Economic analysis of plantain production in Afijio Local Government Oyo State, Nigeria

Abstract

The study was carried out to investigate the economic analysis of plantain production in Afijio Local Government Oyo State, Nigeria. Multi – stage sampling technique was used in the data collection. A total of 150 respondents were sampled. Statistical tools such as frequency distribution, production function and budgetary analysis were used in analyzing the data for this study. The result shows that most of the respondents were male (93.3.0 %) and married (76.70%). The major problems faced by the respondents in the study area include inadequate credit facilities, problems of pest and disease and inadequate farm land. The estimated costs and return of plantain growers cultivating one hectare on the average in the zone were  ₦ 134,860.00 and  ₦ 482,000.00 per annum, respectively. The operating cash expenses ratio was 23.57%, which connotes that 23.57 % of the gross revenue was used to cover the operating expenses. The regression analysis reveals that double function had the F-ratio that was significant at 10 % α – level and based on the statistical and econometric theories, the double log function was chosen as the lead equation with coefficient of multiple determinations (R²) value of 0.88, which implies that 88.09 % of variables is allocated to the explanatory variables.

Keywords: Plantain, Production, Gross margin, Budgetary