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PROBLEMS AND PROSPECTS OF MAIZE PRODUCTION
ABSTRACT
This study examined “PROBLEMS AND PROSPECTS OF MAIZE PRODUCTION”. The study was carried out in Kuje Area Council, Abuja, Nigeria. Primary data were used for this study. Data were obtained using structured questionnaire. The questionnaires were administered to one hundred (100) maize farmers in the study area sampled using a systematic sampling technique. Data obtained were analyzed using descriptive statistics, budgetary technique and multiple regression analysis. Result shows that the farmers are relatively young with average age of 37 years and 36% of the respondent belongs to the age group of 31-40 years. About 79% of the sampled maize farmers had formal education and 76% of sampled farmers do not have access to extension services, also 80% could not have access to capital. The result of the budgetary technique analysis showed that maize production is profitable with a gross margin of N91688.32. The results of multiple regression analysis show that the coefficients of cost of family labour, non-farm income and cost of seeds were positively significant at 1% probability levels respectively, while the coefficients of cost of chemical and cost of hired labour were positive and significant at 5% probability levels respectively. The coefficient of multiple determinations (R2) of 0.70 revealed that 70% of the variations in dependent variable was explained by the explanatory variables included in the model. Lack of extension services, education, fertilizer; lack of improved seed varieties, and lack of capital were identified as a major production constraint. This study recommends that capacity of agricultural extension agents needs to be improved in the study area to educate farmers to invest in maize production and improved agricultural technologies need to be provided. Also, Government needs to improve on good road networks and appropriate policies to regulate standards.
CHAPTER ONE
INTRODUCTION
1.1 Background To The Study
One of the major tasks facing Nigerian agriculture is the provision of an adequate and well-stable food supply to meet the requirements of a growing population. One of such food crops is maize. The significance of maize to the modern society is first and foremost clearly reflected in the importance of the crop in the diet of man and animals throughout the world (Onwueme and Sinha, 1991).
Abubakar (1999), ranked maize as the third most important cereal after wheat and rice globally. In Nigeria, maize is produced across the country right from the mangrove region in the south to the Sahel Savannah in the North (Edache, 1999; Tauna, 1999; Olukosi and Raphael, 1997). Maize production in Nigeria has also been on the increase both in terms of hectarage and production. A seven-fold increase in production occurred between 1984 and 1994. Similarly production increased from 6,515,000.0 to 7,019,500.0 tonnes (7.75%) between 1999 and 2003 respectively (CBN Annual Report 2003). In recent years however, production of maize in Nigeria has been declining due to low input usage. For example, in 2000 production was 6491MT as compared to 6515MT in 1999. Rapid population growth and increased pressure on land have led to a reduction in fallow periods to below the threshold needed for sustainability (FAO, 1985; Conways, 1997). To compound the situation, essential inputs such as fertilizer, herbicides and pesticides were often scarce and costly at a time when economic reforms have compelled reductions in farm inputs subsidies.
Maize is a heavy feeder that requires sustainable amount of nutrients uptake. In the Savannah region, the enormous potentials for maize production can be realised only with the use of high levels of fertilizer, improved seeds, hectarage expansion and adequate weed control. With adequate supply of these inputs and the provision of adequate storage facilities, the rapid expansion of maize could be sustained. Since the 1970s, the federal government made it a policy to increase the agricultural production through the increased use of fertilizer. This led to the decision by the Federal Government to establish local fertilizer plants as against relying entirely on fertilizer importation as the case was prior to 1976. The effectiveness and sustainability of these plans varies with government. For maize farmers, access to fertilizer is an important input considered in the production decision. This have direct effect on the level of productivity, thus increased productivity contributed to economic development and policies for effective mobilization of the resources for transforming self-sufficient oriented maize farmers to commercial and market oriented agriculture (Nyako, 1999).
The total area under maize cropping in Nigeria was estimated to be 3.0 million hectare (Lamarde, 1994). Traditionally, production ranged from 0.4 – 1.7 tonnes per hectare, but with improved methods and improved inputs, the yield could be up to 4 – 5 tonnes per hectare (Lamarde, 1994). Maize is the most important cereal in Nigeria and is grown either as a vegetable at the backyard or on the farm (Kehinde, 1997). Throughout Nigeria, the selling of roasted and boiled maize is a thriving business that provides employment for hundreds of thousand of young girls and women. Though 3 the nature of employment is part time and seasonal, it nonetheless provides an important source of livelihood for the hawkers. Maize is also widely processed into a variety of food drinks such as pap and “Kunu”. In addition, maize is used in making cakes such as ‘masa’. However, the predominant use of maize in Northern Nigeria is for making ‘tuwo’. It is also the main source of energy in livestock and poultry feeds. The growing plant can be cut and made into silage or hay for the feeding of cattle and other ruminants. Thus, maize production gives employment to people and provides food and drinks for man and feeds for poultry and livestock.
