Green Global
Foundation   Journal
...an emerging window for scientific research and publication across the globe

ECONOMIC ANALYSIS OF KOLANUT PRODUCTION IN OSUN STATE, NIGERIA (Pages : 12 - 15)

The extent of profit in any enterprise determines the sustainability of such an enterprise. Therefore this study determines the extent of profit (or otherwise) that could be generated in kolanut production in the study area. The study was carried out in Osun State, Nigeria between June and July 2007. Structured questionnaire was used to collect information from kola farmers and the data collected was analyzed using Budgetary Analysis as well as Ordinary Least Square (OLS) Regression Analysis. The result of budgetary analysis shows that the proportion of the net income to the total cost was 32.9% showing that the enterprise was profitable. Regression analysis shows that the level of revenue derivable from kolanut production in the study area is critically determined by the cost of weeding (P<0.01), cost of chemical application (P<0.05), cost of harvesting (P<0.05), cost of on-farm processing (P<0.05) and cost of transportation (P<0.01). The study recommended that government and non-governmental organizations (NGOs) should assist farmers by providing soft loans to the farmers. Also, farmers should organize themselves into cooperative societies, as this will help them to get financial assistance from government.Download