Comparative Analysis Of Owner Managed And Lease Managed System Of Cocoa Production In Ekiti State Nigeria.

Abstract

This paper examines the comparative study of Owner managed and Lease managed system of cocoa production in Ekiti state, Nigeria. Through a multistage sampling technique, one hundred and twenty (120) respondents were interviewed and data collected with the aid of a well structured questionnaire. Data were analysed with Descriptive Statistics, Probit Regression Analysis and Budgetary techniques. The respondents are basically farmers with high involvement in cocoa plantation. The result of the descriptive statistic shows that majority of the respondents are Male (90.2%) while 9.8%of the respondents are Female, the respondents are between the age of 20 -82 years with a mean age of 56 years, 90.8% of the respondents are married while only 9.2% are single, the average household size is 7. About 43% have no formal education. The average farm holding is 3 hectare which signifies that majority of the respondents operates at the subsistence level. Majority of the respondents (55.8%) used family labour. The average farming experience of the respondents is 17 years, and most of the respondents (54.1%) make use of personal savings as their source of capital . The fixed cost and the operating cost are significant at 10% and 5% level of significant respectively, this significance however differentiate the two management systems adopted. Gross Margin (GM) for Owner and Lease managed system of production are ₦132,890.80 and ₦106,533.35 respectively, the Economic Efficiency (EE) which is also known as the Rate of Return (ROR) for Owner and Lease managed are 0.55 and 0.63, the Benefit Cost Ratio (BCR) for Owner and Lease managed are 2.19 and 1.85 respectively indicating that the two management system are efficient and profitable since the BCR is greater than 1 and the Gross Ratio (GR) for Owner and Lease managed system of cocoa production are 0.46 and 1.85 respectively.