AN ANALYSIS OF YIELDS OF KOLA-NUT PRODUCTION, PROCESSING AND MARKETING IN SAGAMU LGA, OGUN STATE, NIGERIA

Abstract

This study on Kola nut production in Ogun State was aimed at describing the socio-economic characteristics of the farmers, net farm income, marketing channels and factors influencing output of kola nut for its impact on food security. Multistage sampling technique was used in the study; the first stage involves the purposive selection of Sagamu Local Government as largest Kola nut farming with 4 communities; namely; Agbowa; Sagamu; Igodo, and Odelemo. The second stage involves simple random selection of 100 kola nut farmers, 25 per community. A structured questionnaire was administered subject to descriptive analysis, multiple regressions, and budgetary analysis. The results revealed that male 82% and female 18% were involved in kola nut production, processing and marketing. Average household size of 6 members with a minimum of 25 years farming experiences. The study revealed that 51% of the farmers sold directly to wholesalers, 37% sold to processors, and 12% sold to retailers. Also, 83%, of the producers and marketers were married 16% were widowed and only 1% divorced. Average age was 58years and average farm size of 2.71 hectares. Average farm net income was ₦208,680.40 per annum with the total revenue of ₦291,149 and a gross margin of ₦237,789.50 per annum. The average total cost incurred was calculated as ₦82,468.40 being cost of labour, transportation and items such as cutlass, hoes and files. Regression analysis used to determine the factors affecting the output of kola nut showed that farm size, age of kola nut plantation and the age of farmers were significant at 10%, 5% and 1% respectively using double log equation and the model was significant at 1%. The age of farmers (x1) was negatively significant which implies that as farmers reach old age, this may serve as hindrance due to physical inability to undertake vigorous farm activities hence reduction in output occurs by 13.3%. Farming experience (x2) was negatively correlated with output of kolanut indicating that a unit increase in experience of kolanut farmers will decrease output by 12.3%. Farm size was found to positively significant which implies that a unit increase in farm size will increase output by 83.1%.The result revealed that kola nut business is a profitable venture and male dominated. The women could be encouraged to invest in the business to increase their income and livelihood.