Economics of Leafy Vegetable Production

Abstract

It is necessary to develop methods to increase profitability of leafy vegetable production because it is the most important factor dictating flow of capital. An economic analysis of leafy vegetable production in Osun State, Nigeria, was carried to determine profitability of production. The study examined socioeconomic characteristics of respondents and analyzed costs and returns to leafy vegetable production. A total of 60 respondents were interviewed. Primary data were collected with a questionnaire and analyzed using descriptive statistics and enterprise budgetary analyses. Mean age of respondents was 38 years and average household size was 5. The mode level of education was secondary. The mean years of experience was 11 and the mode farm size was between 0.01 and 0.4 ha. Gross margin and net profit were 91,161 and 82,441 (, naira, Nigerian currency, 157 = US$1), indicating that leafy vegetable production was profitable. Profitability, using profit margin analysis, was 62.8%, the benefit–cost ratio was 2.7, return per naira outlay was 1.7 and the operating expense ratio was 30.5%, indicating that there is room for improvement in leafy vegetable production.