Economic Efficiency of Organic Farming Adoption by Cocoa Farmers in Southwest, Nigeria

Abstract

The study was carried out in southwest, Nigeria. The main objective of the study was to determine the level and efficiency of organic farming technology among cocoa farmers in southwest Nigeria. The study ascertained the level of organic farming adoption among cocoa farmers; determined the technical, allocative and economic efficiencies. These were with a view to determining the profitability and efficiencies of organic cocoa farming in Southwest, Nigeria. Primary data were collected from 300 organic cocoa farmers in the study area through multi-stage sampling technique. The data obtained included socio-economic characteristics, level of adoption as well as efficiencies of organic cocoa farmers. Data were analyzed using descriptive statistics, technology adoption index and endogeneity corrected stochastic frontier production function. Results from descriptive analysis showed that the average age of organic cocoa farmers was 52±14.02 years while the average years of schooling was 10±8.72 years. Majority of the farmers were married (85.7%) with average farming experience of 4 years. The results showed that farmers adopted 4 out of 12 organic cocoa farming practices, 39% of organic cocoa farmers were full adopters while 61% were partial adopters. The overall estimated technical, allocative and economic efficiencies for the organic cocoa farmers ranged from a minimum of 0.13, 0.20, and 0.17 to a maximum of 0.94, 0.96 and 0.94 respectively. However, the estimated technical, allocative and economic efficiencies for full adopters ranged from a minimum of 0.44, 0.47 and 0.49 to a maximum of 0.94, 0.96 and 0.94 while partial adopters ranged from 0.13, 0.20 and 0.17 to maximum of 0.92, 0.90 and 0.90 at (p<0.01) respectively. The study concluded that efficiency of organic cocoa farmers was influenced by use of organic fertilizer, frequency of weeding and labour in man-days.