RESOURCE PRODUCTIVITY IN ORNAMENTAL PLANTS PRODUCTION IN JOS METROPOLIS, NIGERIA

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RESOURCE PRODUCTIVITY IN ORNAMENTAL PLANTS PRODUCTION IN JOS METROPOLIS, NIGERIA

TABLE OF CONTENTS Page

Title Page                                                                                                   i

Certification                                                                                               ii

Dedication                                                                                                 iii

Acknowledgement                                                                                     iv

Table of Contents                                                                                      vi

List of Tables                                                                                             x

Abstract                                                                                                     xii    

CHAPTER ONE

Introduction                                                                                    1

Background Information                                                                1

Problem Statement                                                                         4

Objectives of the Study                                                                    6

Research Hypotheses                                                                      6

Justification of the Study                                                                6

CHAPTER TWO

Literature Review                                                                             9

Trend in Horticultural Plants Production in Nigeria                    9

Types of Ornamental Plants Produced in the Study Area      10

Contributions of Horticulture to Economies                                 11

Importance of Raising Horticultural Plants in Nursery         13

Starting a Commercial Nursery                                                     14

Production Systems and Schedules                                              15

Production Methods                                                                       16

The Concept of Efficiency in Agricultural Production              18

Sources of Inefficiency in Resource Use                                        20

The Concept of Production and Production Function              20

Productive Resources                                                                     21

The Concept of Costs and Returns                                                23

Methods for the Study of Production Activities                             24

2.13.1 Production Function Analysis                                                      24

2.13.2 Functional Funds                                                                          25

2.14  Gross Margin and Benefit Cost Analysis                              27

2.15  Review of Theoretical Framework of Productivity and Resource Use Efficiency                                      28

2.16  Empirical Studies in Resource Use Productivity                           30 Choice of Appropriate Econometric Technique                             32

CHAPTER THREE

3.0 Research Methodology                                                                       34

3.1 The Study Area                                                                                   34

3.2 Sampling Procedure                                                                           34

3.3 Data Collection                                                                                   35

3.4 Data Analysis                                                                                      35

3.5 Model Specification                                                                            36

Socio-Economic Characteristics                                                    36

Farm Budgeting Technique                                                            36

Production Function Analysis                                                        39

Marginal Value Productivity                                                           40

CHAPTER FOUR

4.0 Results and Discussions                                                          42

4.1    Socio-Economic Characteristics of Ornamental Plants

Producers                                                                                        42

Gender of Respondents                                                                   42

Age of Respondents                                                                         42

Marital Status of Respondents                                                       43

Household Size of Respondents                                                     43

Education Status of Respondents                                                  44

Main Occupation of Respondents                                                  45

Experience in Ornamental Production                                          45

Land Acquisition                                                                             46

Source of Funding                                                                           46

4.1.10 Membership of Cooperatives                                                        47

4.1.11 Size of Nursery                                                                     48

4.2 Sales of Ornamental Plants                                                                48

4.3 Period of Sales of Ornamental Plants                                                49

4.4 Profitability of Ornamental Plants Production                                  50

Costs in Ornamental Plants Production                                        50

Revenue from Ornamental Plants Production                  52

4.5    Costs and Returns Analysis                                                           53

4.6    Production Function Analysis                                                        54

4.6.1 Regression Statistics for Ornamental Plant Production               54

4.6.2 Regression Analysis of Socio-Economic Factors                           58

Marginal Analysis And Resource Productivity Of Ornamental Plants                                               59

Tests of Hypotheses                                                                         62

CHAPTER FIVE

Summary, Recommendations, Conclusion                                   66

5.1 Summary                                                                                            66

5.2 Recommendation                                                                                68

5.3 Conclusion                                                                                         69

     References                                                                                            70

LIST OF TABLES

Table                                                                                                           Page

4.1 Distribution of Respondent Based on Gender                                 42

4.2 Age Distribution of Respondents                                                       43

4.3 Marital Status of Respondents                                                 43

4.4 Household Size of Respondents                                                         44

4.5 Education Status of Respondents                                                     44

4.6 Main Occupation of Respondents                                                     45

4.7 Experience in ornamental plants production                                   46

4.8 Acquisition of Land by Respondents                                        46

4.9 Respondents Sources of Funding                                                     47

4.10 Distribution of Respondents According to                                      47

4.11 Size of Nursery of Respondents                                                       48

4.12 Order of Use of Ornamental Plants                                                 49

4.13 Period of Sales of Ornamental Plants                                              49

4.14 Variable and Fixed Costs of Ornamental Plants Production         51

4.15 Revenue from Ornamental Plants Production                                53

4.16 Summary of Regression Statistics for Ornamental Plants             56

4.17 Summary of Regression Statistics for Socio-economic Variables       58

4.18 Marginal Analysis of Inputs Used by Ornamental Plants Producers 62

4.19 Test of Hypotheses of Socio Economic Variables                           63

4.20 Test of Hypothesis of Independent Variables (Inputs)                   64

ABSTRACT

This study was undertaken to analyze resource productivity in ornamental plants production within Jos metropolis of Nigeria. The study covered Jos North and Jos South local government areas. The specific objectives include: identifying the effect of socio-economic factors on resource productivity, determining costs and returns, and resource productivity in ornamental plants production.

An extensive literature review was carried out to provide an in-depth knowledge of the study. The cluster sampling procedure was used because the nurseries are located in clusters. Data was collected from the nursery owners. Six respondents from each cluster and five clusters from each local government area were selected using the simple random sampling method at each sampling stage. Each of the two local government areas was administered the 30 questionnaires making a total of 60 respondents.

