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ECONOMIC ANALYSIS OF ORANGE FLESHED SWEET POTATO IN FCT
1.1 Background of the study
At independence in 1960, agriculture stood out as the most important sector of Nigeria’s economy in several respects. It employed over eighty percent (80%) of the nation’s workforce, served as the most important foreign exchange earner and constituted a major source of Government revenue (CBN, 2000).Given the vastness of the country and its diverse climatic and soil conditions, a wide variety of crops are grown for industrial use, exports as well as domestic consumption. The nation’s agricultural production is still largely in the hands of the small scale farmers who are said to account for ninety five percent [95%] of the total agricultural production (Adesimi A.A.1997). At present, there are a relatively large
abundance of undeveloped resources and resources being utilized at a low level of productivity, which if tapped and used effectively would result in large increases in production and thus enabling Nigeria not only to feed herself but also solving the world’s food problem.
One serious problem facing Nigeria today is chronic and transitory food insecurity (World Bank, 1998).The contribution of agriculture to Gross Domestic Product (GDP) which was 65% on the average in the 60’s dropped to 22.4% between 1976 and 1980. Even though it rose to 29.2% in the year 2001, it dropped further to 22% in 2014 (CBN, 2014). Although Gana (1990) described Nigeria as a food insecure country, the food problem which started in the mid 1960’s, (Ojo, 1995) has continued to deepen, several decades after independence (Adesina, 1997). Opinions may differ on the magnitude but the nature of Nigeria’s food problem has never been in doubt. At the national level, the main food problems are food supply deficits, poverty and uneven distribution of income in terms of ability to buy food. On the economic front inadequate food has resulted in reduced export earnings, large food imports, small revenue for Government, shortage of raw materials for processing industries and increased inflationary pressure (Ojo, 1995).
Sweet potato (Ipomea Batatas) has tremendous potentials to be an efficient and economic source of energy within Sub Saharan Africa. It is the third most important root and tuber crop after cassava (Manihot Esculenta) and yam (Dioscorea specie). Both root and leaves are good source of pro vitamin A, vitamin B, vitamin C, Calcium, Iron, Potassium and sodium with a small amount of protein in both root and leaves (Woolfe, 1992).
Despite the importance of sweet potato, as stated above, it is considered a minor crop in terms of production and consumption in Nigeria. Of the estimated 200,000 million tones of all root and tubers produced in Nigeria annually, from 2003 to 2005 sweet potato contributed only 0.13% (Horton, 2008). In addition to the little emphasis placed on the crop, average yield under local conditions in the country is four tones. This is extremely low when compared to other countries such as China were as much as 12 tonnes per hectare have been obtained through the use of similar labour intensive and modern technology system (Woolfe, 2002).
The poor output realized by farmers may be an indication that resources needed in the production of the crop are not being used at their optimal levels. The relatively little emphasis laid by farmers on the crop raises the question as to whether it is profitable to grow the crop or not. This situation calls for an assessment of the resources needed for its production and how these resources are managed by its cultivators. This vital information which is lacking at the moment has created a vacuum which this research has the main objective of filling. The major objective of this study is to estimate the production function for sweet potato and to determine the profitability from sweet potato production in the study area. The paper has been structure into five sections: section one is the general introduction of the research topic, the second section deal with the literature review and theoretical framework. Research methodology in the third section, presentation of results and analysis in section four and section five is the conclusions and recommendations.
1.2 Statement of the problem
There have been researches on the economic analysis of orange fleshed sweet potatoes. This work gives further information on the economic analysis of orange fleshed sweet potato in fct
1.3 Objectives of the study
1. To understand the impact of economic analysis of orange fleshed potato on the production effectiveness of orange fleshed potato
2. To understand the impact of the cultivation of orange fleshed potato on the socio-economic development of the agro-industry in fct
3. To understand the relationship between the economic analysis, and cultivation of orange fleshed sweet potato and socio-economic development in fct
1.4 Research questions
1. What is the impact of economic analysis of orange fleshed potato on the production effectiveness of orange fleshed potato
2. What is the impact of the cultivation of orange fleshed potato on the socio-economic development of the agro-industry in fct
3. What is the relationship between the economic analysis, and cultivation of orange fleshed sweet potato and socio-economic development in fct
H0: There is no relationship between the economic analysis, and cultivation of orange fleshed sweet potato and socio-economic development in fct
H1: There is a relationship between the economic analysis, and cultivation of orange fleshed sweet potato and socio-economic development in fct
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