EFFECT OF SELECTED INSECTICIDE ON WHITEFLY (Bemisia tabaci) INFESTING BRINJAL PLANTS Publisher: Asian Economic and Social Society ISSN (P): 2304-1455, ISSN (E): 2224-4433 Volume 2 No. 3 September 2012. Economic Analysis of Floricultural Plants Production in Kwara State, North Central Nigeria Muhammad-Lawal, A., Adenuga, A. H., Olatinwo, K. B. and Saadu, T. A. (Department of Agricultural Economics and Farm Management, University of Ilorin, P.M.B.1515, Ilorin, Nigeria) Citation: Muhammad-Lawal, A., Adenuga, A. H., Olatinwo, K. B. and Saadu, T. A. (2012) “Economic Analysis of Floricultural Plants Production in Kwara State, North Central Nigeria”, Asian Journal of Agriculture and Rural Development, Vol. 2, No. 3, pp. 373-380. Economic Analysis of Floricultural Plants... 373 Author(s) Muhammad-Lawal, A., Department of Agricultural Economics and Farm Management, University of Ilorin, P.M.B. 1515, Ilorin, Nigeria Email:lawaz71@yahoo.com, lawalazeez@unilorin.edu.ng Adenuga, A. H., Olatinwo, K. B. and Saadu, T. A. Department of Agricultural Economics and Farm Management, University of Ilorin, P.M.B. 1515, Ilorin, Nigeria Economic Analysis of Floricultural Plants Production in Kwara State, North Central Nigeria Abstract In spite of the substantial contribution of floriculture to the Nigerian economy, there is still a low level of awareness on the potential of the horticultural subsector of the Nigerian agricultural sector to generate employment and reduce poverty. This study therefore carried out an assessment of the economics of floricultural plants production in Kwara State, Nigeria. The study specifically estimated the returns to farmer’s labour and management. It also assessed the determinants of returns to floricultural plant production in the state. Data used for the study were collected from the forty one registered floricultural plant producers in the study area using structured questionnaire. The farm budget and regression analyses were used for data analyses. The study revealed that returns to farmer’s labour and management was N174, 974.7/ha on the average. Use of manure, labour, farm size, experience, educational level and age of the farmer were found to have significant influence on farmer’s revenue. Inadequate capital to expand the scale of production was identified as the major constraints to floricultural plant production in the study area. The study therefore recommends that farmers be supported by making credit facilities available to them and that people be enlightened on the profitability potential of the enterprise. Keywords: Floriculture, Farm Budget Analysis, Returns to Labour and Management Introduction Despite Nigeria’s huge agricultural resources and oil wealth, unemployment and poverty still remain a major challenge. In Nigeria, the rate of unemployment has been on the increase. The national unemployment rate increased to 23.9% in 2011 compared to 21.1% in 2010 and 19.7% in 2009 (NBS, 2011). The case is getting worse by the day especially in the cities considering the continued migration of people to urban centres from rural areas in search of gainful employment. Okonkwo (2005) in his study of unemployment in Africa identified three causes of unemployment as the educational system, the choice of technology which can either be labour intensive or capital intensive and thirdly inadequate attention to agriculture. There is an increasing trend of disinterest in agriculture by the emerging younger generation preferring white collar jobs, resulting in many of them remaining in the labour market rather than take up jobs in the agricultural sector. This may however be connected to the fact that very little is known about the profitability potentials of some of the agricultural enterprises including floriculture that can be embarked upon in the cities. Floriculture is a class of horticulture that deals with the science and practice of cultivating and arranging of ornamental flowering plants for aesthetic purpose (Acquaah, 2004). It is the science and practice of growing, harvesting, storing, designing and marketing of ornamental plants. It also involves the intensive production of flowers and ornamental shrubs (Muthoka and Muriithi, 2008). Hence floricultural plants are classified by the use of cut flowers, potted plants, foliage plants and bedding plants grown in a controlled environment (Barden et al, mailto:lawaz71@yahoo.com mailto:lawalazeez@unilorin.edu.ng Asian Journal of Agriculture and Rural Development, 2(3), pp. 373-380. 374 1987). As a unit of the agricultural sector, it plays a very important role in income generation to the farmers (Nigeria Economic summit group, 2009). The industry has potentials for generating employment for both rural and urban dwellers directly or indirectly (Usman et al, 2002). The direct jobs include those for skilled labour like researchers, teachers, greenhouse managers and nursery managers among others, while the indirect jobs include those of factories that produce chemicals and machineries for the production and processing of floricultural produce (Acquaah, 2004). The aesthetic value of floriculture could be noticed in public places such as botanical gardens, aboreteum, and parks for public admiration (Hessayon, 1984). Socially, the pionsettias flowers are associated with Yule-tide period, rose are associated with valentine period and lillies are associated with Easter period (Acquaah, 2004). Its role in food and nutrition cannot be overemphasised. This is because floricultural plant such as cauliflower serves as food (Hacket, 1982). In view of the increasing number of personal houses and corporate organisations’ buildings in Nigeria, the investment in floricultural enterprisee has become quite relevant in today’s business environment (Fagbayide and Jolasun, 2002). This is because floricultural plants have great role in enhancing the beauty and attractiveness of such buildings (Chukwuma, 2010). Floriculture has however remained a lowly recognized enterprise in Nigeria in spite of the inherent unique potentials of the industry in transforming a nation’s economy. The industry has received very little attention in the nation’s plan for agricultural development (Oseni, 2004). This may however be attributed to inadequate awareness of the profitability potential of the enterprise as well as insufficient knowledge of the most important issues that affect returns to floricultural plant production. This study was therefore undertaken to examine the economics of floricultural plant production and assess the determinants of returns to floricultural plant production in the study area. Methodology The study was conducted in Kwara state, Nigeria. According to the 2006 census reports, the population of Kwara state stood at 2.37million consisting mainly of Yoruba, Nupe, and Baruba ethnic groups(NPC, 2007). More than 90% of the rural populace are involved in farming (Kwara state diary, 2004). The state has a land area of about 32,300 square kilometers extending from latitude 7 0 15 0 N on its Southern hemisphere and longitude 6 0 18 0 E on the Southern Eastern reach. The state has two climatic seasons, the wet and dry season. The natural vegetation of the state comprises wooded and rainforest savanna. Major land forms in the state are plains, undulating hills, and valleys with annual rainfall ranging between 900mm to 1600mm while the average temperature lies between 30 0 C and 35 0 C. Agriculture is the main productive economic activity in Kwara state. Production of varieties of cash and food crops as well as floricultural plants especially in the urban areas constitutes the major agricultural activities in the state. Sampling techniques The target population were the farm household operating floricultural plant nursery in the metropolitan areas of Kwara state, Nigeria. Due to the fact that floricultural plants production are restricted to the urban centers (Abegunde et al 2009). The sampling technique involved the selection of the forty one registered floricultural plants nursery operators Data analysis Descriptive statistics such as frequency counts mean and percentages were employed to describe socio-economic characteristic of the floricultural nursery farm households and marketing strategies used by the floricultural plant producers. Farm budget and the Ordinary Least Square (OLS) regression analyses were used to assess the costs and returns to floricultural plant production and the determinants of returns to the enterprise respectively. Farm budget analysis The farm budget analysis was used to assess the costs and returns to floricultural plants production in the study area. The returns to farmer’s labour and management is expressed in Naira per hectare (N/ha). Costs comprise both fixed and variable cost. Economic Analysis of Floricultural Plants... 375 Fixed Cost (FC) includes cost of land rent, labour and depreciation charges on simple farm tools and production. Variable Cost (VC) include: cost of fertilizer, seed, agro-chemical, hiring cost, repair, maintenance and transportation. Returns are revenue that accrue from the sale of produce GM = TR – TVC GM – TFC = NFI NFI =R LM = GM – TFC Where TR = Total Revenue TVC = Total Variable Cost (N) TFC = Total Fixed Cost (N) GM = Gross Margin (N/Plot) NFI = Net Farm Income (N) RLM = Return to Farmer Labour and Management [N] Regression analysis This tool was used to measure the amount of variability of the dependent variable that can be explained by the independent variables. The variable regression co-efficient indicate the amount of change that will be observed in the value of dependent variable when the independent variables are altered. The explicit form of the model is given as: Y = a+b1X1+ b2X2+b3X3+b4X4+b5X5+b6X6+b7X7 +b8X8+u Where Y = Total revenue (N) a = constant bi where i =1,2...8 - are the regression co- efficient X1 = Age (Years) X2 = Experience ( years) X3 = Household size X4 = Farm size (Ha) X5 = fertilizer used (kg) X6 = Manure used (kg) X7 = Labour employed (Man day) X8 = Educational level (number of years spent in school) U = factors that are not adequately accounted for but contributes to total revenue i.e. random term. Ordinary least square regression, semi-log, exponential log and double log regression were separately estimated. Results and Discussion Socio-Economic characteristics of the respondents The socio-economic characteristics of the floricultural plant producers are shown in Table 1. Table 1: Socio economic characteristics of the respondents (n=41) Characteristics Frequency Percentage Age (in years) ≥ 25 2 4.9 26 – 40 20 48.8 41 – 60 16 39 Above 60 3 7.3 Household size 1 – 6 23 56.1 7 - 12 18 43.9 Years of Experience 1 – 5 8 19.5 6 – 10 17 41.5 11 – 20 5 12.2 Above 20 5 12.2 Educational Level Tertiary 35 85.4 Secondary 5 12.2 Quranic Education 1 2.1 Management Practices Use of Organic Manure 41 100 Asian Journal of Agriculture and Rural Development, 2(3), pp. 373-380. 