Contribution of Mushroom Production to Rural Income Generation in Oyo State, Nigeria

Abstract

The study examined the economics of mushroom production in Oyo State. Data for the study were obtained from Ido, Surulere Local Government Area and Akinyele Local Government Area. A total of 202 respondents were selected for the study area. The data were analysed using descriptive statistics and costs-returns analysis. The result shows that majority (71.7%) of mushroom farmers are within 31 - 50 years of age. Majority (67%) of the farmers was male and married (79.2%). Furthermore, about all (95.0%) of the farmers had <1-5 years of experience in mushroom production. The costs-returns analysis revealed that mushroom production is a profitable venture. Profitability indices indicate that for every N1 of sales made, 32kobo profit is realized (ROS). RRI values shows that every N1 invested in mushroom production yields 49kobo in returns and every N1 spent on variable cost leads to 79kobo gain for the farmer. These results clearly show that mushroom production is profitable in all ramifications and should therefore be encouraged and financially supported for large scale production. The study therefore recommends articulation of sound policy by government to cater for financial inclusion and export oriented markets for mushroom. This will drive employment creation, poverty alleviation and increase in foreign earnings for the country.