Economic viability of okra (<i>Abelmoschus esculentus</i>) production in Ika South and North East Local Government Areas of Delta State, Nigeria

Abstract

This study examined the economic viability of okra (production in Ika South and North East Local Government Areas of Delta State. The specific objectives of the study were to describe the socio-economic characteristics of the okra farmers, assess the profitability and viability of okra production and identify the constraints faced by okra farmers in the study area. Data were obtained from 113 okra farmers selected using multi-stage sampling procedure through the use of structured questionnaire and interview schedules. Data obtained were analysed using descriptive statistics and budgetary technique. Results showed that 51.3% of the okra farmers were females and 90.3% were married with a mean age of 47 years and mean farming experience of 20 years. The average household size was 5 persons while the mean farm size was 2.03 hectares. The total revenue of the okra farmers was ₦235,642.161/ha while the total variable cost was ₦76,022.24/hagiving a gross margin of ₦159,619.92/ha. The total fixed cost was ₦2,735.11/ha resulting in a net return of ₦156,884.81/ha. The benefit-cost ratio of 2.99 and return on investment of 2.03 indicating that okra production in the study area was viable and profitable. The major problems identified by the okra farmers were difficulty getting funds, bad access roads to farms, difficulty in controlling weeds and pests and diseases. The study concluded that okra farming is profitable in the study area and as such efforts should be made by government to encourage farmers to invest in okra production and young people should be encourage into okra production in the study area.

Keywords: benefit-cost ratio, economic viability, okra production, return on investment, gross margin