inhabit the areas surrounding oil extraction. Of course, it is precisely the peasants in the oil-producing areas, especially farmers, who are the main victims of industrial pollution. Degradation of the environment through pollution has had serious consequences for peasant economy and society. Obioma, (1985), argues that the problem of the oil communities is not just that they do not gain from the oil operations but that they suffer numerous and severe damages to their economic resources.

The above is justified in the minutes of meeting between Rivers State Government, the Egbema liaison committee and Nigerian Agip Oil Company Limited (NAOC), 30 December, 1981 which contain the devastating effects of oil exploitation on the people of Egbema particularly farmers and fishermen. A similar point was also made by the Egbema Youth Association in a reminder to NAOC about the repercussions of its industrial activities in their farmlands, claims which equally apply to oil producing communities in Delta State.

Corroborating all the assertions above, Mba, (2001) maintains that the people of the rural Niger Delta communities live with a deep sense of loss and deprivation. The communities are found to be suffering immense human, economic, ecological or environmental and agricultural damages on the account of the operations of the oil exploration companies there, notably the Shell Petroleum Development Company (SPDC). While reporting on the damaging effects of gas flaring, an integral part of oil exploration and exploitation on the communities of the Niger Delta where oil prospecting takes place, Adegbulugbe, (1994), asserts that cumulative gas flaring between 1965 and 1987 amounted to 3.15 x 1011m3. This represents a significant amount of pollutants discharge into the atmosphere with consequent negative impacts on the growth of vegetation and increased localized haze in the affected areas (Salau, 1987). Ibe, (1998) in his view, reports that oil spillages from SPDC had consequently led to the pollution of water and destruction of both aquatic life and agricultural land in their host communities.

Thus far, the pollution of farmlands, water bodies, top soil depletion, deforestation and other ecological and economic problems by oil exploration and exploitation activities had culminated in the small scale crop producers experiencing diminishing returns to their efforts year in year out. Emphasis has always been placed on increased crude oil exploration without giving enough thought to how the environment and agricultural productivity are affected and ways of controlling oil spillage and other forms of pollution by the exploring companies concerned. It should be noted that in Nigeria, as in other developing countries, a key policy objective targeted at achieving sustainable human development is to establish energy development paths that are economically efficient and environmentally sustainable. Though theoretical explanations abound on the impacts of oil exploration on the environment, there is a dearth of empirical studies on how it economically affects the activities of small scale crop producers (especially cassava) in Delta State. Thus, there is the need to undertake a detailed economic study of the effects of oil exploitation and other related activities on cassava production by small-scale farmers in Delta State with a view to improving the living standard of the people.

1.3       Objectives of the Study

The broad objective of this study is to assess the economic effects of crude oil exploitation on cassava production in Delta State.

The specific objectives are to:

  1. describe the farming systems and examine the socio-economic characteristics of cassava farmers in Delta State.
  2. assess the effects of crude oil exploitation on land productivity and farm income of cassava farmers in the study area.

iii.        ascertain the effects of crude oil pollution on cassava yield in the study area.

  1. determine the costs and returns and hence, profitability of cassava farming as influenced by oil exploitation
  2. describe the extent to which corporate social responsibility of oil companies has improved the activities of cassava farmers in the study area.
  3. make policy recommendation based on research findings.

1.4       Research Hypotheses

The following hypotheses were tested in the study.

  1. Oil pollution has no significant effect on land productivity of cassava farmers.
  2. Oil pollution has no significant effects on cassava yield in Delta State.

iii.        Oil exploitation has no significant effect on farm income of cassava farmers.

  1. Socio-economic characteristics of cassava farmers have no significant effect on cassava production.

1.5       Significance of the Study

Agriculture forms a major economic activity in Nigeria particularly in the Niger Delta region. According to CBN (2010) the overall contribution of agriculture to real GDP was N316, 728.70 million. Of this total, crop production accounted for about 89%.

Thus, in attempting to build an environmentally sustainable economic and social order, we have to be virtually concerned about safe-guarding the life-support systems of the oil-bearing communities of which crop farming is one of such life support systems. It is therefore, essential to create a broad awareness of the actual or potential hazards threatening the subsistent peasant economy and the environment and hence the entire livelihood and basic survival of the people. As mentioned earlier, no much emphasis has been placed on how oil exploitation and its related activities have impacted economically or otherwise on small scale crop farmers in Delta State. The researchers, therefore, believes that this study will enable the oil companies appreciate the extent of damage done through their activities on the agricultural resources of the area and to take appropriate step(s) to remedy such situations. The study will also give an insight into the effects of oil exploitation on the socio-economic lives of small-scale crop farmers in Delta State. It is also hoped that the research findings will draw the attention of the multi-national oil companies and every other stakeholder in the oil industry to be aware of the hardship being suffered by farmer’s vis-à-vis oil exploitation so that policies could be aimed at alleviating the suffering of these people

ECONOMIC ASSESSMENT OF THE NATIONAL FADAMA DEVELOPMENT PROGRAMME

ABSTRACT

 

Fadama farming has contributed significantly to Nigeria’s agriculture in particular and the country in general, but the contributions have remained largely unmeasured.  As a result, this study examined the influence of the National Fadama Development Project on Fadama farmers in Kano State. Primary and secondary data were sought.  A set of questionnaires was developed and information was collected from 108 respondents who were randomly selected from the three agricultural zones in the study area. Multiple regression analysis and simple statistical tools, such as, means, frequency, range and percentages were used to realize the objectives of the study.  Analysis of the data revealed that fadama farming was a profitable venture among the farmers studied.  A majority of respondents owned and purchased their farm land and the houses they lived in.  A large percentage also owned radio, television, bicycle and irrigation pump. Water from tube-wells and wash bores were used for irrigation and drinking. The customary land system was practiced in the study area.  About 46% of the respondents inherited their farm land while 26.9% purchased theirs. Majority of respondents practiced mixed cropping to ensure maximum plot utilization. There was efficient use of facilities provided by the loan package.  Inputs such as pumps, fertilizers, pesticides and insecticides were used by farmers.  Respondents also admitted adequate visit to farms by extension agents. There was a significant difference between the average income of the two groups (beneficiaries and non-beneficiaries) at a probability level of 95%. Some constraints, such as, high cost of farm inputs, chronic shortage of petrol and petroleum products, seasonal glut of some perishable agricultural commodities, poor storage facilities, poor access roads to Fadama areas and difficulties in getting registered as  members of Fadama Users Association (FUA), were experienced by respondents. Recommendations included subsidization of prices of fertilizers and other farm inputs, frequent conduct of soil survey to determine level of salinity, creation of more micro credit facilities to enhance productivity and provision of infrastructural facilities.

CHAPTER ONE

INTRODUCTION

  • Background Information

Agricultural production in Nigeria remains essentially traditional with cultivation largely undertaken at individual level using local implements (Abdullahi, 1983). This traditional method and the subsistence nature of agricultural production help in perpetuating the vicious cycle of poverty and restricting the farmer’s ability to embrace modern technology (Bala, 1992).  The food security situation in Nigeria has been deteriorating over the past 15 to 20 years.  Per capital food production has declined more than 15% in the past 20 years (UN, 1992).

As a way of boosting agricultural production, government introduced modern irrigation scheme in the country.  Although the concept of irrigation farming has been practiced in Nigeria for several decades, the introduction of modern irrigation is a government initiative.

Modern irrigation in Nigeria can be traced back to the pioneering efforts of Colonel Collins, a British Colonial officer who, after a survey of the irrigation potentials of Northern Nigeria in the 1900s, developed 243 hectares of land for irrigation.  This was followed in 1949 by the establishment of an irrigation division in the Ministry of Agriculture of the Northern Region with the main objective of initiating small-scale irrigation schemes (Dawakintofa, 1989).

Another major step in irrigation development in Nigeria was the Food and Agricultural Organizations (FAO) report of 1965, which stressed the need for the Federal Government’s active involvement in planned water resources and irrigation development for the country.  Consequent upon the Food and Agricultural Organization’s report, the Chad and the Sokoto Rima-Basin Development Authority was established by Decree numbers 32 and 33 of 14th August, 1973.Kano State Government,(1995). In 1976, the River Basin Development Authorities were expanded to eleven in number by Decree number 36 of 25th June and Decree Number 37 of 3rd August, 1976 (Dawakintofa, 1989).  These Authorities were charged with the responsibilities of constructing and maintaining dams, polders, wells, boreholes and drainage systems for irrigation purposes.  There was also the Bakolori Irrigation Scheme, which was established in consonant with the laid down guidelines for irrigation development (KNARDA Baseline Survey, 1993).

These schemes attracted generous funding from government.  Inspite of the enormous sum of money (2.25 billion) and the facilities provided, the schemes had limited success (Samorock, 1983). For instance, the total irrigated area proposed to be accomplished by the River Basin Development Authorities for the Nation was 1,999,139 hectares (Nwa and Martins, 1982).  But as at 1980, only 25,754 hectares had been developed.  Only about 77,369 hectares were expected to be developed by 1991 (Abdullahi et al, 1989).  This is about 4% of the total land meant for development.  Salihu (1986) and Dawakintofa (1989) attributed the limited success of the early irrigation schemes to the fact that the plans were developed without much consideration of economic and social problems.

Fadama” is an Hausa word meaning low-lying swamp area consisting of fluvial deposit and containing extensive exploitable aquifers” (Gandi and Radashekara, 1989).  Fadama also refers to a seasonally flooded area used for farming during the dry season.  It is defined as an alluvial, low land formed by erosion and depositional action of the rivers and streams (Qureshi, 1989).  The extent and subsurface formation of the Fadama land depend on the terrain over which the rivers are formed and flowed.

They can also be referred to as flood prone, low lying, slow drainage areas that generally possess a finer texture and less acid soils.  Fadama lands are regarded as very rich agricultural areas.  They encompass land and water resources that could easily be developed for irrigation agriculture (World Bank, 1992).  In Nigeria, this type of rich irrigable land can be found along the flood plains of the Niger, Sokoto-Rima, Benue, Nassarawa, Yobe and Hedejamaari river systems.  Fadama land covers about 4.9 million hectares in the country (BSADP, 1994).  It is therefore necessary to harness it in order to accelerate agricultural production.

Inadequate and uneven distribution of rainfall in the arid and semi arid North, prompted some state governments to initiate Fadama through small-scale irrigation system (Abdullahi and Phillip, 1989).  The enclave states, which pioneered the Programme, were Kano, Bauchi, Jigawa, Gombe, Sokoto, Zamfara and Kebbi.

The staff appraisal report (SAR) estimated that traditional irrigation was practiced in over 60,000 hectares of Fadama land of which 13,000 were cultivated for dry season vegetable production while the whole of it could be used for summer rice production under semi-controlled flooding, primarily in the Hedejia valley area (APMEU, 1991).

This Fadama development component, covering 27,400 hectares in Kano State, comprised; (i) Fadama intensification – bonding of run-off and using residual moisture to produce a second crop planted in September/ October on 14,700 hectares;   (ii) the use of wells (usually not exceeding 7m deep) and making 1,500, 3″ diesel pumps and 4,600 hand pumps available through the Kano Agricultural Supply Company (KASCO) to replace Shadoof and bring an incremental 6,800 hectares into production; and  (iii) improved flood irrigation of rice by bonding an estimated 5,900 hectares to allow two crops a year.

Incremental crop production achieved by these activities  amounted to 29 million annually up to the end of project life cycle of five years.  This technique was found to be cheaper than the large-scale system and more efficient than the traditional method of irrigation.  While small-scale irrigation costs US1, 000 ( 80,000) per hectare, large-scale irrigation scheme cost US10, 000 (800,000) per hectare all at the 1990 prices (World Bank 1992).   The small-scale irrigation scheme took off in Kano State in 1982 with loan effectiveness. The irrigation component started-off primarily with the introduction of extension services and the sale of pumps.

