Economic Analysis of post-hervest losses of Arable crop in Isin LGA, Kwara State, Nigeria

ABSTRACT 

This study examined the Economic Analysis of Post-Harvest Losses of Arable Crops in Isin

Local Government Area of Kwara State. Multistage random sampling technique was used.

Stage one involved the random selection of six communities which includes Oponda, Alla,

Owu – Isin, Ijara – Isin, Edidi and Igbesi. Stage two involved the random selection of 20

respondents from each of the households of these communities making 120 respondents. The

study estimated the technical efficiency of Arable crop production, determined the factors

affecting technical efficiency of arable crop farming, estimated profit efficiency of arable crop

farming and examined the cost and returns structure of arable crop farming in the study area.

Data was collected using questionnaire and interview schedule and was analyzed using both

descriptive and inferential statistical tools. The study showed that majority (51.83%) of the

rural dwellers was within the age range of 50 – 60 years. Most of them are married, had

household size of 4–6 persons and attended up to secondary school education. The cost return

structure indicates that arable crop farming is a profitable business with gross margin (GM)

of N 511,689.00 and net farm income (NFI) of N 457,913.00. The benefit cost ratio (BCR) of

N4.24 implied that arable crop farming is a viable business and can be embarked upon by

upcoming arable crop farmers in the study area. A problem of heteroskedasticity was

suspected during analysis in the collected data. Breusch-Pagan/Cook-Weisberg test was

carried out to confirm the presence of Heteroskedasticity in the data and a robust regression

was carried out to solve the Problem of Heteroskedasticity. There existed a positively

significant relationship between poor transportation, poor processing, poor packaging, poor

storage and post-harvest losses of arable crops. Post-harvest loss is also significantly

influenced by t cost of production, farm size and gender in the community.it is therefore

recommended that Arable crop farmers in Isin L.G.A should limit post-harvest losses by

adopting proper transportation, processing, packaging and storage system so as to limit post- harvest losses and improve their profit margin, farmers should also plan carefully each

production season, in order to minimize undue (high) costs and farmers, should be provided

educating and enlightenment programmes on proper harvesting methods for different/

various crops 

TABLE OF  CONTENT

Declaration………………………………………………………………………………… iCertification………………………………………………………………………………... iiDedication…………………………………………………………………………………. iiiAcknowledgement………………………………………………………………………… ivAbstract……………………………………………………………………………...……. vi

CHAPTER ONE: INTRODUCTIONBackground to the study………………………………………………………………... 1

1.2 Statement of the problem …………………………………………………………... 4

1.3   Objectives of the study……………………………………………………………… 6

1.3.1 Specific Objectives…………………………………………………………………. 6Hypotheses of the study…………………………………………………….…………... 7

Justification of the study………………………………………………………………... 7

Limitation of the study…………………………………………………………….......... 8

CHAPTER TWO: LITERATURE REVIEW

2.0 literature review…………………………………………………………………... 9

2.1 Conceptual framework……………………………………………………………. 9

2.1.0 Concept of Post-harvest ………………………………..……………………….... 9

2.1.1 Post-Harvest system………………………………………………………………. 9

2.1.2 Concept of Post-harvest Loss……….………………………………………….... 12

Causes of post-harvest losses…………………………………………………………….. 13

viiiSites and Extent of Post-harvest Losses………………………………………………….. 17Theoretical Framework…………………………………………………………………... 17

2.2.0 Bayes' Theorem…………………………………………………………………….. 172.2.1 Empirical Studies………………………………………………………………….... 18

CHAPTER THREE: RESEARCH METHODOLOGY.3.1 The Study Area…………………………………………………………………. . 22

3.2 The Research Population………………………………………………………... 24

3.3 Sampling Size and Techniques…………………………………………………... 24

3.4 Data Collection Instrument……………………………………………………..... 24

3.5 Test of Validity and Research Instrument Reliability………………………….... 24

3.6 Data Collection Method……………………………………………………...….. 24

3.7 Method of Data analysis……………………………………………………….... 24

CHAPTER FOUR: RESULT AND DISCUSSION

4.0 Results and Discussions………………………………………………………… 27

4.1 socio – Economic Characteristics of the Rural Dwellers……………………….. 27

4.1.1 Age……………………………………………………………………………… 27

4.1.2 Gender…………………………………………………………………………... 28

4.1.3 Religious Affiliation……………………………………………………………. 28

4.1.4 Ethnicity………………………………………………………………………… 28

4.1.5 Marital Status…………………………………………………………………… 29

4.1.6 Household size…………………………………………………………………. 29

4.1.7 Level of Education……………………………………………………………... 30

ix4.1.8 Farm size…………………………………………………………………….…. 30

4.1.9 Farming experience…………………………………………………………….. 31

Cost returns structure of Arable Crop farming in Isin Local Government..…......31

4.3 Multiple Regressions to Estimate for Post- harvest losses………………...….... 33

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Research Summary……………………………………………………………... 40

5.2 Conclusion……………………………………………………………………… 41

5.3       Recommendations……………………………………………………………… 42Reference……………………………………………………………………………….. 43Appendix……………………………………………………………………………….. 47

List of Tables………………………………………………………………………….... x

List of Figure………………………………………………………………………….... xv

LIST OF TABLES Page

Table 4.1.1 Distribution of Rural Dwellers by Age…………………………………… 27

Table 4.1.2 Distribution of Rural Dwellers by Gender……………………………….. 28

Table 4.1.3 Distribution of Rural Dwellers by Religion ……………………………... 28

Table 4.1.4 Distribution of Rural Dwellers by Ethnicity……………………………… 28

Table 4.1.5 Distribution of Rural Dwellers by Marital Status……………………...…. 29

Table 4.1.6 Distribution of Rural Dwellers by Household Size ………………............ 29

Table 4.1.7 Distribution of Rural Dwellers by Level of Education…………................ 30

Table 4.1.8 Distribution of Rural Dwellers by size of Farmland……………...………. 30#

Table 4.1.9 Distribution of Rural Dwellers by Farming experience............................... 31

Table 4.2.1 Cost-return structure of Arable Crop farming ………………….…............ 32

Table 4.3.1 D VIF Test for Multicollinearity…………………………………….......... 34

Table 4.3.2 Breusch-Pagan / Cook- Weisberg test for Heteroskedasticity…………….. 34

Table 4.3.3 Multiple Regression to estimates for Post- harvest losses………...………. 35

Table 4.3.4 Robust regression to solve the Problem of Heteroskedasticity…………… 36

LIST OF FIGURES

Figure 1: Map of Nigeria…………………………………………………………………. 22

Figure 2: Map of Kwara State……………………………………………………………. 23