ECONOMIC EFFICIENCY OF RESOURCE USE AMONG URBAN WATERLEAF FARMERS IN AKWA IBOM STATE, NIGERIA

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ECONOMIC EFFICIENCY OF RESOURCE USE AMONG URBAN WATERLEAF FARMERS IN AKWA IBOM STATE, NIGERIA

ABSTRACT

The study estimated the efficiency of resource use among urban waterleaf farmers in Akwa Ibom State using a sample of 60 respondents that were randomly selected (20) from three urban centers in the state. Interview schedules and structured questionnaires were administered to elicit information from the respondents. Data were analyzed using descriptive statistics, multiple regression and gross margin. The results showed that, most (85%) farmers were within the economically active age bracket (21-50yrs). All the farmers were female with a mean house hold size of eight. Majority (90%) of the farmers were literate with a mean farming experience of 8.5 years. The average farm size was 0.065ha, and waterleaf was planted as a sole crop to obtain high output. The multiple regression analysis showed that educational level, household size, farming experience, quantity of manure, labour and farm size positively and significantly influenced the output of waterleaf in the study area. The efficiency ratios of farm size (28.68), manure (42.11) and labour (0.91), showed that waterleaf farmers were inefficient in the use of these resources. Land resource and manure were underutilized, while labour was over- utilized. Gross margin analysis showed that farmers made profit (Gross margin = N 287,252.52 per hectare). Lack of access to credit facilities was the farmer’s major constraints. It is therefore recommended that credit facilities should be provided to the urban farmers, and extension agent should take advantage of the literate farmers to disseminate research information.

Table of Contents

CHAPTER ONE (INTRODUCTION)

Background Information 1

Statement of the problem 2

Objectives of the study 3

Hypotheses of the Study 4

Justification 5

CHAPTER TWO (LITERATURE REVIEW)

2.1 Productivity and Efficiency of Resource Use 7

2.2 Farm Profitability Analysis 8

2.3 Urban Agricultural Resource Use 9

2.4 Urban Vegetable Production 10

2.5 Benefits of Urban Farming 11

2.6 Challenges of Urban Farming 12

2.7 Urban Farming and Sustainability 13

2.8 Theoretical Framework 14

2.9 Analytical Framework 16

CHAPTER THREE (METHODOLOGY)

3.1 Study Area 18

3.2 Sampling Procedure 19

3.3 Method of Data Collection 19

3.4 Data Analysis 19

3.5 Model Specification 20

3.5.1 Regression Analysis 20

3.5.2 Elasticity of Production 22

3.5.3 Gross Margin Analysis 22

CHAPTER FOUR (RESULTS AND DISCUSSION)

4.0 Socio- Economic characteristics of the respondents 23

4.1.1 Age Distribution of the respondents 23

4.1.2 Sex of Respondents 24

4.1.3 Household Size of respondents 24

4.1.4 Educational level of respondents 25

4.1.5 Farming experience of respondents 26

4.1.6 Farm size of the respondents 27

4.1.7 Cost of renting land 27

4.2 Production Systems 28

4.2.1 Reasons for growing Waterleaf as a sole crop 28

4.2.2 Land acquisition systems 29

4.2.3 Sources of labour used 30

4.2.4 Types/sources of manure used 30

4.2.5 Summary statistics of inputs and output 31

4.3 The estimated production function 32

4.3.1 Effects of socio-economic variables on urban waterleaf farmers output 32

4.3.2 Estimated Productivity of factor inputs 36

4.4 Cost and Returns analysis (Gross margin) 37

4.5 Constraint to urban waterleaf production in the study area 38

CHAPTER FIVE(SUMMARY, CONCLUSION AND RECOMENDATIONS)

5.1 Summary of findings 40

5.2 Conclusion 42

5.3 Recommendations 42

REFERENCES 44

Appendix 50

CHAPTER ONE

INTRODUCTION

Background information

Urbanization is one of the major issues facing mankind today and is in its extent unique in world history (RUAF, 2007). In Nigeria, agriculture is the dominant economic activity (CBN, 2003). In recent years, urbanization has led to an increasing loss of agricultural land. Urbanization presents both challenges and opportunities for the developing countries as a whole. There is an indication that the challenges of urbanization out-weigh its opportunities in these regions. This may be because urbanization has not yet been matched with infrastructural and economic development. This in turn leads to urban poverty and food insecurity (Drescher, 2001).