Results revealed that 60% of respondents were aged between 41 – 50, while 80% had some years of tertiary education. Also 60% of the respondents’ nurseries were less than a quarter of an acre. About 40% had horticulture as their primary occupation, while 40% and 20% had business and civil service respectively as their primary occupation. The ornamental plants producers made a net farm income of N351,196 per annum and a naira invested gave returns of N1.10.

The regression analysis gave positive coefficients for labour, cuttings, pesticides, water, top soil and polythenes which were significant (P<0.05). However, manure, fuel transportation and annual rent had negative coefficient. Also the regression coefficient of socio economic variables such as education, age, nursery size were positive and significant. Household size had a positive coefficient but was insignificant (P<0.05). Ornamental production experience had a negative coefficient and was insignificant

The ratio of marginal value product to marginal factor cost showed that cuttings, pesticides, water, top soil, and polythene was greater than one, while that of manure, labour, fuel, transportation and annual rent less than one. The implication is that the former inputs were used below the economic optimum while the latter were used above the economic optimum. Also, ornamental plants producers’ profit could be increased by increasing the use of labour, cuttings, pesticide, water, top soil, and polythenes while decreasing the use of fuel, manure transportation and annual rent.

The study showed that ornamental plants business is profitable. It could serve as supplemental source of income. The study showed that only 30% of ornamental plants producers belong to registered cooperatives. It is recommended that they organized themselves into cooperatives in order to access funds, inputs and information on current trends in ornamental plants production. Government on it its side should consider ornamental plants producers in the allocation of farm inputs. Also, special sites should be a assigned for ornamental plants production in new government layout. Ornamental plants production needs to be encourage and sustained as it is a profitable venture. Producers need to pay more attention towards efficient utilization of resources. Agricultural policies that favour this venture will be of great importance to ornamental plants producers.

CHAPTER ONE

            1.0    Background Information.

          Horticulture is the branch of plants agriculture concerned with intensively cultured plants used directly by man as fresh foods, esthetics and medicine (Uzo, 1997). Ornamental plants are plants grown either for colourful flowers or decorative leaves. They include a wide range of herbaceous annuals and perennials extensively employed in landscaping for esthetic purposes of colour, fragrance and enhancing serenity in and around the home, public places such as recreation areas, tourist sites and cities. Ornamental plants also modify the micro climate by providing shade, reducing wind speed, helping to increase humidity and absorbing carbon dioxide and releasing oxygen (Evans, 1999). Ornamental plants provide sanctuary for birds, insects and numerous other animals. Miscellaneous uses include the offer of cut flowers as gifts to people, friends sportsmen and women and national leaders. In Nigeria, flowers are used to beautify homes. In countries like India, flowers are used to adorn women’s hair and decorate pictures of gods, saints and deceased loved ones (National Horticulture Board, 1995).

The major facets of ornamental plants include production of flowers and potted plants, growing of flower bulbs and corms including subsequent arrangement and delivery. Each facet is highly specialized with definite requirements, facilities and technical knowledge (Edmond, 1997). This highly specialized industry involves the growers who produce flowers for wholesale marketers and retail florists who market to the public and contribute occasional services such as packaging and delivery. Current buyers of these plants include individuals who buy to beautify their houses, landscape architects who buy on behalf of institutions for landscaping purposes and hoteliers who buy cut flowers for their customers.

The practice of horticultural plants cultivation in Jos can be traced to as early as 1930s (David, 1999). This was as a result of the activities of tin miners that came to the area under the auspices of Amalgamated Tin Miners of Jos. These Europeans came mainly from British Isles with their wives and siblings. Their wives were quite keen on gardening as their favourite pastime in the absence of regular jobs. These women started gardens at home where they had varieties of imported flowers from their country side. Much later, these Europeans developed interest in some of the locally available fruits, shrubs and hedges. The Europeans started the horticultural society.

Later in the early 1970’s, Nigerians also became interested in the art of flower gardening, encouraged by the Horticultural society during their flowers shows. The government gardens soon took off with Bukuru and Naraguta gardens which were established to encourage gardening, tree planting, and afforestation culture (David, 1999). The Plateau Urban Development Board now known as the Jos Metropolitan Board encouraged the establishment of privately owned commercial gardens in the 1990’s. The idea was for these gardens to occupy vacant plots along the major roads within the city thereby holding the land in trust and also beautifying the environment (David, 1999).

Horticulture in Nigeria gained an impetus by a commitment of $43,433,260 to the National Horticultural Research Institute Ibadan in form of grant for research into the genetic improvement of the plants between 1995 and 1998. Hitherto, the federal government’s financial commitment to horticulture has been low to the tune of 1.2 percent of total allocations for food crop production (Babalola, 1996)

Commercially, there is very active and visible trade in horticultural products which engage and provide employment for some people. Although the actual volume and value of horticultural crops produced and traded are unknown, they are enormous, and contribute substantially to Gross Domestic Product (GDP). In 1995, the value of agricultural output, made up of crops, livestock, forestry, and fishing amounted to N39.88 billion and constituted 38.6 percent of GDP (Central Bank of Nigeria, 1995). The contributions of horticultural crops were estimated at N2 billion, which was much more than forestry (N1.34 billion) and fishing (N1.23 billion).

Nigerians are gradually becoming aware of the need for a beautiful, manageable and sustainable environment. The high intensity of a flourishing horticultural business in metropolitan centres attests to this fact. However, according to Fawusi (1996), the genetic base of our ornamental production is dangerously narrow, whereas, a lot of plants are awaiting collection and domestication in our forest. Kenya and Cote d’ Ivoire are major exporters of cut flowers into the French market, yet Nigeria has more potential than these countries. Horticultural crops require intensive care. It is therefore necessary to have information on cost of production and returns per naira invested to serve as a basis for motivating farmers to invest in horticultural crops production (Adekunle and Oladoja, 1996).

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