Assessment of the Cost-returns and Profitability Patterns of Tomato Production in Yamaltu-Deba Local Government Area of Gombe State, Nigeria

Abstract

The study examined profitability of tomato production in Yamaltu-Deba Local Government Area of Gombe State. A three-stage sampling technique was used to select 96 tomato producers. Data were collected using a structured questionnaire and were analysed using descriptive statistics, farm budget model, and t-test analysis. The results revealed that, the mean age of tomato producers was 38.94 years, 92.48% were males, 71.56% were married with the majority (95.44%) had family size ranging from 1 – 6 persons, and had 6.55 mean years of farming experience, having an average of 0.6 ha farm size holding. Furthermore, the result revealed that only 8.74% that have attained tertiary education. The results also revealed average variable costs constituted 88.98% and 88.84% of the average total costs of production in the dry and rainy seasons respectively. The per hectare average net income realised were found to be ₦ 154,444.20 ($ 398.05) and ₦ 39,725.14 ($ 102.38) in the dry and rainy seasons respectively. Hence, the returns per naira invested was ₦ 0.67 ($0.00173) in dry season and ₦ 0.18 ($0.00046) in rainy season (P<0.05). Moreover, the results revealed positive and desirable gross and operating ratios of < 1; implying the tomato farms in the study area maintained profitability levels both in the short and long run. However, inadequate capital was critical; which was attributed to lack of affordable sources of credits. Lack of storage and processing facilities were among the impediments to large scale tomato production in the study area. However, improvement in the existing patterns and as well as the provision of adequate essential factors of production will help expand the present scale of operations. Therefore, governments and other financial institutions should do more to provide soft loans to the farmers to improve efficiency.