Enete and Achike (2008), opined that sub-Saharan Africa is the only region of the world where agricultural output has been trailing population growth for most of the last three decades. They further noted that agricultural production has not only been unstable in the region but has once again resumed a steady decline since 1998 (1998-2002). This may be due to rural-urban migration and low productivity in agriculture.

It is expected that by 2020, 85% of the poor in Latin America and about 40-45% of the poor in Africa will be concentrated in towns and cities (RUAF, 2007). Consequently, many city dwellers will be faced with the reality of unemployment, inadequate food and shelter, and they are powerless to influence the decisions affecting their lives. These are all dimensions of poverty of which hunger is the most fundamental (World Bank, 2000).

Urban Agriculture which is the growing of crops and raising of animals within and around cities (Drescher,2003), has emerged as a strategic imperative for developing countries (Drakakris-Smith,1997). Urban agriculture (UA) is not a new or recent invention. Agricultural activities within city limits have existed since the first urban populations were established thousands of years ago (Drescher, 2002). It is only recently that UA has become a systematic focus of research and development attention, as its scale and importance in an urbanizing world become increasingly recognized (Van Vechuizen, Prain and Dezeeuw, 2001). This is essentially due to its potential for poverty reduction, economic empowerment, and household food security.

According to UNDP (1996), Urban Agriculture refers to an activity that produces, processes, and markets food and other products, on land and water in urban and peri-urban areas, applying intensive production methods, and using natural resources and urban wastes, to yield a diversity of crops and livestock. Its important sectors include horticulture, livestock, fodder milk production, aquaculture and forestry (FAO, 2002),

It is estimated that 800 million people are engaged in urban agriculture world wide of which 200 million are considered to be market producers, employing 150 million people fulltime (UNDP 1996). These Urban farmers produce substantial amount of food for urban consumers. Armar-Klemesu (2000) noted that, as at 1993, 15-20% of the World’s food was produced in the urban areas. Other research information from African cities are, Dakar; produces 60% of the national vegetable consumption whilst urban poultry production amounts to 65% of the national supply (RUAF, 2007). In Accra, 90% of the city’s fresh vegetable consumption is from production within the city (RUAF, 2007).

Urban producers achieve real efficiencies by making productive use of underutilized resources, such as vacant lands, treated waste water, recycled wastes, and unemployed labour (www.cityfarmers.org). In this case, productivity can be as much as or even higher than rural agriculture. This productivity will in turn contribute to the well being of the economy as a whole (Olayide and Heady, 1982)

Moreover, urban agriculture is often associated with agricultural intensification (Enete and Achike, 2008) which usually brings about productivity increases and overall agricultural development.

Problem Statement

In Nigeria, after her independence, the economy shifted from mainly agricultural to other sectors. The poor then started finding their way into these sectors, hence population in urban area increased tremendously to the neglect of rural agriculture. Agricultural sector therefore started lagging behind, and hence failed to keep pace with Nigeria’s rapid population growth. The country, which once exported food, started relying on food imports to sustain itself (Wikipedia, 2007).

However, economic reforms by past administration in Nigeria, has led to the retrenchment of workers especially at the lower level, such that the poor, who found their way into the urban areas because of jobs in industries and civil service have suddenly found themselves jobless.

In 2003, the unemployment rate in Nigeria was 10.8 percent overall. However, urban unemployment was 12.3 percent which exceeded rural unemployment of 7.4 percent (Wikipedia, 2007). As unemployment rate, (especially of the vulnerable group in the urban areas) increases, the basic needs of food, shelter and clothing became increasingly difficult for them to come by.

