Economic analysis of cotton production in Adamawa State, Nigeria.

Abstract

Cotton production has long been a good contributor to the Gross Domestic Product of Nigeria and this sector provides employment for some of the country’s teeming population. Production dates back to the 1960s and 1970s. Poor management and the oil boom period reduced production of both lint and seed. Despite all these factors, production still continues on a small and medium scale among farmers. There is a new trend to revitalize the ailing cotton farming industries and associated business. To achieve this, an understanding of the production potential and economics of production were essential. One hundred and ninety-nine cotton outgrowers randomly selected among cotton farmers from the cotton belt of Adamawa state, Nigeria were interviewed to provide information on production capabilities, constraints and economics of production for duration of three years. Findings indicated that most of the outgrowers are male and married, and have had substantial experience in cotton production. They are registered with one cotton farmers association of their choice. Economic analysis of production cost indicated that of the variable cost of cotton production/hectare, labour alone accounted for 50% of the total. The regression analysis showed that the best fitted model is the double Log function; it recorded a coefficient of determination (R2) of 0.61. In cotton production the cost of land rent correlated negatively with the cost of ploughing and planting. It was evident from the survey that cotton production in Adamawa state is challenged largely by poor pricing. Fluctuation in the price and cotton yield was noticed during the survey period. The study recommends the provision of input at subsidized price, functional extension services and establishment of a cotton commodity board to stimulate cotton production. Key words: Cotton production, variable input, outgrowers, demographic studies, Adamawa state.