The study examined costs and returns in cocoa production in Cross River State by comparing three identified management systems of cocoa production in the area. A two-stage sampling procedure was used to select a hundred and fifty cocoa farmers for the study. Data used in the study were collected using structured questionnaires which were administered by the Agricultural Development Programme (ADP) extension agents using the participatory approach while the data were analysed using descriptive statistics such as mean, median, standard deviation, etc. and an investment decision model comprising the net present value (NPV) and benefit-cost ratio (BCR) analysis. Results show that the respondents were predominantly small scale farmers with farm sizes ranging from one to five hectares. The age distribution of the farmers showed that 61.3% of them were among the active farming population falling within the age range of 21 to 40 years, and 16.67% of the respondents had no formal education. More than 50% of the total respondents sourced funds from their personal savings in all the management systems considered. Importantly, the study found that cocoa production is a profitable business irrespective of management system, since all of the management systems had positive net present values (NPV) at 10% discount rate. The NPV for lease-managed farms is highest. The benefit-cost ratio (BCR) at 10% discount rate was greater than one for all the three management systems, which indicates that the returns from cocoa production are high. Owner-managed farms had the highest BCR followed by lease-managed farms and sharecropped farms in that order. Lease-managed farms were more viable compared with other management systems in terms of their high NPVs. The study recommends that given the high benefits relative to costs involved in cocoa production irrespective of management system, investments in cocoa production can be increased by providing expanded access to cheap and flexible credit and land, which have presented as limiting factors in cocoa production based on the descriptive statistical analysis in the study.
The main objective of this study is to examine the effect of monetary aggregates of demand and supply on domestic cocoa absorption in the country. Data from 1970-2000 were obtained from official sources including the Central Bank of Nigeria (CBN) Annual Reports and Statistical Bulletins and the Statistical Database of the Food and Agriculture organization (FAO) of the United Nations, among others. While the semi-log functional form was used (as the lead equation) to estimate the aggregate demand and supply models, the exponential form was preferred for the agricultural domestic absorption model. Both models used the adaptive Nerlovian partial adjustment mechanism. Domestic price level was identified to affect cocoa absorption negatively and significantly while exchange rate depreciation had a significant and positive effect. Real income was found to affect money demand by 4.4 percent in the short run and 24 percent in the long run. On the strength of these findings, the study recommends policies towards a lowering of interest rate and the rate of inflation now and the streamlining of the existing extension service programmes to include provision of easy access to inputs for farmers so as to increase cocoa supply.
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