1.2 Problem Statement
Problems of maize production include: inappropriate decision on how best to allocate resources; inadequate use of corresponding production inputs, and inadequate adoption of improved technologies by farmers. Also farmers might use resources rationally but not at economic optimal level. All these contribute to inefficiency. Effort aimed at increasing maize output cannot be achieved unless the current level of inputs utilization is scaled up (Fakayodeet al, 2008). The performance of African agriculture has been disappointing over many decades (Wayoet al, 2011).Whereas Sub-Saharan Africa is reported as the only region in which per capita agricultural value added has not seen a substantial increase, rather a declining trend on average over the last three decades since 1961 with considerable variation over time and across countries(Wayoet al, 2011). This declining per capita food production has resulted in increasing rural poverty, rising food prices, widespread famines and increasing food imports. It is a frustrating to note that the Green Revolution, which has saved many lives in Asia and South America, has bypassed Africa and hunger still prevails on the continent despite the past research and development efforts. Some of the factors hindering agricultural development in Africa include inadequate investment in agriculture, limited access to credit by smallholder farmers, high cost and unavailability of inputs such as fertilizers and improved seeds, inadequate use of modern technologies, inefficient agricultural input markets, and the absence of a conducive policy environment. Africa’s consumption of modern inputs, particularly fertilizers, is comparatively very low(Markus, 2010). Wayoet al, (2011) projected that the situation was not going to change much in the short run as Africa was expected to account for less than 3% of world fertilizer consumption by the end of 2012. The use of improved agricultural inputs in Africa is very low and has remained largely static over the last 25 years; lower input usage are in smallholder food crop and livestock production systems. According to Salami et al. (2010), efficient input markets are also crucially important in order to deliver the right product, at the right time, in the right amounts, at a convenient place, and for an affordable price. Moreover, access to input and output markets are a key precondition for the transformation of the agricultural sector from subsistence to commercial production, therefore, smallholder farmers must be able to benefit more from efficient markets and local-level value- addition, and be more exposed to competition (Salami et al, 2010). In response to this low agricultural input use, African Union (AU) member states passed the Abuja declaration with resolutions to increase timely access and raise fertilizer use by farmers to an average of 50 kg/ha by 2015. The declaration intended to increase fertilizer access and usage through elimination of barriers to fertilizer access such as tariffs on fertilizers and fertilizer raw materials. Increased fertilizer use is ought to increase productivity, reduce food insecurity and poverty levels among smallholder farmers (Aloyceet al, 2014). Maize production therefore has strategic importance for food security and the socio-economic stability of countries and sub regions in sub Saharan Africa, including Nigeria. In Nigeria, maize is among the most important crops, but poor seed supply, inefficient marketing system, and low investment in research are among the factors that have limited its production (Ayanlereet al, 2013).Yahaya,et al (2010) reported thatdespite the economic importance of maize to the teeming populace in Nigeria, it has not been produced to meet food and industrial needs of the country. Despite human and material resources devoted to agriculture, the productive efficiency of most crops maize inclusive still fall under 60 % (Fakayodeet al, 2008).Ogunsumiet al, (2005) asserted that, in spite of the abundant land and humanresources available in Nigeria, yields per hectare from maize production havebeen on the decline over the years. Thus, the poor performance of the crop canbe attributed to the fact that, bulk of the country’s producers (over 90%)produce at subsistence level with rudimentary farming system, low capitalizationand low yield per hectare(Nyororo, 2004). More so, the authorsstated that, input/output price fluctuation, credit facilities, diseases and pests,poor storage facilities among maize farmers have been identified as major problems of low maize yield in Nigeria.Rapid growth in agriculture is essential for broad based economic growth, butacceleration in agricultural growth requires sound use of science and technologyembodied in improved seed, fertilizer, agrochemical and other agronomic practices.However without an efficient and cost effective supply of these inputs at the farm gate, science based growth in agricultural productivity cannot be achieved. Furthermore, with the phased withdrawal of subsidies and privatization, the input markets remained underdeveloped and fragmented and farmers do not receive good quality inputs and pay unreasonable high prices despite the fact that the private sector in Nigeria has a potential