ECONOMICS OF SIZE IN IRRIGATED TOMATO (Lycopersicum esculentum Mill) PRODUCTION UNDER KANO RIVER IRRIGATION PROJECT (KRIP) PHASE I, KANO STATE, NIGERIA

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ECONOMICS OF SIZE IN IRRIGATED TOMATO (Lycopersicum esculentum Mill) PRODUCTION UNDER KANO RIVER IRRIGATION PROJECT (KRIP) PHASE I, KANO STATE, NIGERIA

Abstract:

The broad objective of the study was to examine the economics of size in irrigated tomato production under Kano river irrigation project (KRIP) phase I, Kano state, Nigeria. Primary data were collected from 213 irrigated tomato farmers, using multi-stage sampling techniques in three local government areas covered by KRIP. Data were collected during the 2014/2015 irrigation farming season using well-structured questionnaire. Data collected were analysed using descriptive statistics, budgeting techniques, two-stage data envelopment analysis (DEA) and regression models. The result indicates that majority (53%) of the irrigated tomato farmers were in their active years and approximately 57% had some form of formal education. Majority of the farmers( 93%) had been in tomato production for 8 to 31 years and 71% of the farmers had less than 1.0 hectare of farmland. Majority of farmers (78%) had no contact with extension workers while 76% used personal savings for production. It was found that only seed was over-utilised by medium and large scale farmers with average usage of seed above recommended rate resulting to output far below the potential yield of 40tonnes/ha. Irrigated tomato production was found to be profitable with an estimated total cost of ₦89,935.60/ha, ₦115,171.80/ha and ₦135,575.80/ha for small, medium and large farms respectively, and a gross margin of ₦135,040.90, ₦169,257.00 and ₦207,027.40 for small, medium and large farms respectively. The irrigated tomato production was profitable among the three sizes of production but more profitable in the large farms with the highest returns of 85 kobo for every ₦1 invested. The study found that most of the farms irrespective of size of holding have some technical inefficiency problems. The medium farmers, in terms of Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS), had the best measures of technical efficiency 13.6% and 72.7% compared to 16.5% and 21.2% for small farms and 27.3% and 45.5% for large farms. Though large farms have been found efficient, with higher yields (6750kg/ha), it is the medium and large scale farms that emerged as farms with price-efficiency in terms of higher unit profit (0.43) respectively. Findings further revealed that none of the sampled irrigated tomato farmer reached the frontier threshold. However, the average economic efficiency of the irrigated tomato farms was 67%. The mean technical efficiency was 85%. This indicates that irrigated tomato farms were economically inefficient. Also, factors such as age, household size, farming experience, sources of finance, sex and cooperative society were responsible for 59% total variation in technical efficiency among the three categories of irrigated tomato farms. Majority of the irrigated tomato farmers complained of poor output price as the foremost constraint faced. It was therefore recommended that farmers should form a production clusters through the formation of producer groups or cooperatives with an advisory committee trained in various aspects of marketing to have access to up-dated pricing information and make it available to farmers on time this could improve their market intelligence and controlled irrigated tomato production per season.

ECONOMICS OF SIZE IN IRRIGATED TOMATO (Lycopersicum esculentum Mill) PRODUCTION UNDER KANO RIVER IRRIGATION PROJECT (KRIP) PHASE I, KANO STATE, NIGERIA

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