1.2     National Fadama Development Project

The Agricultural Development Projects (ADPs) has been identified as the most successful strategy towards agricultural development in Nigeria (World Bank, 1992).  The system, which consists of several sub-programmes and its related components, is specifically designed to address the small holder sub-sector in its agricultural development efforts.  One of such sub-programmes/components is Fadama development (KNARDA Baseline Survey, 1997).  This small-scale, low cost, farmer managed irrigation Fadama programme had been adjudged successful initiation of the agricultural development project system (World Bank, 1992).

Evidence showed that, there existed great potentials for Fadama development of which only about 7% was then being exploited (SAR, 1990 NFDP).  It was in realization of this that the Federal Government of Nigeria (FGN) in 1991, requested a World Bank loan of US67.5 (N536.00) million to finance a project for developing Fadama lands (flood plains) by introducing small-scale irrigation.  The loan was to assist Fadama Development projects in states meeting pre-determined eligibility criteria.  The project is currently being implemented in Kano, Bauchi, Jigawa, Kebbi and Sokoto States which have pioneered Fadama development.  These facilities were expected to assist beneficiary states consolidate pilot Fadama Development Projects by;

(i)         financing the provision of shallow tube wells in Fadama land for small-scale irrigation;

(ii)        constructing about 7,000 wash bore, tube wells in Kano State through private contractors;

(iii)       constructing Fadama Infrastructure based on the experiences of on-going Agricultural Development  Projects (ADPs), Fadama roads and storage facilities;

(iv)       formation of  institutional  development.  Fadama farmers would be organised into Fadama Users Associations (FUA).  The union would serve as a single contact points for services to farmers, and

(v)       providing planning assistance free-of-charge to interested farmers.

In order to ensure fair allocation of resources to eligible states, certain criteria were employed as measurement indicators to evaluate the performance of the Agricultural Development Projects (NFDP Baseline Survey, 1996). The proposed Fadama land to be covered under the National Fadama Development project in Kano State was 27,400 ha; out of a total of 163,000 ha of the main Fadama and their flood plains. The project is expected to benefit 430,000 farm families, cultivating an average of 2.8 hectares. The project intervention is expected to raise the assured project preliminary feasibility study yield of 2.0 for wheat to 2.5 t/ha and vegetables from 9.0 t/ha to 13t/ha, while rice, would increase from 2.5 t/ha to 3.5 t/ha (World Bank, 1992).   However, to assess the performance of the Fadama loan package, it is pertinent to make a cross comparison between the non-beneficiaries of Fadama loan with their counterpart beneficiaries.

 

1.3       Problem Statement

Successive Nigerian governments have initiated various agricultural and food production strategies to execute a wide range of agricultural programmes through irrigation agriculture but have failed to achieve their expectations to boost agricultural production (Salihu, 1986i Gana, 1986).  Food output has been so  low that there is a widening gap between crop output and quantity needed (RMSMN, 1993).

In order to realise the dream of increased food production, the Federal Government identified small-scale, low-cost managed irrigation pilot scheme by the Agricultural Development Projects (ADPs) as the most efficient technique that can accelerate the pace of food production in the country.  To enhance the involvement of more farmers in the project, the Federal Government sought the assistance of the World Bank loan for a National Fadama Development Project.

Fadama loan package attracted both small and large-scale farmers in the loan disbursement process through registration with Fadama Users Association (FUA).  The programme operated on the basis of full-cost recovery with built in rebates which serve as incentive for prompt repayment.  Prevailing commercial bank lending rate was used.  The pilot scheme ended by September, 1998 and the scheme was extrapolated to the rest of the states in Nigeria.

 

1.4       Objectives of the Study

The broad objective of this study is to assess the influence of the National Fadama Development Project on Fadama farmers in Kano State.

The specific objectives are to;

  • Ascertain the extent of use of facilities provided through the loan package by beneficiaries;
  • compare the crop output, farm income, farm size and labour use of beneficiaries and non-beneficiaries;
  • identify the major problems of Fadama farming in the study area; and
  • make policy recommendations for improving Fadama farming, based on findings.

 

1.5       Research Hypotheses

In line with the research objectives, the following null hypotheses were tested;

There is no significant difference between;

  • the farm output, of loan beneficiaries and non-beneficiaries;
  • the farm size of beneficiaries and non-beneficiaries and
  • the farm income of beneficiaries and non-beneficiaries

1.6       Justification for the Study

The findings of this study will serve as a motivating force for non-beneficiaries of National Fadama Development Project loan to embrace the loan package. The outcome of the study will also enable both Fadama farmers and the loan beneficiaries (Fadama users association) to adjust positively to their farming activities to enhance optimal level of output.

A comparative study of beneficiaries and non-beneficiaries of the loan in Kano State will provide the opportunity for assessing the influence of the National Fadama Development Project (NFDP) loan scheme on Fadama Development. Information revealed by the study, with respect to loan patronage, increased Fadama cultivation and farm output will motivate participants and credit agencies resulting in a good base for the take-off of the second phase of the projects.

It is therefore anticipated that the findings of this investigation will serve as an information source for research scholars, policy makers and operator of Agricultural Sector for effective policy formulation and good management.

ECONOMIC ANALYSIS OF RICE MARKETING MARGIN IN ADANI UZO-UWANI LOCAL GOVERNMENT AREA OF ENUGU STATE, NIGERIA

 ABSTRACT

 

This study was carried out to analyses the marketing margin for rice among participants in  the marketing of rice in Adani Uzo-Uwani Local Government Area. A purposive sampling technique was used in the selection of respondents. The study identified and described the marketing of rice in the study area, the participants and their activities in the marketing of rice. It determined the cost of perfuming the physical functions of transportation, storage, processing and margin accruable to the participants (producers,   wholesales and retailers). Problems of agricultural marketing were also identified to include production conditions, transportation and communication, handling packaging and processing, storage and warehousing institutional support input distribution; urban food supply system and price  stabilization. This work sets out elements which make up an efficient marketing system to include functions and services, agencies and channels, the enterprises of which they are composed and the institutional  framework within which they operate. The analytical tools used in this work included descriptive statistics such as frequency, percentage, mean, rage and market margin analysis. From he results it was affirmed that 28% of the producers have no formal education and 5% have HND/B.Sc. certificates. The age renege of producer and retailer is between 40 and 50 years and household size of between 6 and 10. Farming and marketing experiences of the respondents ranged from 40-50 years and they were mostly married. It was also found out that the marketing margin for 50kg  bag of milled rice sold in the study area for the village merchant is N26, for the retailer N29, for the wholesaler N10, and for the producer N 68. The study identify source of supply (large numers of very small farms, each operating independently), Igrge number of  middlemen, transportation, inadequate storage  and warehousing facilities, forced sales, grading and standardization, adulteration and instability of prices as problems to the participants in the study area. Among the reduction of high cost of processing by provision of machinery and machinery spare parts, to increase farmers yield, maintenance of rural feeder roads using the mill for other purposes like cassava processing and the need proper grading and standardization

ECONOMIC ANALYSIS OF ARTISAN FISHING ENTERPRISES IN BENUE STATE, NIGERIA

CHAPTER ONE
INTRODUCTION
  • Background Information

One of the major roles played by fisheries in the economy of Nigeria is its contribution to the dietary needs of the populace. Increased food production, both in quantity and quality is necessary to build a healthy nation. Animal protein is essential for proper growth, repair and maintenance of body organs and tissues (Moses, 1983). Proteins obtained from livestock such as cattle, pigs, sheep, goats and poultry in tropical regions are generally very expensive. Fish protein contains the essential amino acids such as methionine, lysine, tryptophan which are absent in proteins of plant origin (Lawal, 2002). Fish oil contains unsaturated fatty acids, which are low in cholesterol, and thus a regular intake of fish oil harbours lower risk of heart attack, which might result from deposition of cholesterol in blood vessels. According to Madu (2000), fish is eaten all over the world and no religious or cultural restrictions are known to forbid its consumption.

Lawal (2002) reported that about 35 percent of the world’s fish catch is used for the production of fishmeal and oil. The greatest amount of the products is fed to poultry. Fishmeal product has high protein content (60-75%), making it a valued ingredient usually commanding a higher price than any other protein concentrate except milk powder. Fish oil is a valuable raw material for hydrogenation and is used in direct human consumption as margarine. Most of the world’s fishmeal is made from pelagic species, rich in oil. Nigeria generates about 10 million US dollars annually in foreign exchange through the exportation of shrimps (Mabawonku, 1986).  Apart from the dietary use, production of livestock feeds and earnings of foreign exchange, fisheries offer direct and indirect employment opportunities to the people of the country (Asaku, 1997). Direct employment from fisheries involves those who are directly engaged in fish production, processing and marketing. Fisheries offer indirect employment to people who are engaged in the production of fishing inputs and fishing vessels, floats, sinkers, nets, lanterns, matchets and fish finders. Others indirectly employed in fishery industry include fish canners, owners of restaurants and manufacturers of livestock feeds.

The demand for fish has been rising rapidly in Nigeria as a result of increase in population, per capita income and price of alternative sources of animal protein. However the domestic supply of fish does not satisfy the demand. Attempts to meet the demand have seen the country resorting to importation of fish.  The projected demand for fish in Nigeria in the year 2000 was 2,542 million tones. This figure rose to about 2854.6 million tones, an increase of about 12.3 percent in 2003 (FAO, 2004). This figure when compared with total fish supply will clearly show that there is fish demand-supply deficit in the country.

Many countries both import and export fish products. Trade tends to flow not only from less developed to more developed countries, but also between developed countries (FAO, 2004). In terms of export value, the total world trade of fish and fish products reached US $ 58.2 billion in 2002 (FAO, 2004). In terms of quantity, developed countries imported over 32 million tones in 2002, of which 68 percent was for human consumption (FAO, 2004). Imports for developed countries stood at 19 million tonnes, of which 47 percent consisted of fish for food.

The total quantity of international trade of fishery commodity by Nigeria as released by FAO reports (2000 and 2004) for the years 1997, 1998, 1999, 2000 and 2994 showed that imports of fishery products for the years amounted to 412,498, 442,331, 464,519, 646,557 and 814,461 tonnes respectively. This is in comparism with the export figure of 3,232, 656, 4,233, 249 and 12,016 tonnes for year 1997, 1998, 1999, 2000 and 2004 respectively (Table 1.1).

Table 1.1: Total quantity of annual trade of fishery commodity by

Nigeria (Metric tonnes)

Year Imports Exports
1997 412,498 3,232
1998 442,331 656
1999 464,519 4,233
2000 646,557 249
2004 814,461 12,016

Source: FAO Reports 2000 and 2004

 

In Nigeria, the artisanal fishery is made up of coastal canoe fishery, brackish water canoe fishery, riverine and lake canoe fishery and the flood pond fishery (Asaku, 1997). Mabawonku (1986) reported that artisanal fishery sector accounts for about 87 per cent of the total fish production in Nigeria. In Benue State, Asaku (1997) reported that the bulk of the fish supply come from fresh water systems. This bulk amounts to 98 percent while the remaining 2 percent is from culture fishery and imported frozen fish.

 

  • Problem Statement

The fisheries sector, despite being an important source of livelihood for the majority of riverine households, has been plagued by a number of problems. These include, poor and inefficient fishing gears, lack of capital, poor fisheries management, poor handling facilities, poor infrastructure and high post harvest losses (Semesi et’al, 1998). Together with lack of alternative employment opportunities and increased number of fishing households, the above mentioned problems have been the main cause of decrease in fish catch as well as degradation of fish stock and over exploitation. As a result most households will continue to be trapped in poverty. The main challenge for the growth of artisanal fisheries is how to improve production performance while at the same time, ensuring sustainable level of fisheries resources. Various initiatives have been undertaken by international organizations, governmental and non-governmental organizations in order to ensure that fishing activities bring about economic, social and nutritional benefits (Allison and Ellis, 2001). However, these initiatives did not consider the importance of artisanal households socio-economic characteristics and behaviour in their decision making process.

