FARM CHARACTERISTICS, PROFITABILITY AND EFFICIENCY IN RESOURCE USE AMONG COCOA FARMERS IN OSUN STATE, NIGERIA

Cocoa is an important cash crop in Nigeria with great potentials both in terms of employment and foreign exchange earnings. This study analysed the profitability and resource use efficiency in cocoa production in Osun State. Sixty (60) cocoa farmers were randomly selected and data were collected on farm characteristics, inputs, output and market prices. Descriptive statistics, budgeting and efficiency analysis were the analytical techniques adopted. Results indicate that the majority of farmers (73%) cultivated farm size of less than 2 ha, with 23% only planted to cocoa. Most cocoa trees had less than 30 years of age, comprising high yielding hybrid varieties only or in combination with old varieties. Cocoa production is profitable with a rate of return of 1.67. The age of cocoa trees had influence on yield, profit and rate of return to cocoa farm, with optimum values achieved between 16 and 30 years. Current farm size, yield and age of trees were below optimum. In terms of resource use, only chemical inputs were utilized efficiently. It is recommended that farmers should increase investment on cocoa farms including size and adopt more of the high yielding varieties of cocoa to improve output.