to supply agricultural inputs in a cost effective manner (IFDC, 2001). At the same time, the impact of factors such as the policy environment, and the availability of markets for the disposal of farm outputs is not often considered despite the fact that such factors make farmers to work harder and thus, produce higher outputs.The increasing population is also posing a threat on the land available for cultivation and this makesthe farmer to continue the cultivation of a crop on the same land for a long period of time, this will drastically reduce yield and subsequently price and profit. Studies carried out by Amani (2004) and (2005), Skarstein (2005), Isinikaet al, (2003), MAFC (2006), Nyange and Wobst (2005) revealed that smallholder maize productivity in the country is suffering because most smallholders do not practice high-yield farming methods, and are subsistence farmers. The aggregate response of farmers to positive prospect in maize depend on economic viability of production, hence a comprehensive economic analysis of maize production will provide a good guide to policy makers on “what is lacking” and “what to do” to actually consistently increase physical output of the crop. Therefore, it is important to understand the farmers’ levels of production and its relationship with land factors which can greatlyimprove the production of the commodity. This can be achieved throughinvestigating the socio-economic and profitability of the maize farmers.Farmers output needs to be increased using existing inputs and technology.This research is therefore carried out to determine the profitability as well as the factors influencing maize production in Kuje Area Council Abuja. This studyis designed to provide answers to the following research questions:
What are the socio-economic characteristics of maize farmersin Kuje area Council, Abuja, Nigeria?
What is the profitability analysisof maize production in the study area?
What are the factors influencing gross returns from maize (Zea mays) production in the study area?
What are the challenges facing maize framers in the study area?
1.2Objectives of the Study
The broadobjective of this study is to evaluatethe problems and prospects of maize production in Nigeria.
The specific objectives areto:-
identify the socio-economic characteristics ofmaize farmers in the study area.
estimate the profitability analysis of maize production inthe study area.
examine the factors influencing gross returns from maize production in the study area.
Identify the challenges confronting maize farmers in the study area.
1.3Justification for the Study
Maize (Zea mays) is the most important cereal crop in sub-Saharan Africa and important staple food for more than 1.2 billion people in sub=Saharan Africa and Latin America.In Nigeria maize, is the third most important cereal crop after sorghum and millet (Ojo, 2000).Maize have played a central role in the life of people of Nigeria, over the years, it is the most highly consumed grain and it accounts for two-third of the calorific intake and grown by large proportion of Nigeria households. Its utilization is in three principal ways as human foods, feed for livestock and industrial usage, maize as a cereal crop supplied approximately 65% carbohydrate as the major component. It is rich in carbohydrate, protein, mineral and vitamin B (Ikenet al, 2002). According to Msuya (2008), increasing productivity is crucial for improving the livelihoods of smallholder farmers; He revealed that low productivity is one of the primary causes of low and unstable value added along the value chains leading to a stagnant rural economy with persistence of poverty. Hence, increasing maize productivity is crucial for improving the livelihoods of smallholder farmers in the country.Policy makers have been making frantic efforts to attract people into farming. This study is expected to provide valuable benchmark information to these new entrants on resource productivity and profitability in maize production so as to enable them considers its production as a viable option. As for farmers who are already cultivating the crop, the study will go a long way in providing information on ways of boosting production. Maize can be used in making diesel, and biofuel, industries also make use of maize for the production of items such as semovita, maize flour, custard and it is also used as animal feed and as raw material for brewing beer and for producing starch (IITA, 2008). Maize has a higher yield of food energy than wheatand rice. For example, maize of about 93 percentextract has an average yield of 5.4 million calories per hectare. In Africa, maizeconsumption account for about 64percent of thedaily calorie intake of the rural dwellers especiallyduring the hunger period. In order to increase the production of maize, sound micro and macroeconomic farm policies are needed. These require prior to their formulation, an understanding of the input prices and output relationship in maize production. This will obviously go a long way in generating employment opportunities for thousands of Nigerians, improve the food security status of Nigerians and most importantly, improve export and generate additional foreign exchange for the country (Tabitha, 2005).