Productivity in artisanal fishing depends on the fishing households socio-economic characteristics, technology, assets endowments (physical, financial, human and social), and available infrastructure (Gaertner et al, 1999; Salas, 2000). Although, the literature suggests a number of explanations to this phenomenon, there have been scanty empirical studies to validate these in the study area. Empirical evidence is very important in order to identify the factors that limit the productivity of artisanal fishing households so that policies can be designed to enhance profitability of the enterprise based on recent and reliable information.       Therefore, measurement and analysis of artisanal fishing households performance become important.

This work therefore, measures the performance of artisanal fishing households in fishing villages of Guma LGA. The work applies a production function model to determine the effect of socio-economic characteristics and fishing inputs on output of artisanal fishers

 

  • Objectives of the Study

The broad objective of the study is economic analysis of artisanal fishing enterprise in Guma Local Government Area of Benue State.

The specific objectives are to:

  1. describe the socio economic characteristics of artisanal fishers in the study area;
  2. identify and describe major artisanal fishing practices in the study area;
  • determine the profitability of artisanal fishing in the study area;
  1. determine the effect of socio-economic variables and fishing inputs on output of artisanal fishing in the study area;
  2. identify the constraints to the full exploitation of the potentials associated with the natural fishing sites in the study area;
  3. make recommendations on the ways to improve and promote artisanal fishing in the study area.

 

  • Research Hypotheses

Based on the research objectives, the following hypothesis will be tested:

1)        HO: Socio-economic variables have no significant effect on the       output of fishermen.

H1: Socio economic variables have significant effect on the output of fishermen.

2)        HO: Fishing inputs have no significant effect on the output of           artisanal fishers.

                        H1: Fishing inputs have significant effect on the output of artisanal             fishers.

 

  • Justification of the Study

To conserve the country’s foreign exchange earnings, there is need to vastly reduce the share of food imports especially those that can be produced locally. Supply expansion programmes on fishery can be carried out in consideration of the abundant fishery resources all over the country. The large amount of foreign exchange hitherto spent yearly on importation of fish will be invested in other equally viable and competing demands of the nation. A transformed rural fishing programme will not only help improve the dwindling internal revenue generation of the third tier of government but will also improve the socio economic status of fishermen in the fishing communities of the study area and eradicate poverty.

Very few formal publications have been identified that specifically focus on economic and financial performance of artisanal fishing enterprises in Benue State. Several studies by Lawal (2002), Asaku (1997) and Imande (1994) concentrated on Aquaculture leaving out the least expensive but naturally endowed artisanal fishery sub sector, which is more popular among the rural people.

This study therefore seeks to fill this knowledge gap by identifying     major factors retarding the productivity of existing water resources and how these resources can be improved or maintained for optimum productivity in the study area. This study also intends to identify ways of improving the level of fish production in the study area and Nigeria in general so as to reduce the supply-demand deficit in the state. This study will also provide information, which will guide policy makers in formulating policies that will promote the growth and development of fishery sub sector in Nigeria.

This study will provide data on socio economic information about artisanal fisher folks in the study area, which will be of interest to the policy makers. The findings will also provide a clue for a transformation that can enhance the quality of life and the standard of living of the rural fishermen with resultant increase in the supply of fish/food to satisfy national macro goals and aspirations.

DETERMINATION OF THE INTEGRATION OF RICE MARKETS IN ENUGU STATE, NIGERIA

ABSTRACT

 

This study was designed to determine the integration of rice markets in Enugu state.  Factors considered include: socio-economic characteristics, existing market structure and channels, integration of rice markets, structural factors that affect the integration of rice markets and the problems affecting rice traders in the state. Forty wholesalers and forty retailers were selected for the study. Primary data and secondary data were collected and analyzed using descriptive statistics, co-integration analysis and market integration function. The results showed that majority of the rice traders were between 30 and 49 years with low educational status and marketing experience ranging from 6 to 10 years.  Unit Root Test showed that the variables were stationary at first differencing and were integrated of the order zero, 1(0).  Rice markets in the study area were integrated but the integration level was low. The Error Correction Model had a coefficient of -0.0061872 which was significant at 1% level and was negative. The Market Integration Function had R2 (Coefficient of Determination) of  0.78 showing that the independent variables explained about 78% of the variations in the prices of rice in the rural and urban rice markets. Transportation cost, toll fee, processing cost and storage cost significantly affected the level of market integration. The greatest problems encountered by the rice traders were inadequate finance, (100%), high transportation cost/bad roads and poor quality of local rice compared to foreign rice. To improve the level of market integration; transportation, processing, storage, communication and credits facilities should be provided.

 

CHAPTER ONE

INTRODUCTION

  • Background Information

Rice is the second largest produced cereal in the world, after wheat. About half of the world population depends on rice for their staple food. In the 1960s, the world rice production averaged at 264MT and over the years it increased to 596MT during 2001-2005 (Reddy, 2006).

In Nigeria, although rice has been a traditional food, it was only recently it assumed a prominent role in the diet of the majority of Nigerians, following a structural shift in the consumption of traditional coarse grains. According to Akande and Akpokodje (2003), the demand for traditional cereals such as millet and sorghum has fallen by 12kg per capita, and their share in cereals used as food has decreased from 61% in the early 1970s to 49% in the early 90s. In contrast, the share of rice in cereals has grown from 15% to 26% over the same period. In addition, the per capita rice consumption has risen from 18kg in 1980s to 22kg from 1995 to 2000 (Ogundele and Okoruwa, 2006). Two major factors appear to be responsible for this structural shift. These include population growth and urbanization, of which the later appears to be more important factor. To the urbanites, the major edge of rice over other traditional cereals is its relative ease of preparation thereby reducing the task of food preparation and fitting more easily into the urban lifestyles of rich and poor alike. Rice indeed is no longer a luxury food in Nigeria but has become a major source of calories for the urban poor. Stylized facts from several states in Nigeria demonstrate that rice availability and rice prices become a major welfare determinant for the poorest segments of the country’s consumers who also are least food secure (Akande and Akpokodje, 2003). From this perspective, rice marketing assumes an important place.

Rice marketing is the performance of all business activities in the flow of paddy and milled rice, from the point of initial rice production until they are in the hands of the ultimate consumers at the right time, in the right place and as convenient as possible, at a profit margin so as to keep the farmer in his farming operations (Iheme, 1996). The marketing of local rice in Nigeria involves four stages with a change of product ownership occurring between each pair of stages (Aderibigbe, 1997). The first stage is production through harvesting. Stage two concerns movement from the farms to processing centers while stage three involves moving the milled rice from processing area to urban consumption centers. The fourth stage encompasses wholesaling and retailing in the urban centers.

The marketing of any commodity is a specialized technique and demands proper organization. In case of agriculture and particularly rice products, the marketing aspect is even more important and demands a proper organization considering the increasing demand for the product (Ikeme, 1990). Efficient marketing system creates and activates new demand by improving and transforming production and by seeking and stimulating customer’s links. It guides farmers to production opportunities and encourages innovation and improvement in response to demand and price (Kohl and Downey, 1972).

According to Olukosi and Isitor (1990), it is within the marketing system that price allocation of resources, income distribution and capital formation are determined. This is to say that prices are key signals in the resource allocation process that take place through markets. A guaranteed market for farmers’ produce is a ready invitation to produce more. The marketing arrangement in a community must ensure that what was produced was sold or stored. Kohl and Uhl (1972) suggested that product should not even be produced at all unless it has a market. Marketing therefore begins with production on the farm.

Over the years, greater percentage of rice output in Nigeria has been from the rural small holder farmers. It has been observed that Nigeria was virtually self-sufficient in rice enterprise up to the 1970s (WARDA, 2004). The self-sufficiency ratio fluctuated between 96.3% and 99.8% between 1963 and 1975. However, since 1976, the ratio has dropped drastically to 41.46% in 1978 following sharp increase in the quantities of rice imported. The major reason for the decline in self-sufficiency  is the dramatic increase in aggregate per capita income following the oil boom, urbanization and changes in consumption patterns and the effects of government food importation policies which aimed at increasing the availability of food at reasonable prices under the National Supply Company (WARDA, 1981).

Market integration refers to a situation in which prices of a commodity in separated markets move together, thereby offering smooth transmission of price signals and information (Reddy, 2006; Intodia, 2005). The study of market integration is important in determining the co-movements of prices and the transmission of price signals and information across spatially separated markets (Samuelson, 1952; Takayama and Judge, 1964). Baulch (1997) noted that the issue of market integration lies at the heart of many contemporary debates concerning market liberalization, price policy and parastatal reforms in developing countries. Without spatial price integration of market, price signals will not be transmitted from food deficit to food surplus areas; prices will be more volatile; agricultural producers will fail to specialize according to long-term comparative advantage, and the gains from trade will not be realized. However, government’s intervention in the pricing and marketing of food and poor marketing infrastructure may impair the role of market mechanism in price transmission between surplus and deficit areas.

 

1.2       Problem Statement

            Despite obviously abundant human and natural resources, Nigeria is still unable to feed her citizens. The projected national demand for rice in the country is put at 4.64 million metric tonnes annually, while the current rate of consumption is put at 2.3 million metric tonnes. Current local production of the commodity is a meager 525,000 metric tonnes per annum. It follows that the country will have to import the shortfall which  is projected to cost $267 million (Ashaka, 2008). Nigeria is the world’s second largest rice importer after Singapore (Ola, 2008). The federal government spent about N80 billion for   the importation of 500,000 metric tonnes of rice from Thailand and other parts of the world in 2008 (Ashaka  2008). This situation which has continued to drain the country’s foreign exchange, has also led to the decrease in the domestic production of rice and over-dependence on rice importation.

Central to the issue of inefficiency in the supply of rice is the problem of inefficiency of agricultural marketing system. Inadequate marketing of agricultural produce has been a major problem limiting agricultural expansion (Care, 2004). Rice farmers and domestic traders are constrained by a number of factors such as high transportation cost; poor market infrastructure and inefficient price information transmission channel. Problems associated with the commodity itself include quality differentials and low caliber of production techniques. Also, the wide gap between rural and urban prices weakens the farmers’ morale thereby reducing productivity and in some cases leads to complete stoppage of production (Care, 2004).

It therefore appears that rice farmers are not getting maximum return from the resources committed to the enterprise; thus the need for this study. Rice farmers do not receive a fair price for their product. This discourages them from producing and expanding their rice enterprise. Rice is cheap in food-surplus areas (rural areas) where rice is produced; and it is expensive in food-deficit areas (urban areas) where the middlemen enjoy the profit at the expense of farmers (Okon and Egbon, 2005).

Production and marketing constitute a continuum; and lack of development in one retards progress in the other. To increase food production there is need to develop a more efficient marketing system with information so that prices in one market can be transmitted to other markets thus synchronizing price.

Studies on market integration in agricultural commodities include those conducted by Chirwa (2000). Jha, et al (2005), and Reddy (2006). By far the most important study relevant to this research is the one by Chirwa (2000). Apart from estimating the spatial integration of maize and rice markets in Malawi, he went further to identify the structural determinants of market integration. This research proposal intends to investigate the situation in the Nigerian market setting. In addition, it intends to identify the socio economic circumstances and problems of rice traders in the area which Chirwa’s study did not cover.

 

 

1.3       Objectives of the Study

The broad objective of this research is to examine market integration via price transmission in spatial markets in Enugu State. Specifically, the study seeks to:

(i)   describe the socio-economic characteristics of rice traders in the state;

(ii)     examine the existing market structure and marketing channels for rice in the state;

  • evaluate the spatial integration of rice markets through price transmission;
  • identify the structural factors which affect the integration of rice markets;
  • identify the problems affecting rice traders in the state and
  • proffer appropriate measures to enhance the role of market mechanism in price transmission and rice distribution in Nigeria.

1.4       Research Hypotheses

The null hypotheses to be tested are that:

  • spatial markets for rice are not integrated;
  • structural factors (transportation, processing, storage, information, communication facilities, etc) do not influence market integration.

