Abstract
This study examines the costs, returns and productivity due to fungicide use in cocoa production under the Structural Adjustment Programme (SAP) in South Western Nigeria. Budgetary (gross margins) and production function analyses are the techniques used to analyze the primary data derived from a sample survey of cocoa farmers in Osun and Ondo States of Nigeria. The data were analysed to provide estimates of economic benefits of fungicide use. The study shows that net returns to fungicide use are positive. Fungicides are efficiently utilized by the respondents. However, the efficiency of use varies from one state to the other. It is higher amongst growers in Osun than those in Ondo State but the use rate of fungicide may be increased without any adverse economic consequences in both states.
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