Economic impacts of fertilizer micro-dosing in the production of underutilized indigenous vegetables in south west Nigeria: an ex-ante approach

Abstract

Optimum application of fertilizers to address low productivity of soils and reduce the quantity and the cost of fertilizer incurred by farmers is a major concern in enhancing the yield of underutilized indigenous vegetables (UIVs). This study analyzed the potential economic potential benefits of adoption of fertilizer micro-dosing by resource poor farming households in southwest Nigeria using primary and secondary data from baseline survey of farmers, consumers and scientists involved in UIV production in the study area. Using economic surplus model, the size and distribution of potential economic benefits of the innovation were determined quantitatively as producer and consumer surplus in a partial equilibrium framework. Both net returns and sensitivity analyses were also conducted to assess the stability of the results. Investment in the innovation in production of the UIVs is economically viable with 32-50% returns achieved at expected adoption rate of 25%. Sensitivity analysis shows that the results were robust to changes in basic parameters. Farmers and consumers of UIVs benefit from the innovation due to the reduction in the cost of fertilizer used as well as price of UIVs, respectively. The findings support the sustainability of investment in fertilizer micro-dosing in producing UIVs.