ECONOMIC ANALYSIS OF KOLANUT PRODUCTION IN ONDO STATE, NIGERIA.

Abstract

The study was carried out to quantitatively analyze the economic analysis of Kolanut farming in Odigbo, Ifedore and Akure North, Local Government area of Ondo State, Nigeria. Specifically, characteristics the study examined the socio- economic of the farmers and also looked at the influence of some or these factors 011 the technical efficiency. It estimated and analyzed the profitability of kolanut production and resource- use efficiency of variables involved in Kolanut production. Primary and secondary data were employed ill the study: for the primary data, (50 Kolanut farmers were sampled using multistage random sampling technique. Data were collected with a set structured questionnaire assisted with interview schedule. The analytical techniques used in the study include descriptive statistics, Gross Margin and Stochastic Frontier Production Function analysis. The results of the socio- economic characteristics indicated that majority of the Kolanut farmers were male. In terms of educational distribution, the result showed that 77 percent of the farmers had either primary or no formal education. Also. the result showed that 62 percent of the farmers were involved solely in agricultural production. from the Gross Margin analysis, Kolanut production was found to be profitable judged by the positive mean value of the Gross Margin of #100,769.58. The result of the Stochastic Frontier Production Function analysis showed that the elasticity of production of {number of kola trees, Iabour and cost of chemicaI (#) had positive sign while that of age of Kola trees and farm distance had negative sign. Variables with positive elasticity of production increased kolanut output while those with negative elasticity of production decreased kolanut output. the result of the analysis also indicated that there were pressure of technical inefficiency effects in kolanut production in the study area.