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EFFECTS OF GROUP FORMATION ON RICE PRODUCTION IN EKITI AND OGUN STATES, NIGERIA C. A. Afolami; A. E. Obayelu; M. U. Agbonlahor and O. Adebowale-Lawal.

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Presentation on theme: "EFFECTS OF GROUP FORMATION ON RICE PRODUCTION IN EKITI AND OGUN STATES, NIGERIA C. A. Afolami; A. E. Obayelu; M. U. Agbonlahor and O. Adebowale-Lawal."— Presentation transcript:

1 EFFECTS OF GROUP FORMATION ON RICE PRODUCTION IN EKITI AND OGUN STATES, NIGERIA C. A. Afolami; A. E. Obayelu; M. U. Agbonlahor and O. Adebowale-Lawal

2 Introduction Nigerian Rice Economy Nigerians eat about 5.4 million metric tons of rice worth $4 billion annually. Over 3.3 million metric tons of that is imported, making Nigeria the largest net importer of rice on the African continent and the second largest importer in the world

3 Nigeria has suitable ecologies for rice production, however, rice production has not kept pace with local demand. Rice cultivation in the country is: highly labour intensive small-scale of production dispersed farm holdings and low resources capacities of farmers. Average national yield of rice is 1.47tons/ha Compared to the potential yield for the various agrozones are - Irrigated: 6.4tons/ha - Rainfed lowland 3.7tons/ha - Upland 2.8tons/ha

4 Rice challenges Trend Indicators Production (million tons) Import (million tons) Self-reliant ratio(import/pdn ) Total Consumption (million tons) Per capita consumption(Kg)

5 The rice challenges cont. Rice has become a strategic commodity in the Nigerian economy Government has actively interfered in the Nigerian rice economy over the last thirty years. Policy has not been consistent. It has included oscillating import tariffs and import restrictions. For instance: to the mid-1990s imports were illegal imports were allowed at a 100% tariff the tariff was reduced to 50% but increased to 85% in The erratic policy reflects the dilemma of securing cheap rice for consumers and a fair price for producers.

6 Research challenge We recognize: The critical importance of the small-holder farmer in ensuring food and agricultural security in Nigeria- That the rice production system is characterized by: the use of labour intensive production technologies high post harvest losses unavailability of appropriate processing and value adding technologies Poor linkage of production to demand and lack of market information to guide producers in making sound decisions as well as problem of pest Also, we know that: Improving smallholder farmers access to agricultural services has been a central policy target and challenge facing governments in Nigeria

7 Research Challenge Farm cooperative societies -groups that seeks to promote members socio- economic welfare through members - participation in activities that broaden their local economies-of-scale -reducing transaction costs -strengthen the market and bargaining power of the farmers, and -enhance their access to support services from government and donor agencies.

8 Research challenge Against the backdrop of increasing import bill, low local production and a high demand, cooperatives were encouraged and formed as a viable option to revert the trend. The study therefore seeks to assess the impact of rice cooperative in raising the income of the farmers through facilitating access to agricultural inputs.

9 Study Objectives Specifically, the objectives were to: investigate various government policies and programmes affecting rice production in Nigeria examine the trends of rice production in Nigeria, Ogun and Ekiti States examine the nature and degree of group formation among rice farmers in the study areas determine the effect of group formation and other factors on rice production in the study area describe the obstacles militating against group formation system by rice farmers.

10 Methodology Adopted Study Areas: Ekiti and Ogun states Sampling technique: Multistage sampling procedure was used to select a total of 310 rice farmers (207 from Ogun and 103 from Ekiti). Data Collected: rice production, socioeconomic characteristics, as well cooperative activities were elicited from the respondents. Data Analysis: descriptive and inferential statistics used in line with study objectives.

11 Results Average farm size cultivated = 1.71ha Average age of the farmers = 48 years Majority (92%) of the farmers produces upland rice, with a single harvest per year Mainly owned resources are used. Family labour is the most important source of farm labour in rice cultivation About 60% of the members of the farm families participate in the family rice farm. About 71% of rice farmers are members of rice farmers cooperative.

12 Results… Farm size cultivated was found to be 1.13ha and 1.72ha for cooperative members and non- members respectively. Rice farmers that are members of cooperative earned higher profits compared to non members. The profit realized was N423244/ha and N367569/ha for members and non- members respectively.

13 Results… The probit model was used to predict how cooperative membership affected rice production activities. – Result showed that cooperative membership did not have any significant effect on rice yield and profit Significant factors that encourages rice farmers cooperative membership are: – Household size, no of rice farms, level of output and extension access

14 Results… Disaggregated by state: It was found that sex of farmer, household members involvement, level of production and access to credit facilities were factors that influence group membership in Ogun state. In Ekiti, number of extension contact/visit and farm size were additional factors.

15 Conclusion 1.There are obvious economic and social benefits that can be gained by participating in group collective action, 2.There is however the need for the groups to be proactive and responsive to members peculiar production and marketing problems. 3.Majority of the groups that presently exist, as production and marketing cooperatives, are associations formed or arranged to take advantage of external funding or input supply opportunities. 4.This is accentuated by the fact that none of the groups had any common self-generated, forward reaching projects. 5.This poses a serious challenge of sustainability and ability of the groups to survive in the absence of external supports.

16 conclusion 6. The input-use structure showed that cooperative members were more intensive user of purchased inputs (fertilizer and herbicide) per hectare.

17 Recommendations Need to build capacities of members and officials on the tenets of modern cooperatives and democratic principles through a re-education programme. Multi-purpose cooperative groups should be encouraged so as to provide the requisite prop needed to sponsor self generated projects Government agencies and NGOs involved in input and financial intermediations for rice farmers should continue to patronize farmers in groups, while newer ones should be encouraged.

18 VariablesCoefficientProb.Marginal effect Location (State) (0.2130)** Gender (0.2907) Age (0.0136) Education (0.2219) Household size (0.0378)** Rice farming experience (0.0131) No of farm locations (0.2446)* Area of land cultivated (0.0794) Access to herbicide (0.2196)* Access to credit (0.2611) Access to extension agent (0.2592)** Quantity of rice produced (0.0006)* constant (0.8158) Prob< Chi Pseudo R loglikelihood Dependent variable predict0.7634


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