Costs and return analysis in rubber latex production in Edo State, Nigeria
The study examined the costs and return analysis in rubber latex production in Edo Sate, Nigeria. Multi-stage sampling method was adopted to select 96 smallholder rubber framers for the study. The first stage was a purposive sampling of two LGAs and then simple random sampling of 6 villages each from the two LGA. Finally eight rubber farmers were selected using the simple random sampling technique from the 12 villages given a total of 96 selected rubber farmers. Data were collected using questionnaire alongside scheduled interview. Data collected were analysed using descriptive statistics and budgetary analysis. The results of the socioeconomic characteristics shows that the mean age of the farmers was 43 years, mean household size was four persons and mean farming experience was 11 years. Majority (82.3%) of the respondents were male and 86.46% were married, while 92.7 % of the farmers used hired labour while the average farm size was 3.8 hectares The result of the budgetary analysis indicated that rubber production was profitable in the study area with a gross margin and net farm income of ₦162, 000 and ₦149, 408 per/ha respectively. However, the return on investment of 0.71 indicated a low profit level. The major constraints faced by the farmers were high cost of labour, incidence of pests and diseases, inadequate credit facilities, inadequate extension services among others. It was recommended that extension services should be provide to assist the farmers in tackling the problems associated with pests and diseases as well as training of rubber farmers in the area of management practices in rubber plantation.
Keywords: Constraints, Costs and Return, Gross Margin, Rubber latex Production