Economic analysis of risks in fruit and vegetable farming in Osun state, Nigeria

Type Journal Article - Bangladesh Journal of Agricultural Research
Title Economic analysis of risks in fruit and vegetable farming in Osun state, Nigeria
Volume 37
Issue 3
Publication (Day/Month/Year) 2012
Page numbers 473-491
The study analyzed the risks involved in fruit and vegetable farming in Osun
state, Nigeria. Specifically, the study examined the risk attitude of farmers,
factors influencing risk attitude as well as farmer’s perception on major sources
of production and market risks. The study was based on a survey of 150 farmers,
comprising 75 predominantly fruit and vegetable farmers, respectively, and
covering 12 communities within the six agro-ecological zones in the state. Data
were collected using a well structured questionnaire. Descriptive statistics,
discriminant analysis and Kruskal–Wallis ranking analysis were used in the
study. The study revealed that the average age of the fruit and vegetable
respondent was 58.5 and 40.1, respectively, with the male respondents
outnumbering the females in each case. The average year of experience was 30.8
and 15.3 for fruit and vegetable respondent, respectively. An average area of
(5.36 and 2.21) ha was cultivated by the fruit and vegetable farmers, while
orange and okra are the most widely grown fruit and vegetable crops. Damage
by pest and disease, traditional methods of farming and weather dependency
were the most perceived sources of production risk by the fruit and vegetable
farmers. Perishability of produce, low price of produce, poor product handling
and packaging as well as exploitation by middlemen were the most perceived
sources of market risk. The study also revealed that maintaining good
relationship with traders, selling at low prices due to perishability, selling within
the locality and non-farm businesses were the major risk management strategies
employed by the farmers. Based on the study findings, it is recommended that
introduction of a more comprehensive agricultural insurance scheme and
introduction of improved technology can ameliorate the effect of risks on fruit
and vegetable farmers. Also, public intervention can facilitate better risk
management through improved information system.

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