Competitiveness of pineapple production in Osun State, Nigeria

Type Journal Article - Journal of Economics and Sustainable Development
Title Competitiveness of pineapple production in Osun State, Nigeria
Volume 5
Issue 2
Publication (Day/Month/Year) 2014
Page numbers 205-214
Pineapple has encouraging potentials for economic development in the country. However, there are little
empirical evidences on the Competitiveness and Effect of Government Policies on the commodity. The study
therefore assessed the Competitiveness of Pineapple Production in Osun state, Nigeria. A Multistage sampling
technique was used in selecting 120 respondents within the study area. The study utilized both primary and
secondary data. Data were analyzed using descriptive statistics and Policy Analysis Matrix (PAM). Results
revealed that 58.3% of the producers used sucker technique in pineapple production while 46.2% used crown
technique. PAM results revealed that the crown and sucker production techniques were privately (N550, 438/ha
and N679, 138/ha) and socially profitable (N730, 228/ha and N841, 828/ha) with Sucker production technique
having higher competitiveness. Nominal Protection on Input and Output and the Effective Protection
Coefficients for the two production systems indicated presence of tax and the producers were not protected by
policy. Subsidy Ratio to Producer (SRP) value obtained for crown (-0.16) and sucker (-0.14) techniques and
Producer Subsidy Estimate (PSE) value of -0.18 was obtained for Crown and sucker (-0.15) techniques
indicating pineapple producers’ income were transferred to consumers and taxpayers which further confirmed
that Pineapple production was taxed by policy. Sensitivity analysis indicated that increase in Free On Board
(FOB) price; Farm gate price, Yield and Exchange rate at 20% improved Competitiveness and Comparative
advantage of Pineapple production. The study recommends provision of incentive structures that will protect
pineapple producers.

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