 

1.5       Justification of the Study

            Rice is one of human kind’s most ancient and most universally consumed food. It is one grain crop grown almost exclusively for human food. The demand for rice has far exceeded its supply, so, there is need to improve production and marketing of rice, and also ensure that rice markets are integrated.

The study of integration of rice markets is important in order to determine the co-movement of prices and the transmission of price signals and information across spatially separated rice markets. It will also ensure a regional balance between food deficit and food  surplus areas. It will help producers and market intermediaries to identify sources of inefficiencies and how to remedy them.

If prices of rice in different markets are synchronized, it will encourage the farmers to continue in production and to expand their enterprise, thereby making price available in the market. In this way, supply will meet up with demand and rice importation will become a forgotten issue.

COMPARATIVE ECONOMIC ANALYSIS OF SELECTED CASSAVA DERIVATIVES IN UZO-UWANI LOCAL GOVERNMENT OF ENUGU STATE, NIGERIA

 

CHAPTER ONE

 

1.0                                               INTRODUCTION

 

1.1 Background                  

 

Despite the dominant role of the petroleum sector as the major foreign exchange earner, agriculture remains the mainstay of Nigeria’s economy (Oyejide 1986).  In addition to contribution to GDP, it is the largest non-oil export earner, the largest employer of labour, and a key contributor to wealth creation and poverty alleviation, as a large percentage of the population derives its income from agriculture and related activities (NEEDS, 2004). All over the world, the concept of evolving strategies for ensuring natural food security and sustainable livelihood especially for the developing countries has gained full prominence. In view of this, processing cassava into its derivatives for food and income has been the practice of many Nigerians in the rural areas. The current drive towards higher levels of commercialization of cassava processing under the presidential initiative on cassava requires that the scale of cassava processing be increased in Nigeria (Ekwe and Ekwe, 2005).

Cassava is one of the staple food crops grown in Nigeria. Nigeria grows 34,000 tonnes of cassava every year, which constitute the largest output of the crop from any country in the world (Adebayo and Sangosina, 2005). In 1982, Nigeria ranked number six in the world production of cassava with an output of 6.8 million tonnes per annum. Through the cassava multiplication programme (CMP) (1986-1996), Nigeria’s production of cassava increased from 41million tonnes in 2005 to 49million tonnes in 2008 (FAO, 2008).

Today the crop is grown in virtually all parts of the country and is now the focal food crop for foreign exchange earning (Isiorhaorja and Idoge, 2005). In Nigeria, cassava is consumed daily and sometimes more than once a day (Nweke, 2004) and it contributes more than 1000 calories per person per day to the diet of

many families. Cassava is consumed with a sauce made with ingredients rich in protein, vitamins and minerals. Some even eat cassava for breakfast, lunch and dinner (Haggblade and Zulu, 2003). In Nigeria, cassava is very important in the economy and nutrition of poor rural household (NRCRI, 1996). Cassava has other advantages such as ability to store well in the soil for several months as being tolerant to extreme conditions. This is why cassava has been called the “famine security crop” (Philip, 2005). Cassava is of two types; the bitter and the sweet cassava, and they contain cyanogenic glucosides, which break down into hydro-cyanic acid after it has been harvested. The acid makes raw cassava very poisonous for animal and human consumption. Processing of cassava is therefore important as means of removing this poison, increasing its palatability and the storage life.

Cassava processing is a household business as children help in peeling while the women are mostly engaged in the processing, which is done to stop physiological and microbial spoilage, reduce the cyanogenic glucosides content (Asiedu, 1989) and convert the roots to other products which are more acceptable.  However, several constraints affect cassava processing which limit the contribution of the crop to the nation’s economy (Hawn, 1989; Henry, 1999 in Adebayo and Sangosina, 2005). For instance, the cynide content in cassava is a major limiting factor to its utilization, but can be reduced by appropriate processing innovations, (Oyewole and Aibor, 1992). Lack of fund and inadequate storage facilities also affect its processing.

Products derived from cassava include gari, starch, tapioca, fufu, pellets, flour and chip. International Institutes for Topical Agriculture (2004) survey of cassava utilization found that 70%, 15%, 10%, 5% of farmers respectively make gari, starch, fufu and tapioca from cassava.

Gari is cream white granular flour with slightly fermented and slightly sour taste made from fermented, gelatinized fried cassava tubers. The processing of cassava into gari involves certain units of operation. Fresh tubers are peeled, washed and grated. The grated pulp is put in porous sacks, which are weighed down with heavy stones for 3-4 days to expel the water from the pulp while it is fermenting. In some areas, hydraulic jacks are used to expel the water from grated cassava. The dewatered and fermented pulps are sieved and the resulting fine pulp is toasted in a frying pan. Palm oil is sometimes added during toasting with constant stirring so as to present all granules to the heat, to prevent the pulp from lumping and burning. This has an additional effect of changing the color of the product from white to yellow (Alinor, 2002).

Fufu is another form of cassava derivatives. It is a fermented wet-paste made from cassava. It is an indigenous food of most Nigerians in the south. Fufu is processed from cassava by steeping whole or cut peeled cassava roots in water for a maximum of three to five days depending on the ambient temperature. During steeping, fermentation decreases the PH, softens the tuber and helps to reduce potential cynogenic compounds. When sufficiently soft, the roots are broken by hands and sieved to remove the fibers.

Cassava chips are another product of cassava. It is widely used in Nigeria especially in Enugu state. Fresh roots are peeled, washed, boiled in water and sliced into thin longitudinal slices (chips) with knife or cutter. The chips are then poured into a local basket and steeped in water for 1-2 days during which the water is changed once or twice. The chips can be consumed at this stage. Starch is another product of cassava. Cassava roots are peeled, washed and grated. The grated pulp is steeped for 2-3 days in a large quantity of water, stirred and filtered through a piece of cloth. The starch sediments are air-dried under shade. It is used for textiles and in plywood industries as adhesives (NRCRI, 1986). Pellet is obtained from dried and broken roots of cassava by grinding and hardening into a cylindrical shape. The cylinders are about 2-3cm long and about 0.4-0.8cm diameter and are uniform in appearance and texture; they are produced by feeding dried chips into the pelleting machine, after which the diameter are screened and bagged. During the processing of cassava flour, the residual pulp, which is separated from the starch in the screening process, is used as animal feed. The market for cassava can be divided into two categories namely the traditional food oriented market and the emerging market for industrial processed cassava products. The vast majority of cassava grown in Nigeria is processed and sold through traditional marketing channels, which are fairly well known.

Cassava is one of the major sources of energy in Nigeria. That is why it was chosen as one of the focal crops for improvement and development under the nation-wide Agricultural Development Programme (Isiorharoja and Idoge 2005). This, perhaps led to the pronouncement of a presidential initiative on the crop. In 2000, the President of Nigeria, Chief Olusegun Obasanjo announced the initiative to promote cassava as a foreign exchange earner in Nigeria in addition to satisfying the national demand. This is in line with the government policy to give agriculture the highest priority, to reduce poverty in the rural areas and to facilitate economic growth. The challenge of the initiative is to make Nigeria earn 5billion US dollars per year in value added cassava exports within three years, from year 2003 – 2006, (IITA, 2001). The diversification and expansion into new growth markets like ethanol, starch, livestock feed and household flour as substitutes for various imported items present real opportunities for income generation of the rural populace.

The initiative also seeks to develop and satisfy the huge untapped domestic market for cassava as raw materials in the industrial sectors as well as building capacity for export market (RMRDC, 2004).

The objective of the presidential initiative on cassava is to expand primary processing and utilization to absorb the national cassava production, identify and develop new market opportunities for import substitution and export, stimulate increased private sector investment in the establishment of export oriented cassava industries, ensure the availability of clean planting materials targeted at the emerging industries, increase the yield/productivity and expand annual production to achieve global cassava competitiveness for the development of the Nigerian cassava sector and integrate the rural poor especially the women and youth into the mainstream of  the national economy (IITA, 2001).The programmes or the initiatives are implemented through subcommittees drawn from the public and private sectors (Obasanjo, 2003). The ministry of commerce facilitated a trial export of 1000 tons of cassava chips to China in 2003.

However, to meet the volume of demand from China and perhaps other countries, the government through the ministry of commerce will have to invest extensively in bulking/storage warehouses. The Federal Government has to facilitate the revival of the railway cargo transport nation wide, in order to guarantee the availability of cargo volumes for export of the cassava products. This is critical for Nigeria to meet the target of the initiative, however government intervention and efforts of non-governmental organizations in the cassava sub sector had led to a number of measures that support the production of cassava and this date backs to 1986 (Bello, 2003).

The current drive towards higher levels of commercialization of cassava processing under the presidential initiative on cassava requires that the scale of cassava processing be increased and the profitability of the different derivatives tracked. This study will concentrate on three derivatives namely, cassava chips, flour and gari, because the presidential initiatives concentrates on them and they are the common derivatives on the study area.  Since processing of cassava is an income generating enterprise in Uzo-uwani, the profitability of the derivatives will be examined.

 

1.2 Problem Statement

Food security has continued to be a problem in many developing countries. It has been indicated that more than one billion people in the developing countries including Nigeria live below the poverty line and do not have enough food to meet energy and protein requirement for healthy and productive life (FAO, 1996)

Cassava is one of the major sources of energy and the multiplicity of its use makes it indispensable for food security (Asiedu, 1989). Cassava per capita consumption is of very high and provides 80 percent of the total energy intake of many Nigerian’s (FAO, 2002). Its importance forms the premise of the presidential initiative on crop, which is one of the major reforms in Nigeria’s economy from 1999. It is expected that returns from the exports of cassava derivatives especially chips will facilitate the realization of National Economic Empowerment and

Development Strategies (NEEDS) targets of $5 billion a year from agricultural exports.

However, several constraints affect cassava processing which limit the contribution that the crop makes to the nation’s economy (Henry, S.K, A. Westby and C. Collinson, 1999). The constraints include the following, lack of fund, inadequate processing and storage facilities and inefficiency in input supply and distribution, high cost of frying pans, inadequate know- how on processing and storage to enhance shelf life, high transaction cost, market uncertainty, inability of the processors to keep adequate records of production cost as well as the tedious operation technology (Bello, 2003).

It is documented that increasing hectarage, fallow length and use of organic and inorganic fertilizer increases cassava output (Isiohoraja and Idoge, (2005); Osugri 1996; Arene and Mkpado (2004). Very few works, example: Ekwe and Ekwe (2005), Alinor (2002), Oyewole and Sanni (1995) and Ayinde, I.A, O.F. Ashaolu, S.A. Adewuyi and M.U. Agbonlaho, (2005) examined processing and marketing of cassava products. The study by Ekwe and Ekwe (2005) concentrated on processing of cassava into gari and its marketing. There was no report on the marketing channel which should have given insight into the development of the processing enterprises and marketing margins associated with each channel.  Similarly the study by Alinor (2002) determined the profitability of processing cassava into gari and fufu in Nsukka and did not consider order derivatives like chips, and flour. Presently, the presidential initiatives on cassava concentrates mainly on export of cassava flour and its use in baking industry, production of starch and cassava chips as well as export of gari. The need therefore, is to document the present experiences of farmers in processing and marketing of cassava derivatives. With respect to rural economy, where most of the cassava productions take place and on which the Federal Government will rely to succeed in this reform initiatives, the questions are: which cassava derivative gives the highest revenue to farmers and what marketing channel should farmers adopt? This is because improving processing and marketing efficiency of cassava products will reduce food insecurity, poverty and enhance the success of the reform initiatives on cassava.

 

1.3 Objectives of the Study

The broad objective of the study is to compare the economics of selected cassava derivatives in Uzo-Uwani Local Government Area.

The specific objectives of the study are to:

  1. describe the socio-economic characteristics of marketers of selected cassava

derivatives in the study area;

  1. describe the methods of processing selected cassava derivatives;

iii. describe the marketing channels of selected cassava derivatives;

  1. compare the return per naira of investment of marketing cassava flour, chips

and gari;

  1. determine the cassava derivatives with the highest income;
  2. estimate the factors affecting profitability of the selected cassava derivatives;

vii. identify constraints associated with processing and marketing of cassava

derivatives (flour, chips and gari)

viii. make recommendation for development of the presidential initiatives on

cassava.