CHAPTER TWO
LITERATURE REVIEW
2.1 Theoretical Framework
The theoretical framework consists of theories, principles, generalizations andresearch findings which are closely related to the present study. The researcher’s knowledgeof the problem and his understanding of the theoretical and research issues related to theresearch question will be demonstrated. This section looked into the underlying theoriessupporting maize production. In this study the theory of Allocative efficiency will be used.Allocative efficiency is a measure of how an enterprise uses production inputs optimally inthe right combination to maximize profits (Inoni, 2007). Thus, the allocatively efficient levelof production is where the farm operates at the least-cost combination of inputs. Moststudies have been using gains obtained by varying the input ratios based on assumptionsabout the future price structure of products say maize output and factor markets. This studyfollows Chukwujiet al, (2006) reviewed assumptions used by farmers to allocate resources for profit maximization. Such assumptions included, farmers choose the best combination(low costs) of inputs to produce profit maximizing output level; there is perfect competitionin input and output markets; producers are price takers and assumed to have perfect marketinformation; all inputs are of the same quality from all producers in the market.Allocative efficiency can also be defined as the ratio between total costs of producing a unitof output using actual factor proportions in a technically efficient mannerInoni(2007). Thus for the farm to maximize profit, under perfectly competitive markets,which requires that the extra revenue (Marginal Value Product) generated from the employment of an extra unit of a resource must be equal to its unit cost (Marginal Cost =unit price of input) (Chukwuji, et al, 2006). One can trace back the beginning of theoretical developments in measuring (output-oriented) technical efficiency to the works of Adewumi (2015). Efficiency is the act of achieving good resultwith little waste of effort. It is the act of harnessingmaterials and human resources and coordinatingthese resources to achieve better management goal.Adewumi (2015) distinguished between technical andallocated efficiency (and price efficiency) as ameasure of production efficiency through the use offrontier production and cost function respectively. Hedefine technical efficiency as the ability of a firm toproduce a given level of output with a given minimum quantity of input under certain technologyand allocative efficiency is the ability of the firm to choose optimal input level for a given factor prices. More recently, Ogundari and Ojo (2005),Ojo (2004), Ajibefunet al (2002) in whichthey offer a comprehensive review of the applicationof stochastic frontier model in measuring of the agricultural producers in developing countries. Since then however there is a growing literature on the technical efficiency of smallholder farmers’ in agriculture. The average technical efficiency of maize smallholders reported in these studies range between 0.49 among maize farmers in Kenya to 0.76 among Tanzania sugarcane farmers. This shows smallholder farmers have low and highly variable levels of efficiency especially in developing countries. Most studies have associated farmers’ age, farmers’ education, access to extension, access to credit, agro-ecological zones, land holding size, number of plots owned, famers’ family size, gender, tenancy, market access, and farmers’ access to improved technologies such as fertilizer, agrochemicals, tractors and improved seeds either through the market or public policy interventions with technical efficiency(Amosm, 2007; Ahmad et al, 2002; Kibaara, 2005; Tchale and Sauer, 2007; and Basnayake and Gunaratne, 2002). Although studies by Amos (2007), Raghbendra, et al, (2005), and Barnes (2008) found the relationship between land holding size and efficiency to be positive, a clear-cut conclusion on the influence of this variable on efficiency has not been reached. On the other hand, influence of the number of plots on efficiency has been reported by Raghbendraet al (2005) to be negative. This implies land fragmentation (as measured by number of plots) have a negative impact on yields. There are conflicting results on the influence of socio-economic variables such as gender on efficiency. Tchale and Sauer (2007) point out that, while some studies (in Lesotho) report gender of the farmer has no significant influence on efficiency, other studies found that gender plays an important role. About 90% of smallholders in the study area sell their maize at home or selling per stand. However, we have included other variables we find important in addressing sources of productivity variability among maize farmers. We are assessing the effect of diversification to off-farm activities on efficiency. Due to lack of formal credit facilities, small businesses are used by smallholders to raise money which they need as working capital. This might have a positive effect on efficiency. However, in the long run this practice might not foster specialization leading to a negative impact on efficiency. According to Skarstein (2005), R&AWG (2005) and Msuya(2007), producer associations are very important in transforming the agricultural sector into one with high productivity and high quality output. If the agriculture sector is to be transformed, producer associations (in form of farmers’ cooperatives) are needed first and foremost to give the maize farmer bargaining power in the input, output and credit markets. Msuya(2007: 2865) and R&AWG (2005: 89) went a step further and showed integrated producer schemes are more suited than cooperatives in assisting farmers to address most of the constraints they face including low production and productivity. With this in mind we include in the inefficiency model a variable that take into account involvement of smallholders in farmer associations. Discrete variable is included to account for agro-ecological and environmental differences between districts, as farming in the study area is greatly influenced by these factors. This will also ensure we reduce biases as a result of omitted variable, which leads to over-estimation of technical inefficiency.
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