Profitability and Production Effieciency of Indigenous Tomato Cultivation among Farmers in Osun State, Nigeria

Abstract

This study aimed at determining the profitability and production efficiency of indigenous tomatoes cultivation among farmers in Osun State, Nigeria. A multistage sampling technique was used to select respondents for the study. The first stage involved a purposive selection of a local government based on the volume of total production of tomato from this area. The second stage involves random selection of six communities within the local government and this is followed by random selection of twenty respondents from each of the selected communities with the aid of structured questionnaire. Analysis of the data was based on 111questionnaire because 9 were discarded as a result of inconsistency. Based on the objective of the study, descriptive analysis, regression analysis and gross margin estimate were employed. The findings revealed that male dominated tomato farming in the study area and farming is the major occupation of the respondents. They were married and educated. They mainly derived the source of their funding from owners equity and obtained their land by rent, majority do not have extension contact and obtain from local market the seed used as planting material. The scale of operation is small and utilized both family and hired labour. The variables such as marital status, farming experience and transplanting of seedlings as methods of planting were statistically significant at 1% level. The net farm income was estimated to be #439,500 indicating that tomato production is profitable in the study area. Also the cost benefit ratio is found to be 1.84 and the rate of return was found to be 0.83 implying that for every one naira invested in tomato, a profit of 83 kobo is realizable. Finally, capital is the major constraint facing the farmers as reported by 65.8% of the respondents. Among the recommendations include that extension agents should be provided and be sent to assist farmers in bridging information gap between research stations and the farmers as regard new innovations on the farm and the farmers should be encouraged to form cooperatives to enhance their access to credit facilities.