 

1.4       Hypotheses

The following null hypotheses were tested:

  1. There is no significant difference between the profit from marketing cassava

chips, flour and gari.

  1. Profitability of cassava derivatives does not depend on the socio-economic

Characteristics of the marketers such as gender and marital status.

 

1.5       Justification

Cassava is one of the most important energy sources in the human diet in the tropics. It is an important staple, and cash crop that thrives where most other crops fail (Philip, 2005). Despite the rapid growth of cassava cultivation in Nigeria, processing and marketing are still constrained by certain factors namely; inadequate improved varieties, poor farm management which may not be good for export products, high pressure on land leading to cultivation of cassava on depleted soil, high cost of labor for all production processes, high cost of tubers from the production centers to processing sites and inadequate processing equipment (Bello, 2003).

Rural people even those in Uzo-Uwani make livelihood from processing of cassava into gari, fufu, tapioca, chips, for food and income. But the profitable enterprises that evolved from marketing of cassava derivatives are yet to be empirically documented. Also, the current NEEDS policy document highlighted cassava as one of the export crops of Nigeria, hence it’s enlisting as one of the presidential initiatives/strategies for realization of $5billion from cassava export in 2001(NEEDS 2003). Thus, the study of comparative economics analysis of selected cassava derivatives is necessary, because it will determine the derivatives that have the highest net income, the marketing channel, processing constraints as it affects processors and marketers as well as the exports potentials.

The findings from this study will help policy makers, researchers and processors to address the issue of cassava processing. The study is further justified because its findings and recommendation will benefit researchers as it will serve as a reference point for further studies, processors will be more informed on the profitability of the derivatives and hence in choice making

COMPARATIVE ECONOMIC ANALYSIS OF RAIN- FED AND FADAMA VEGETABLE PRODUCTION IN PERI URBAN AREAS OF EBONYI STATE, NIGERIA

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND INFORMATION

In the 1960s Nigeria relied heavily on the Agricultural sector for economic development (contributing over 70% of the GDP). But with the oil boom of the 1970s, the contribution of agricultural sector fell drastically to the extent that the nation became an importer of major agricultural commodities in the 1980s (Husseni, 1996). Agriculture contributed an average of 74.6% to the Gross Domestic Product ( GDP) in 1960 and with the neglect of the sector, the contribution to the GDP dropped to 1.3% between 1996 and 1999 (Zanna, 2000).

Government, aware of this dangerous trend has since put in place various policies and programmes geared towards resuscitating the sector. These measures and programmes include, the National Accelerated Food Programme (NAFP); River Basin Development Authority (NALDA); National Fadama Development 1; National Fadama Development II, etc. They are some of the Programmes of Federal Government aimed at boosting the country’s food production and foreign exchange earning.

The anticipation that oil may not continue to dominate the economy in the future, as crude oil is an exhaustible asset, substantiates the need for an alternative source of foreign exchange.

Anyanwu et al (1997) noted that the drop in price per barrel of oil from $ 28 to $14.0 during the serious oil glut of 1986, is a clear indication that the economy will critically depend on the agricultural sector when crude oil is exhausted in future.

Nigeria possesses the potentials to produce vegetables that could be exported to earn the much needed foreign exchange. It was reported that Africa and Caribbean countries pioneered the export of vegetables to Europe 30 years ago (CTA, 1992).

Mc Collum  (1998) was of the view that vegetable industry contributed heavily to the economy of the United States of America, with an estimated net return of about $ 5 million per year. The report added that this would be a favourable source of hard currency for African countries.

In the same vein, another report of Swaminathan (2001), shows that vegetables are grown only 6 – 7% of gross cropped area but contributed more than 18.8% of the gross value of agricultural output and 52% of export earning from total agricultural produce in India. This is due to high yield and higher price available in the international market.

In Nigeria, if vegetable is grown in commercial quantity could serve as foreign exchange earner. Countries like Kenya and Morocco export huge amount of vegetables, which are priced and bought in the New Convent Garden Market London, (Common Wealth Secretariat, 1992). Vegetables have multiple roles in Nigeria as a source of employment. Mc Collum (1998), noted that millions of people are employed in vegetable related activities like manufacturing and supplying of machines, seeds, fertilizers, pesticides, packages, and that the present outlook indicates that the vegetable industry would continue to be an important and profitable branch of agriculture.

Vitta (1998) stated that vegetables are principally grown for food and with the increase in the world population; there is the need to have more than one cropping season, which cannot be dependent on rainfall. The importance of vegetable production is indicated by the government of Nigeria in her FADAMA I and II Programmes, which enable farmers to grow vegetables round the year.

The small – scale fadama irrigation project being implemented through the state – wide Agriculture Development Project (ADPs), by the introduction of low cost, petrol – driven pumps, along with various types of drilling technologies is geared towards tapping shallow ground water (World Bank, 1992).

The National Fadama Development programme (NFDP) was initiated following the recommendations of the World Bank in its report of 1989 tilled “NIGERIA – STRATEGY FOR AGRICULTURAL GROWTH”. It identified the development of small scale irrigation for the production of off-season high value crops in order to increase the productivity, income, living standard and development capacity of the rural poor in Nigeria (Falusi, 2000). To that effect, the World Bank funded the National Fadama Development Project I (NFDP – I), which lasted between 1993 and 1999, and was implemented in Bauchi, Gombe, Kano, Jigawa, Sokoto, Zamfara, Ebonyi and Kebbi States etc. Considerable success was recorded as there was progress against the general trend towards irrigated agriculture in the 1980s (Sulaman, 1998, World bank, 2003).

Consequently, the National Fadama Development Project II (NFDP – 2), a six-year programme was launched in 2004. The Project Coordinating Unit (PCU) coordinated the project, but the actual implementation was at the state level in an estimated 1574 Fadama Communities in twelve participating states that met the agreed eligibility criteria (Blench and Ingawa, 2004). The project, among other things, focused on rural infrastructure investment as well as enhancing productivity and income of fadama users.

An FAO (1996a) report on Peri-urban irrigation development through Fadama shows that in the year 1995, short product cycles and rapid adjustment to market demand and climatic conditions resulted in a surprisingly high, regular income to peri-urban farmers as well as to market entrepreneurs in India.

In Ebonyi State, there was great enthusiasm on the part of the farmers that participated in the project I. This was shown by the formation and registration of 130 Fadama users Association (FUAs), ( EBADEP 2000).

According to available statistics, output from rain-fed vegetable production in Ebonyi State increased from 137 tons in 1994 to 220.6 tons in 1998, and fadama vegetable production rose from 101.2 tons in 1994 to `175 tons in 1998 (Ebonyi ADP, 1999). However, it requires an empirical study to achieve a stable increase in productivity, through efficient and sustainable utilization of existing resources.

 

1.2     PROBLEM STATEMENT

The population of Nigeria is increasing continuously and the amount of protein requirement is becoming unaffordable to the rural poor. Consequently, a good percentage of households have fallen back to vegetable consumption as an alternative source of protein leading to an increase in its demand (Saloko, 2000). But the supply of vegetable is grossly and persistently inadequate. This has become a topical issue and most recently to a number of international bodies (Kuta, 2002). A crop yield survey carried out by Project Coordinating Unit (PCU) in 1998 reveals a drastic reduction in the potential yield of some crop varieties. Dry season vegetable produces 0.5 to 1.5 instead of 4 tonnes, Rain –fed vegetables yields 1 to 1.6 tonnes instead of 3 tonnes, a deficit of between 25 to 50% is therefore experienced by farmers for various reasons (Saloko 2000).

According to Adekalu and Ogunjimi (2002), performance of rain-fed and Fadama farmers, in relation to economic viability in the country, has not been encouraging. It is an accepted fact that vegetable production is facing the problem of increasing cost of production. Ditto (2001), asserted that there are unclear signals to whether the Fadama and rain-fed vegetable farmers are making efficient use and management of available farm resources.

Production and price risks are high due to weather uncertainty and poor market infrastructure. Besides, the erratic nature of rainfall has constituted a great constraint to increased vegetable production, among other factors. There is however, ineffective combination of measures aimed at increasing the level of farm resources added to the inefficient utilization of existing resources (Ogunjimi, 2002). Over the years, there are existing gaps in knowledge in the production potentials of these two vegetable systems. To fill these gaps therefore, the following research questions are necessary: What is the level of resource available for rain-fed and fadama vegetable production in Ebonyi State? What are the prevailing enterprise combinations? What are the determinants of farmers resources use efficiency for improved vegetable production? What are the possible returns from the output of rain-fed and fadama vegetable production systems? Can the productivity of the available resources be improved substantially through efficient utilization?

In view of resource constraints, which one of these systems is more profitable. Meanwhile, the government is encouraging fadama development.

This needs to be justified, hence this study.

 

 

 

 

 

 

 

 

 

1.3     OBJECTIVE OF THE STUDY

The broad objective of the study is to carry out a comparative analysis of fadama and rain-fed vegetable production in peri-urban areas of Ebonyi State.

The specific objectives are to:-

  1. compare the socio-economic characteristics of rain-fed and fadama farmers, in relation to resource allocation and output;
  2. describe the rain-fed and fadama farming systems of vegetable production;
  3. compare costs and returns of fadama and rain-fed vegetation production and their relative contribution to household income in a given year;
  4. determine and compare the productivity of resources used in both systems;
  5. identify problems and constraints to resource use;
  6. make recommendations based on the findings.

 

1.4     RESEARCH HYPOTHESES

Based on the research objectives, this study was guided by the following null hypothesis.

Ho:    There is no difference in the effects of socio-economic variables influencing resource allocation and output in both systems.

Ho:    There is no significant difference in resource use and productivity between fadama and rain-fed vegetable enterprises.

 

1.5     JUSTIFICATION OF THE STUDY

Government, in the recent past has embraced policies aimed at enhancing productivity and efficiency in rain-fed vegetable production and extension of improved technologies on fadama (Dry season) farming to small –scale fadama farmers. These serve as important tools in the development of the agricultural sector.

In spite of these interventions, the enterprise has been faced with the problem of low productivity and low income among rural farmers. This is as a result of information gaps on the productivity of resources (Aiyedu 1994).

The ever increasing fluctuations in the output of vegetables in Ebonyi State is something to worry about. At present most of the farm level studies that have been conducted to find out the factors that influence the efficiency and productivity of resources used in vegetable production are mostly based on rain-fed agriculture (Ugwu 1990).

The intention of this study is to update that information gap, having identified the need to increase agricultural production through the stabilization of both rain-fed and fadama farming.

Although the work is limited to Ebonyi State, it is believed that the findings will be useful in other states of the federation in view of the similarities of their vegetable production systems. The study will also be  a useful reference point to prospective vegetable farmers. It will also be useful to researchers, students, policy makers and implementors.

