Economic Analysis of Cassava Maize Production In Abeokuta

Olatunji Paul MAJEKODUNMI
Agricultural Economics and Farm Management, Federal University of Agriculture, Abeokuta
February, 2003
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Abstract

This research study investigated the economic returns of cassava-maize production in Abeokuta. Primary data were used and these were simple randomly collected from 90 respondents by the use of structured questionnaire in the study area. The descriptive statistics, gross margin analysis and regression models were used to achieve the specific objectives of the study.
The study revealed that the average age of the farmers was 43 years and at least 41 percent of the farmers acquired primary education.
The labour cost was the major item constituting 60.5 percent of the total cost items. This finding suggests that the farmers should reduce the labour cost in order to maximize profit.
The result also showed that a total gross margin of #12007 per hectare and a net income of #9823 per hectare were realized by the cassava-maize farmers.
The regression analysis result showed that area of land cultivated and hired labour had positive and significant linear relationship with the value of cassava-maize output while family labour showed negative and significant linear relationship with the output. The plane materials and fertilizer used were not statistically significant.
The five explanatory variables accounted for about 71 percent of variation in the dependant variable. The study concluded that cassava-maize production is profitable in the study area.
The study, therefore, recommends. Provision of tractor hiring service at affordable rate, implementation of relevant agricultural policies by government and intensification of the services of agricultural extension agents in the study area.