376 Use chemical Fertilizer 23 56.1 Type of Labour Hired and Family 32 78.1 Family 12 29.3 Communal 3 7.3 Land Acquisition Rented 21 51.3 Purchased 12 29.3 Communal 2 4.9 Lease 6 14.5 Field Survey, 2011 From Table 1, it can be observed that most of the respondents were within the age range of 26-40,which implies that floricultural plant production in the study Area are mainly in the hands of youth. The table also revealed that majority of the respondents had family size of between 1-6 members. Almost all the respondents had tertiary education indicating that floricultural plant producers in the study area are educated. The average years of experience of the respondents was found to be 11.1 years. Majority of the respondents acquire their land through rent and all the respondents made use of organic manure in their production process. The use of compost, animal dung, and poultry droppings dominates. Also, some of the respondents used chemical fertilizer in addition to organic manure. Most of the floricultural plant producers made use of hired and family labour. Type of floricultural plants Table 2: Types of floricultural plants produced in the study area Common Botanical name Frequency Percentage Hedges Yellow bush Duranta repens 41 100 Green bush Dranta green 41 100 Croton Cadiacum veriegatus 41 100 Ixora Ixora spp 41 100 Trees masquerade Siracca longifera 38 92.7 Ficus Ficus spp 41 100 Yellow ficus Ficus benjamia 41 100 Christmass tree Thuja 23 56.1 queen of night Cestrum noctrunum 28 68.3 Palms Royal palms Roystonea regia 41 100 kings palms Archonthphonix SPP 41 100 Grasses Bahama 24 58.5 Sources: field survey, 2011 Table 2 showed that Hedges, trees, palms, grasses are the predominant type of floricultural plants produce in the study area. The cultivation of these plants is possible due to the nature of the plants which are resistance to drought, easy germination as well as their popular demands for boundary demarcation and source of shade. Economic Analysis of Floricultural Plants... 377 Table 3: Marketing of floricultural plants Marketing channel Frequency Percentage Direct sales 14 34.2 Contract and direct sale 27 65.8 Total 41 100 Source: Field Survey, 2011 The table reveals that the Gardeners either sell to consumer directly or on contract basis. This is an indication that there is a ready market for floriculture products. Cost and returns analysis This analysis was conducted to determine the contribution of floriculture to the livelihood of the respondents. The total revenue was determined from the annual volume sales, while the total variable cost (TVC) was determined by summing up the cost of all purchased inputs and hired labour. The gross margin (GM) less rent on land, depreciation on mechanical tools and imputed cost of family labour gave the returns to Farmers Labour and Management. Table 4: Summary of cost and returns to floricultural plant production Items Average/ha(N) Gross Revenue (GR) 312,887.2 Less Total variable cost (TVC) 93,291.9 (Seeding seeds, fertilizer, hired labour, herbicide and others) Equals Gross margin (GM) 219,595.4 Less Rent on land 21,312.5 Less Depreciation on tools and equipment 12,633.2 Less imputed cost of family labour 10,675 Returns to farmers’ Labour and Management (RLM) 174,974.7 Source: Field survey, 2011 Table 4 reveals the cost and returns to floricultural plant production in the study area. The estimated average variable costs of production incurred by all respondents was N 93, 291.9, overall, the average Gross revenue recorded in the study area was N312,887.2, while the average Gross margin was N 219,595.4. Hence the returns to farmers labour and management was estimated to be N174,974.7/ha which means that on the average, floricultural plant production is profitable in the study area. Regression Estimate Regression estimate was carried out to determine the factors influencing revenue generation in floricultural plant production in the study area. Asian Journal of Agriculture and Rural Development, 2(3), pp. 373-380. 378 Table 5: Summary of regression of analysis Determinants Beta Standard error t-value R 2 F-Value Constants 9684557.003 24253867 3.993* 0.916 21.372 Age -1.068 0.126 -4.936* Experience 0.905 0.153 4.841* Household size 0.096 1.426 0.627 Farm size 0.524 0.136 3.858* Fertilizer used -0.434 0.126 -3.446* Manure used 0.860 0.118 7.284* Labour man-day 0.211 0.059 3.591* Education level 0.311 0.0906 3.431* Significant at 5% level of significance Computer printout, 2011 The result in table 8 shows the level of variation in the total revenue explained by the eight explanatory variables as earlier stated. The semi-log function was chosen as the lead equation as it has the highest adjusted R 2 – value and all the variables were significant except for the household size. This result shows that as the farmer gets older the total revenue decrease. This could be due to the fact that as the farmer grow in age, their ability to do more farm work reduces and consequently the total Also, as the amount of the fertilizer usage increases, the total revenue drops. This may be due to the fact that excess fertilizer application becomes toxic to plant (Acquaah, 2004) and thus reduces productivity of the plant and consequently the total revenue. However these factors accounted for about 91.66% of the total variation in the total revenue that is other factors contributes less than 10% to the variation in total revenue. Table 6: Problems facing floriculture Problem Frequency Percentage Inadequate capital 32 78.1 Water shortage 12 29.3 Low demand 10 24.4 Pest and diseases 5 12.2 Field survey, 2011 The table revealed that the major striking problem confronting floriculture is inadequate capital to expand scale of production. Conclusion and Recommendations Floriculture is a very lucrative and profitable enterprise hence, offers great opportunity for people to be gainfully employed in the face of rising unemployment challenges. In order to improve the state of production, there is a need to address the major issues affecting the industry as such would go a long way in improving the nation’s economy. Based on the findings in this study, it is recommended that, loan be made available to farmers by financial institutions to enable the floriculturist increases their scale of production. 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