Contents

COMPARATIVE ANALYSIS OF RESOURCE USE EFFICIENCY IN RICE PRODUCTION AMONG FADAMA III AND NON-FADAMA III BENEFICIARY RICE FARMERS IN NIGER STATE, NIGERIA

ABSTRACT

This study investigated resource use efficiency of Fadama III and non-Fadama III beneficiary rice farmers in Niger State, Nigeria. Primary data were collected using questionnaire/interview schedule administered to a sample of one hundred and twenty rice farmers, selected using multi-stage sampling technique. Data were analyzed using descriptive statistics, stochastic frontier production function, return to scale analysis, gross margin analysis, net farm income analysis and likert scale rating technique. Maximum likelihood estimates of the Cobb-Douglas frontier function showed that coefficient of  seeds (0.479), labour ( 0.445) and herbicides ( 0.093) had significant effects on output of Fadama III beneficiary rice farmers while fertilizer ( 0.069) is the input with significant effect on output of the non-beneficiary farmers. The estimated coefficients of the inefficiency model revealed that age, household size, educational level, extension contact and Fadama advisory services positively affected Fadama III rice farmers’ technical efficiency, but only age and educational level were significant. On the other hand, age, household size and extension contact positively affected non-Fadama III rice farmers’ technical efficiency, but only extension contact was significant. An increasing return to scale of 1.432 and 1.168 were recorded for the Fadama III and non-Fadama III rice farmers, respectively. The technical efficiencies of the Fadama III rice farmers ranged from 0.411 – 1 with a mean value of 0.79 while that of the non Fadama III beneficiary rice farmers ranged from 0.435 – 0.989 with a mean value of 0.81 on the scale of 1.This showed that technical efficiency can be increased by 21 and 19 percents to attain optimal level in the Fadama III and non Fadama III beneficiary rice farmers, respectively. Allocative efficiency analysis showed that all resource inputs were underutilized. Fadama III rice farmers made a gross margin of N69, 288.37, a net farm income of N67, 599.91 and a return on Naira Invested of 1.81 per ha while the non-Fadama III rice farmers made a gross margin of N30, 250.36, a net farm income of N28, 550.26 and a return on Naira invested of 1.12 per ha. The student t-test showed that there was no significant difference between the technical efficiencies of Fadama III and non-Fadama III beneficiary rice farmers. However, the t-test showed a significant difference between the profit of the Fadama III and non-Fadama III rice farmers. The study recommended that project implementers should tackle the challenge of elite capture, inputs diversion and intensify advisory services/training, while policy makers facilitate the usage of high yielding seeds, labour saving technology and agro-chemicals for rice farmers.

 

CHAPTER ONE

             INTRODUCTION

1.1     Background to the Study

The food sub-sector of Nigerian agriculture has a large array of staple crops, but rice has risen to a position of pre-eminence. At independence in 1960, rice was merely a festival food consumed mostly in affluent homes during the Christmas and other religious festivals (UNEP,2002). However, as shown in the report of Akpokoye, Lancon and Erenstein (2001), since the mid-1970s, rice consumption in Nigeria has risen tremendously, (+10.3% per annum) as a result of accelerating population growth rate and changing consumer preferences.  Urbanization appears to be the main cause of the shift in consumer preferences towards rice in Nigeria.  Rice is easy to prepare compared to other traditional cereals, thereby reducing the chore of food preparation  and fitting more easily  the  urban lifestyles of rich  and poor  alike.  The poorest third of   urban households obtain 33% of their cereal-based calories from rice, and rice purchases represent a major component of cash expenditures on cereals (World Bank 1991).

Ogundele and Okoruwa (2006) noted that in an apparent move to respond to the increased per capita consumption of rice in Nigeria, local production boomed, averaging 9.3% per annum. These increases have been traced to vast expansion of cropped rice area at an annual average of 7.9% and to a lesser extent to an increase in rice yield of 1.49% per annum.  In spite of this, the production increase was not sufficient to match the consumption increase.

Rice production, according to Onoja (2007), can be found in each of the geopolitical zones of the country. These extend from the Northern to Southern zones with most rice grown in middle Belt (Niger, Benue, Kaduna, Kogi and Taraba States) and the Eastern states (Enugu, Cross River and Ebonyi States). Daramola (2005) observed that the middle belt of the country (where Niger state is located) has a comparative advantage in production over the other parts of the country.

According to Singh et al (1997) rice production systems in Nigeria include upland rainfed, lowland rainfed, irrigated lowland and deep water and mangrove rice. Daramola (2005) asserted that mangrove is the least important in terms of area, accounting for less than 1% of the total rice area with deep water accounting for 5% of the rice production area, although this figure is most likely overestimated given the physical unit to area expansion in this environment. Of the estimated three million metric tons of annual rice production, three major rice production systems, namely upland rainfed, lowland rainfed and irrigated productions account for 97%. West African Rice Development Association – WARDA (2003) and Daramola (2005) agree that lowlands without water control i.e. Fadama areas are the main ecology followed by upland and irrigated rice.

In order to address the demand /supply gap, governments have at various times come up with policies and programmes. These include National Accelerated Food Production Programme established in 1972, Agricultural Development Project established in 1975, Operation Feed the Nation established in 1975, River Basin Development Authority established in 1978, the Green Revolution established in 1980, the Directorate of Food, Road and Rural Infrastructure established in 1985, National Land Development Authority established in 1988, National Fadama Development programme established in 1992 and FADAMA II established in 2004.     The first National Fadama Development Project was approved on March 26, 1992 and became effective February 23, 1993. Small scale irrigation in the fadama has been hampered by several constraints which include poor infrastructure in the Fadamas, low investment in technology development and extension for irrigated agriculture, weak financial intermediation, poorly organized Fadama Farms and limited access to foreign exchange for importation of irrigation equipment. The first National Fadama Development Project – FADAMA I was designed to tackle these constraints (NFDP, 2003). The programme came to a close on March 31, 1999 and FADAMA II and III later came on board.

The second and the third National Fadama Development Project which started in May, 2004, and March, 2009, respectively aims to sustainably increase the income of all users of Fadama resources that include crop farmers, gatherers of edible and non edible fruits, fisher folks, hunters, pastoralists and service providers. In Niger State the Fadama II was implemented in the eleven participating local government areas which are Agaie, Lavan, Katcha, Lapai, Shiroro, Suleja, Chanchaga, Kontagora, Mariga, Magama and Borgu, while Fadama III is being implemented in the entire twenty-five LGAs of Niger State. The project development approach is the Community Driven Development   (CDD) which is a bottom up approach that empowers communities /associations to develop social and all inclusive local development plans whereby communities take responsibility for designing, implementing, operating and maintaining as well as monitoring and evaluating the sub projects as prioritized in their local development plans (NSFDO 2005).

Having expended much in the Fadama Project, a World Bank intervention that  employs a Community Driven Development approach, it is very pertinent to determine the resource use efficiency of rice farmers, the major users of Fadama in Niger State, since World Bank (2009 ) observed that out of the three CDD objectives (service delivery, empowerment/governance and economic livelihood) evaluation data has been most lacking on outcomes in terms of improvements in the lives and incomes of the poorest people themselves.

1.2     The Problem Statement

The demand for rice has been increasing at a much faster rate in Nigeria than in any other African country since the mid 1970s (FAO, 2001). According to Coalition for Africa Rice Development (2009), Nigeria’s estimated annual rice demand is about 5 million tons, while it produces on the average about 2.21 million tons milled product. The national rice supply demand gap of 2.79 million tons is abridged by importation. Agriculture Digest (2008), reported that the shortfall that is imported annually is projected to cost $267 million. In the light of foreign exchange constraints, this scenario will jeopardize the food security policy of the federal government if left unchecked.

Generally, expected increases in agricultural demand associated with population growth and rising per capita incomes will require continuing increases in agricultural productivity. Agricultural productivity of a production unit, defined as the ratio of its output to its input, varies due to differences in production technology, differences in the setting in which production occurs and differences in efficiency of the production process (Kebede, 2001).

Central to the challenge of Nigeria’s rice supply and demand gap is the issue of efficiency of the rice farmers in the use of resources. Average yield of upland and lowland rainfed rice in Nigeria is 1.8 tons per hectare, while that of the irrigation is 3.0 ton /ha. This is very low when compared with 3.0 ton/ha from upland, and lowland systems and 7.0 ton/ha from irrigation systems in places like Cote d’Ivoire and Senegal (WARDA and NISER, 2001). It, therefore, appears that rice farmers in Nigeria are not getting maximum return from the resources committed to the enterprise. The question posed by Mbah (2006) was whether this scenario was a result of farmers’ inability to accept changes or inability to utilize resources efficiently.

With the advent of the National Fadama Development project, fadama rice farmers in Niger State have been facing rapid changes in circumstances that shape their households and even community lives. The intervention of the project in the form of Capacity Building, Advisory Services, Community Driven Capital Asset Acquisition, Economic and Rural Infrastructure should affect farmers’ behaviour in their decision making process. Under these circumstances and in light of the aforementioned factors which Kebede (2001) said occasion variation in productivity, it is important to raise the questions: Are Fadama rice farmers now making efficient use of resources? Do rice farmers in the benefiting communities of Fadama project record higher profit than those in the non-benefiting communities? Given the changes brought about by the Fadama project this study seeks to find out if Fadama rice farmers in Niger State have overcome challenges pertaining to productivity, profitability and if they now make efficient use of resources.

1.3     Objectives of the Study

The broad objective of this study is to conduct a comparative analysis of resource use efficiency in rice production among Fadama III and non-Fadama III beneficiary rice farmers in Niger State.

The specific objectives of the study are to:

  1. examine and compare the socio-economic characteristics of Fadama III and non-Fadama III beneficiary rice farmers in Niger State;
  2. determine and compare the technical efficiencies of Fadama III and non-Fadama III beneficiary rice farmers in Niger State;
  • estimate the return to scale of Fadama III and non-Fadama III beneficiary rice farmers in Niger State.
  1. determine and compare allocative efficiencies of Fadama III and non-Fadama III beneficiary rice farmers in Niger State;
  2. determine and compare profitability of Fadama III and non-Fadama III beneficiary rice farmers in Niger State;
  3. identify the major constraints of rice farming in Niger State and
  • make recommendations based on the findings of the study.

 

 

 

1.4     Hypotheses of the Study

The following null hypotheses guided the study:

H01:  There is no significant difference in technical efficiency between Fadama III and non-Fadama III beneficiary rice farmers in Niger State.

H02 : There is no significant difference in profitability between Fadama III and non-Fadama III beneficiary rice farmers in Niger Sate.

1.5     Justification for the Study

Developing economies can benefit from efficiency studies. Measurements of the extent of efficiency indicate which aspects of farm characteristics can be addressed by public investment to improve efficiency (Kebede, 2001).

The food problem in Nigeria has been exacerbated by the low level of productivity of resources used in recent time. Existing low level of productivity in food grain production reflect low level of technical, allocative and economic efficiencies. According to CBN (2003) increase farm productivity and efficiency is no longer debatable but a necessity in view of imminent food deficit experienced in the country as judged by the over reliance on food importation.

At the moment there is no comprehensive and up to date information as regards the level of resource use efficiencies of the farmers. The few available ones were either based on other systems or on other locations. Anvebuwa’s (2006) and Mba’s (2006) focused on profitability of rice marketing in Ebonyi State. Aye and Oboh (2005) studied resources use efficiency in rice production in Benue State. Onoja (2007) studied the efficiency of rice production under small scale FMIS and lowland rain-fed system in Kogi State. Nweze and Abdurrahman (2008) studied Fadama farming system in Bauchi and Gombe State.

In recent years, despite all the human and material resources put into the sector, the rate of its productivity increase is said to be declining (Falusi, 1995). According to FACU (1992) and FDA (1995) the productive efficiency for most crops still falls short of 60 percent. The shortfalls are attributable to inefficiency in production. This implies that there is scope for additional increases in output from existing hectarages of food crops if resources are properly harnessed and efficiently used.  This study becomes crucial since increased output and productivity are directly related to production efficiency /inefficiency given the state of technology.

Given the huge financial investment in the Fadama Project, the unimpressive performance of some similar earlier efforts, the potentialities of the project to empower farming households in communities with Fadama resources as well as the manifest gap between demand for and supply of rice in Nigeria, the need for a study to ascertain the resource use efficiency of Fadama rice farmers is justified.

The findings of this research would serve to guide policy makers, extension workers, Fadama Project implementers, governments and donor agencies in some areas of their projects or programmes with needs for adjustments. The results of this study will also provide baseline information for further research and policy formulation in agriculture – specifically, policies for improving technical efficiency and profitability of rice farm households.

