Welfare transitions and its correlates among cocoa farming households in Nigeria

Abstract

This study determined the correlates of welfare using panel data collected in heavy and light cocoa seasons through multistage sampling techniques from 366 cocoa farming households. Data collected were subjected to descriptive and Ordered Probit model of analysis using STATA. Welfare categories were based on the relative poverty line constructed from the mean per capita household expenditure for each season. Results revealed that male-headed households were more among the cocoa farming households, with mean age of 54 ±12.64 years, household size of 7 ±3.19 persons, farming experience 28 ± 14.41 years and mean age of the cocoa trees were 30 ± 19.21 years and this shows that the farmers and their cocoa trees are old, there by affecting the productivity and the welfare of the farmers. The ordered probit result corroborates this results because age of household head (p<0.5), gender of household head (p<0.1), age of cocoa (p<0.1), poor access to credit (p<0.1), poor collateral status (p<0.01) and high tax levies (p<0.5) on cocoa production negatively affects welfare of Cocoa Farming Households while literacy (p<0.1), type of land tenure system used on cocoa farm (p<0.01), price increase of produce (p<0.01), access to extension service and good harvest from plantations (p<0.01) enhanced cocoa farming households' welfare.

Keywords: Welfare transition, cocoa seasons, ordered Probit and Nigeria