By 2005, available economic indices showed that about 70% of Nigerians live on less than one dollar per day (U.S Department of State Reports on Human Rights Practice, 2005). One of the solutions to the problem is urban agriculture. However, urban agriculture, despite its potentials for ameliorating poverty, has not sufficiently been reflected in urban planning process in most developing countries (Drescher, 2003). There is every indication that quite a sizeable number of the urban poor are engaged in urban agriculture (Enete and Achike, 2008).

As the population of the urban poor practicing agriculture increases, there is an increased competition for the few, available urban land. This could increase the risk of urban agriculture as urban structures could come without notice and midway into a planting season thereby destroying the crops planted. In addition, there is also the risk of low investment and hence low productivity of urban agriculture because of under capitalization of the poor who are into it.

Several studies have been carried out on urban agriculture in Africa (e.g Kicher, 1995; Rogerson, 1998; Agyemang and Smith, 1999; Armar-Klemesu Margaret and Maxwell, Daniel, 2000; Lynch, Binns and Olofin, 2001). All these studies concluded that urban agriculture has the potential for poverty reduction, food security and employment generation. These studies fail to deal with the issue of whether or not the available resources are efficiently being utilized by the urban farmers.

The only study that attempted to answer the question is a study in Ghana by Danso, Drechel, Wiafe-Antwi and Gyieke (2002). They only dwelt on the existing pattern of production. Also, they identify market proximity as a major incentive for the intensification of existing pattern of production. Another study by Enete and Achike (2008) made a comparison of the use of purchased inputs between urban and rural farmers in Ohafia south east Nigeria. They observed the use of purchased inputs in urban areas as being significantly higher than that of rural areas. They did not give clear answers to the following research questions.

What are the production systems used by the urban farmers?

Are the available resources being efficiently allocated or utilized by the urban farmers?

What are the constraints on urban agricultural production and how best to mitigate them?

Hence, this study attempts to give answers to the above research questions especially as it concerns urban vegetable farmers in Akwa Ibom State.

Objective of the study

The general Objective of the study is to analyze the resource use efficiency among urban waterleaf farmers in Akwa Ibom State.

The specific objectives are to:-

describe the socio-economic characteristics and the production systems of urban waterleaf farmers in the area.

to estimate the production function and determine the economic efficiency of resource use among urban waterleaf farmers in the study area .

estimate the cost of and returns to urban waterleaf farming in the area.

identify major constraints to urban farming in the area.

make recommendations based on findings of the study.

Hypotheses

The following null hypotheses were tested:

(a) The resources in urban vegetable production are not efficiently utilized

(b) Socio-economic factors of producers do not significantly influence the urban farmer’s output.

Justification of the study

There is a rapid rate of urbanization in Nigeria which is put at 5.3% a year, the fastest in the World (NEEDS, 2004). Poverty rate is on the increase in the urban areas. Urban agriculture is now seen as a spontaneous and innovative response by the urban poor to reduce poverty and food insecurity.

In line with the first Millennium Development Goal (MDG) which stresses the need for eradicating extreme poverty and hunger (MDG, 2005), the available resources if efficiently utilized will increase productivity, thereby reducing hunger and poverty in urban areas. It is widely held that efficiency is the heart of agricultural production. For urban agriculture to be sustainable, the available resources must be efficiently utilized. There has been little or no research on resource use efficiency among the urban farmers in the study area.

Analysis of resource use efficiency among the urban farmers in the study area will assist the farmers on the most efficient use of the available urban resources. It will also attempt to bridge the demand and supply gap of food production in the urban area. Measures to address food insecurity as well as poverty alleviation in the urban areas will be suggested.

Moreover, this study will attempt to give empirical evidence for urban planners and policy makers to incorporate urban agriculture on their developmental planning process. Strategies will also be devised from this study for the transfer of information gathered, and the acquired knowledge to other urban areas in Nigeria and the developing countries as a whole.

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