APPRAISAL OF POULTRY FEEDS’ MARKETING IN ANAMBRA STATE, NIGERIA

ABSTRACT

This study examined the marketing of poultry feeds in Anambra State, Nigeria. The specific objectives were to: describe the socio-economic characteristics of the poultry feeds marketers; identify and describe the marketing channels for poultry feeds; describe the promotional activities adopted by these poultry feed marketers; assess the degree of market concentration among wholesalers and retailers of poultry feeds; determine the marketing  margins for poultry feeds at wholesale and retail levels and ascertain the factors that determine the selling price by the marketers of poultry feeds. The study was guided by the null hypothesis: There is no difference in the marketing margins of wholesalers and retailers of poultry feeds. A survey design was adopted in the study. Data for the study were collected from a sample of 120 marketers through the use of two sets of structured and pre-tested questionnaire. The data were presented using descriptive statistics while Gini coefficient, marketing margins and multiple regression were used for the analysis. The study showed that  males (63.3%) dominated wholesaling, while females (55%) dominated   retail marketing business of poultry feeds. About 70-75% of them were within the highly productive age range of 20-50 years. About 11.7% of the retail marketers attended primary school while 43.3% and 45% attended secondary and higher institutions, respectively. Majority (86.7%) of the wholesalers bought directly from producers (feed millers) while 13.3%  bought from other wholesalers. Most (95%) of the retailers made their purchases through the wholesalers. Marketers purchased poultry feed products packaged in bags of 25kg weight and distributed same using the same packaging from the producers. Some retailers also sold in producers’ packaging and /or smaller measurement. Majority (88.3%) of the wholesalers obtained information on source of supply through personal contact from others in the same trade or suppliers’ agents. There was poor marketing information as new product introduction strategy was also done by personal contact and price reduction. Popular means of advertisement like radio, television and newspapers were not very common. Only about 5% of the marketers were influenced through the mass media. There were high inequalities in sales distribution as well as income among the marketers as Gini coefficient values of 0.46 and 0.57 were obtained for wholesalers and retailers, respectively. The mean marketing margin of N138/25kg bag or 6% for wholesalers was higher than the mean value of N105/25kg bag or 4% for retailers. There existed a significant (p<0.05) positive correlation among the selling price, buying price and salary of sales clerk  for wholesale price. Loading/offloading cost and promotional costs exhibited significant (p<0.05) negative correlation with the wholesale selling price. Analysis of the factors that affected the retail selling price showed that there existed a significant (p<0.05) positive correlation among selling price and transportation costs. Salary of sales clerk exhibited a significant (p<0.05) negative correlation with the retail selling price.

 

CHAPTER ONE

INTRODUCTION

  • Background Information

The role of agriculture in the country’s economy cannot be over- emphasized. Prior to the oil boom period in the mid-1970’s, it had been the largest foreign exchange earner for the country. It has evolved from just a means of livelihood to a business for not only are modern techniques of production employed, but also the most sophisticated management and marketing techniques. Agriculture therefore is a wide discipline and poultry keeping is just one industry in the agricultural set-up (Okafor, 1984).

The main domesticated avians contributing in one way or the other to the economy of Nigeria are the domestic fowl, guinea fowls, turkeys, ducks, geese, pheasants and pigeons. The usefulness of these species are many and there are little or no religious, cultural and social barriers or prejudices to their rearing or use of their parts and products in Nigeria (Izunobi, 2002).

The level of animal protein intake in Nigeria represents only about 10% of the intake in countries like Denmark, U.S.A., New Zealand and the United Kingdom (Akin, 1976). According to Izunobi (2002), of the protein intake in Nigeria, poultry meat supplies only about 20% of the total meat needs of Nigerians. This is grossly inadequate.

Chicken contains quality proteins, lipids, carbohydrates, multitude of vitamins, minerals and pigments. They also possess natural aroma and flavor compounds. Eggs are excellent food, possessing quality proteins of high biological values (Izunobi, 2002). Egg, a product of the industry, gives about 3.5g of the total 7.2g animal protein required for individual dietary need per day (Adene and Oguntade,, 2006).

The poultry industry provides employment opportunity for the teeming population. The industry, if desired attention is paid to it by government at all levels, can successfully absorb a large number of unemployed youths across the country, currently roaming about in search of unavailable jobs, through its chain of agro-allied industry; commercial feed and toll milling, poultry products processing, poultry-marketing, veterinary pharmaceutical, hatchery operation and breeder farming (Eko, 2009). In addition, the industry, if properly harnessed, can also serve as source of foreign earnings, complementing the crude oil – the main source of foreign earnings presently which is responsible for over 90 percent of our exports. (Adene and Oguntade, 2006).

According to Ali (2011), since 1986, Nigeria’s import ban on corn has  contributed to steady decline in poultry production. He also observed that Nigerian poultry market had seen prosperous times. For two decades after the country achieved independence in 1960, poultry production grew, peaking in 1982 with 40 million commercially reared birds. Since then, he also stated, the population of birds dipped steadily reaching an estimated low rate of 6  million in 1997. Furthermore, Ali added that since production figures for poultry were not maintained by the government, the only way to estimate the number was by the amount of feed sold. In 1997, an estimated 225,000 metric tonnes of commercial poultry feed was sold in the Nigerian market down from 250,000 tonnes in 1995. The feed milling industry in Nigeria is only producing at about 15 percent of capacity (Ali, 2011). This faltering market can be traced back to the early 1980’s, when the Nigerian economy collapsed. An unstable government import bans and intervention efforts by the World Bank caused price realignments that weakened purchasing power and pushed up the cost of poultry inputs and products.

Poultry feeds are animal feed used to feed poultry birds. They are formulated from a mixture of ingredients, including cereal grains, cereal by-products, fats, plant protein sources, animal protein sources and by-products, vitamin and mineral supplements, crystalline amino acids and feed additives compounded in such a way as to provide essential nutrients for sustaining optimum growth and production. Poultry feed is a poultry input and its demand is derived from the demand for the poultry and/or its products. Poultry feeds are categorized in such a way as to provide specified nutrient, composition for different productive purposes (Standards Organization of Nigeria [SON], 1977).

The poultry feed is the nucleus of poultry industry and its development is directly related to that of the poultry industry. Poultry feed represents the major cost of poultry production, constituting about 70 percent of the total cost. Of total feed cost, about 95 percent is used to meet energy and protein requirements, about 3 to 4 percent for major mineral, trace mineral and vitamin requirements and 1 to 2 percent for various feed additives (Ravindran and Blair, 1992).

Compounded poultry feed can be in form of mash or pellets. There are three types of feed millers in the poultry industry, namely; custom, toll and integrated farms. The custom millers mill and market their feeds under registered trade names. The dominant trade names in the Nigerian market include Top Feeds, Livestock Feeds (Pfizer), Rainbow Feeds, Guinea Feeds, Animal Care Feeds and Vital Feeds. Some of these custom millers have adopted franchising as an operational method for achieving a wider reach across the country. The toll millers are spread across major locations with significant concentration in small-to-medium scale poultry farms. They mill feed to the specification of customers (poultry farmers) and charge a fee (toll) per quantity milled. The customers either bring their feed ingredients or purchase them from the millers, if the millers have them in stock. The third category of feed millers is the integrated poultry farmers, they own feed mills and produce feed for own use (Adene and Oguntade, 2006).

The feed millers acquire their grains from grain merchants/buying agents who source their grains mostly from the northern parts of the country. These merchants have established networks for aggregating grains from smallholder farmers and have mastered the logistics of grain transportation across the country. They also depends on importers for the supply of the imported feed ingredients such as fish meal, lysine, methionine and soya meal. These importers also use intermediaries to reach the feed millers that are spread across the country but with higher concentration in the south. The poultry shops generally market various inputs of the poultry sub-sector, one of which is branded feed obtained from custom feed millers. Poultry farms that do not have their own feed mills have the option of patronizing the toll millers, custom millers, or the poultry shops (distributors). The poultry feed supply chain is illustrated in figure 1.1.

 

 

  • Statement of the Problem

The Nigerian poultry and feed mill industry at the moment is bedeviled by enormous problems that hinder its growth and marketing of its products and inputs (Okafor, 1984; Aletor and Daramola 1989; Achoja, Ofuoku and Okoh 2006; Adene and Oguntade, 2006; Eko, 2009). Among these problems are lapses in government policies, insufficient marketing and production information, infectious diseases, increasing cost of medication, high cost of feed ingredients, lack of government funding and investment in the sector, lack of credit facility, poor road network, lack of storage facility and credit sales.

Aldetor and Daramola (1989) identified lapses and inconsistencies in government policies as modifying factors in the operation of the industry, for instance, the 1986 military government policy that led to the imposition of World Bank /IMF dictated  policy of Structural Adjustment Programme (SAP). This policy led to rapid collapse of the poultry industry. Only about 20% of the more than 5,000 commercial poultry farmers existing pre-SAP survived by  mid-1990s (Adene and Oguntade, 2006).

This policy led to the massive devaluation of the naira, ban on the importation of grains (a major raw material in poultry industry) and withdrawal of government direct investments and subsidies for the sector, leading to the collapse of farms owned by poor farmers across the country and resultant loss of jobs, due to prohibitive cost of production and marketing (Adene and Oguntade, 2006). This made it possible for big farms like Obasanjo Farms (Nig.) Ltd of Otta, Zartech Farms of Ibadan, CHI Ajala Farms of Ibadan, Animal Care Services Konsult (Nig) Ltd of Ogorein, Ogun State, Zarm Poultry and Feedmill Industry ltd of Ilemona in Kwara State and Sambawa Farms (Nig). Ltd of Kaduna in the northern part of the country to dominate the poultry business, amassing huge profits in the process, to the detriment of poor farms (Eko, 2009).

Another area that poultry and feedmill industry is  witnessing a setback is  the marketing of its feed input. Many poultry producers, marketing agents and consumers have limited information on feed formulation and manufacture, product processing and packaging, product handling, storage quality standards as well as marketing strategies. Okafor (1982) noted that the problem of reducing marketing and production costs remained high in Nigeria and that one of the more important marketing costs is that of poor market information. This, he supported, by saying that it was well known that while surpluses existed in some areas, there was scarcity in others, a fact reflected in prices.

Infectious disease is another major challenge to the industry because of the economic importance of disease causing organisms like bacteria, virus, fungus, and protozoa, which birds are susceptible to. These bring about devastating effects to flocks, the farmers and marketers (Eko, 2009). For instance, the outbreak of avian influenza, otherwise known as bird flu, in 2005/2006 led to the death of over 1.5 million birds across the country. It will be recalled that a large number of poor farmers lost their means of livelihood when their flocks were destroyed by government without compensation, while the rich farms (Obasanjo and Sambawa among others) made fortunes from both government and foreign door agencies (Ugwu, 2009).

Eko (2009) also noted another obstacle confronting the poultry industry in Nigeria as the inability of a large number of farmers and marketers particularly the poor ones, to secure loans from both commercial and micro finance banks across the country. This is because most of these banks attach conditions beyond the reach of the farmers including collateral (landed property), 25 per cent (%) interest rate, 3 – 6 months moratorium, and other sundry charges, making access to loans practically impossible for poor farmers, despite the banks’ much vaunted farmer-friendly agricultural loans in Nigeria.

Most of the access and rural roads leading to commercial poultry farms in the state are passable during the dry season but some are inaccessible during the rainy season. This attribute makes it difficult for poultry farmers to transport their production inputs such as feeds and marketers also find it difficult to reach those production area. Achoja, Ofuoku and Okoh (2006) observed that the quantity of poultry feeds sold and revenue generated decreased as the cost of transportation increased and vice versa. As marketers spend more money on transport, their capital decreases, reducing their purchasing power/capacity  and thus reducing the contribution of marketing input to output. Ahmed and Rustagi (1984) reported that a major cause of marketing problems often lies in defective infrastructure, particularly road and transport services. According to them, more than half of the higher marketing cost in Africa in comparison with those in Asia is due to inadequate marketing infrastructure. Omoruyi, Orhue, Akerebo, and Aghimien (1999) also asserted that in some villages, there were no good roads and most were accessible only in the dry season. Farmers/buyers, therefore, paid very high transport cost. High transportation cost may reduce the effectiveness of allocation of stock over space.

According to Ayodamola (2009), farmers complained that the amount they spent on feed kept rising regularly, either there is an increase in the price of maize, soyabean cake, groundnut cake or other ingredients used in processing the feeds. Most times, the price of buying feed from the mills was very expensive that the farmers wish to get out of the business. Many farmers are now finding alternative feeding means for their birds while others are getting out of the business. Achoja, Ofuoku and Okoh (2006) observed that the most prevalent socio-economic problems facing poultry feed marketing were high cost of procurement of poultry feeds at source (90%), poor road network (80%) and inadequate finance (70%). This implies that the marketing of poultry feed is capital intensive. The relatively high cost of poultry feed at source shows that a high proportion of funds invested in poultry feeds marketing is directed to this factor, and goes a long way in discouraging many marketers, particularly the resource – poor dealers. FAO (2007) also reported that investment in marketing by private and rural community sectors also depended upon the price levels and margins allowed.

Omoruyi et al, (1999) observed that storage problems accounted for the increasing cost of marketing and high retail price. They noted other socio-economic problems affecting poultry feeds marketing were credit sales (40%) and late arrival of stock (30%). According to Shepherd (1989), consideration of location can be important in supplying the product and reducing glut.

Different research works have been done on some of the problems of the poultry and feed mill industry but from the available information, little or nothing have been done to ascertain the most commonly used and the best communication/promotional mix to create awareness of the problems among the stakeholders and   proffer solution that can mitigate the problems in the industry. In addition, there is scarcity of published information on the nature and characteristics of poultry feeds business enterprises in Anambra state. It is the intention of the study to fill this gap.

This study concentrate on marketing of poultry feed produced by custom millers sold to poultry shops (distributors) and used in feeding domestic birds among other avian species. It is also based on marketing of poultry feeds in Anambra State, in Nigeria, which has high concentration of medium-to-small scale farmers with few large scale farmers. The study provides information that would assist the poultry feed dealers/marketers in effective marketing processes, and provides recommendations that answers the following research questions:

  • what are the socio-economic characteristics of poultry feed marketers in Anambra State, Nigeria?;
  • what are the marketing channels of poultry feed in the area?;
  • what type of communication mix appeals to the marketers and the end              users?;
  • what is the degree of market concentrations among the feed marketers in the area?;
  • what are the marketing margins of poultry feed wholesalers and retailers in the area?; and
  • what factors affect the selling price of poultry feed in the area?

 

  • Objectives of the Study

The broad objective of this study is to analyse the marketing of poultry feeds in Anambra State, Nigeria.

The specific objectives are to:

  • describe the socio-economic characteristics of the poultry feed marketers;
  • identify and describe the marketing channels of poultry feeds in the study area;
  • Describe the promotional activities adopted by these poultry feed marketers;
  • assess the degree of market concentration among wholesalers and retailers of poultry feed in the area;
  • determine the marketing margins for poultry feed at wholesale and retail levels;
  • ascertain the factors that determine the selling price by the marketers of  poultry feed; and
  • make policy recommendations based on the research findings.

 

  • Hypothesis of the Study.                                                                                     The null hypothesis below will guide the study:
  • There is no difference in the marketing margins of wholesalers and retailers of poultry feed.
    • Justification of the Study

The importance of the poultry industry cannot be over-emphasied because of the vital roles it plays in human nutrition. Of equal value is the employment opportunity it provides for the teeming population.

This study helps to highlight and design appropriate policies that brings about an efficient marketing of poultry feed. There is need to carry out an indebt study of poultry feed marketing in Anambra State, Nigeria, because of its high concentration of small to medium scale farmers. It is also hoped that the study will be useful to the researchers, farmers, marketers and policy makers to determine their needs/gaps in order to reach their stated goals.

Government and policy makers also benefits from the findings of this study by utilizing the information gathered from this study to address the problems of poultry feed marketing. This will be used as checks and balances by policy makers and academics in designing subsequent ways to make effective, as well as efficient, processes involved in poultry feed marketing in the study area. Furthermore, this study will complement other related studies conducted to guide appropriate policy options for improved performance of marketing of poultry feed in Nigeria

An Assessment Of Mass Media Role In The Campaign Against Drug Abuse In Nigeria

CHAPTER ONE

  INTRODUCTION

 

1.1       BACKGROUND TO THE STUDY

There is no limit to the study of media and society. Media and society as a subject covers a wide range of issues. Communication has a lot to do with the individual.  It effects and defects are so notable that they cannot be swept under the carpet. Media and society are interwoven and neither of them can exist without the other. But first of all, what is communication?

Fiske (1990) defines communication as “social interaction through message” Jaya- weera (1991) sees it as an interaction process through which persons or groups relate to each other and share information, experience and culture.  Looking at the above definitions communication can be said to be the transferring or transmitting of ideas, attitudes and information from one person to another. Okunna (1999) throws more light on the above assertion when she says “to communicate basically means to share ideas information, opinions, feelings or experiences between people?

According to Okunna (1999) the mass media perform a number of functions, which benefit the individual as a member of a society. She   goes on to say that these functions range from serious informational and educational functions   to lighter functions like entertainment

Mass media have been a major agent of socialisation and tool for  social change especially now that people depends on message from mass media. The potential power of the mass media help solve social problems. Television, Radio and Print Advertising can entice people to buy a wide range of products and services, newspaper messages and advertisement influence our ideas, values and behaviour.

According to conventional wisdom, it could be possible to use mass media to get people to act on behalf of their own health and well-being or to do right things. Based on this assumption, since World War II, the Federal, State and Local Government, private foundations and other non-governmental organizations have sponsored hundreds of public services campaigns to promote social rather than commercial “goods” (Delong & Winsten, 2000).

It is not surprising then that prevention advocates would look to the mass media as an important aid in addressing the problem of high-risk drinking in society. Some advocates have pushed for reform or other restrictions on alcohol advertising. Others have sought to influence entertainment producers to end the glorification of high-risk drinking in newspaper, magazine, television and in the movies (Montgomery, 2009). More recently, prevention advocates have produced a small number of media campaigns designed to change students and youth knowledge attitude and behaviour.

Most media campaign focused on college students drinking which have been campus based, using a mix of posters, flyers, electronic mail messages and college newspaper advertisement. More recently a few regional, state and national media campaigns have begin to address this issue as well.

However, the history of the human race has also been the history of drug abuse. In itself, the use of drugs does not constitute an evil. Drugs, properly administered, have been a medical blessing for example, herbs, roots, bark leaves and plants have been used to relieve pain and help control diseases. However, over the past few decades, the use of illegal drugs has spread at an unprecedented rate and has reached every part of the world. According to the United Nations Office on Drugs and Crime (UNODC) report (2005), some 200 millions people, or 5 percent of the total worlds population aged 15-64 have used drugs at least once in the last 12 months this implied 15 million people more than the 2004 estimated. The report goes on to say that, no nation has been immune to the devastating effects of drug abuse. According to the World Drugs Report (2005), the use of illicit drugs has increased throughout the world in recent years.

 

The report further states that a major world trend is the increasing availability of many kinds of drugs to an over widening socio-economic spectrum of consumers. The report argues that the main problem of drugs at global level continue to be opiates (notably heroine) followed by cocaine for example, for most of Europe and Asia, opiates continued to be the main problem drugs, accounting for 62 percent of all treatment in 2003. Reports from a total of 95 countries indicated that drugs seizures increased four-fold in 2003, and more than half of these were from Cannabis. A report released by the United Nations Drug Control Program (UNDCP) in 2004 estimated that 3.3 to 4.1 percent of global population consumes drugs, but more worrisome is that according to the UNDCP executive director, those who are hooked are the younger generation.

Every country in the world, developed or developing incurs substantial costs as a result of damages caused by substance abuse (World Drug Report, 2005). The world health organization (WHO), estimates that 1.1 billion people, representing a third of the world population above the age of 15 years, use tobacco principally in the form of the cigarettes. of these smokers, 800 million, 700 million of them males, live in developing countries (WHO, 2004). The solution described above is true in developed countries that have been experimenting with such drugs for a long period. However, developing countries are not exempted from the dangers all countries, Nigeria inclusive, are vulnerable. It has been noted that Nigeria is one of the developing countries in Africa that has lately been experiencing rapid increase in production, distribution and consumption of multiple drugs of dependence (Acuda and Tambo, 1983; World Health Organization, 1995, Daily Nation, March 2, 2006).

1.2       STATEMENT OF THE PROBLEM

Drug abuse has become rampant in our  society and this has  posed a problem because a society  filled with drug  addicts and drug dependents cannot move forward. A nation filled with people who misuse, abuse or are addicted to drugs will have  a high rate of increase in crime, prostitution etc. it also  makes way for  drug traffic kicking in the society. It constitutes  a major public health hazard and is a part of general  and  social disorganization we see around us that is, breeds comatose  patients, and various melody cases  that constitute  the urban  eyesore that dent the image of a nation. It contributes significantly to breakdown of law and  order and  establishment of various circles of abuses, deficiency, criminality and further abuse.

Drug abuse  has also  led to the diversion of scarce resources to cure addicts, and to rehabilitate them, building  of psychiatric  hospitals, breakdown  of societal norms and values, leading to up heavily, anarchy and other  vices in the society, posing  more problem than to be solved.

Such problems call for in-depth  research to help  salvage the situation   to avoid  the set back it created for our society and this has to be done with the help of the mass media in order to inform and educate  the people on what that  effects of drug  abuse can cause to the society, and to the people  involved .

 

1.3       OBJECTIVE OF THE STUDY

The overall purpose of this study in on assessment of mass media role in the campaign against drug abuse in Nigeria”

The specific objectives of the study are as follows;

  1. To examine the impact of mass media in creating awareness against drug abuse among Nigeria youth.
  2. To identify and evaluate strategies used among undergraduate to address drug abuse, their effectiveness and shortcomings.
  3. To examine whether media educate and enlighten the general public in drug abuse.
  4. To know if mass media awareness on drug abuse has reduced the unlawful use of drug in society.
  5. To examine if mass media present adequate information on effect of drug abuse to the people in society.

1.4       SIGNIFICANCE OF THE STUDY           

The significance of this study cannot be over-emphasized. Drug  abuse has been in the media   for a very long time and much has been written and government is worried  about it. Large amount of money are expended  to rehabilitate victims of  drug abuse. This research  is done in order to alert the society about drug abuse and the impact  it has to the society. And also to engage  the media  to be faithful allies to reap  the society off this problem. This is because a country with healthy  citizens will have  a good work force which in turn boosts  the economy of that country. This study will also show the people the work and part the mass media is playing to combat this problem.

1.5       RESEARCH QUESTION

The following are the research questions of the study;

  1. Has mass media awareness on drug abuse reduce the unlawful use of drug in the society?
  2. Do mass media educate and enlighten the general public on the bad effect of drugs abuse?
  3. Do Mass media promote drug abuse through advertisement and alcohol promo?
  4. Is there any problem facing mass media in creating awareness in drug abuse?
  5. What are effects of drug abuse in the society?

1.6 RESEARCH HYPOTHESIS

HO: Mass media do not play any significant role in creating awareness against drug abuse in Nigeria

HI: Mass media play a significant role in creating awareness against drug abuse in Nigeria

 

1.7       SCOPE OF THE STUDY

The study has been limited to mass media in Nigeria. The research focuses on the  assessment of mass media role in the campaign against drug abuse in Nigeria.

1.8       LIMITATION OF THE STUDY

Wide research of this nature cannot be carried out without some constrains, this constrains pose a lot of limitation to this work.

  1. Duration for the research work is relatively short
  2. Stress emanated form other academic activities is also another constrain.
  3. Financial constrain poses another challenges.

1.9       DEFINITION OF TERMS

CAMPAIGN : This means series  of planned activities with a particular social, commercial or political aim.

MASS MEDIA :This means the  means of communicating with large numbers of people.

DRUG : A substance  used as a medicine  or in a medicine.

ABUSE: This means a wrong or excessive use of something.

 

 

 

 

 

 

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