Measuring the economic performance of smallholder organic maize farms. Implications for food safety and security
Abstract
The use of chemical inputs in conventional agriculture is associated with some health and environmental issues. This led to a call for more sustainable and environmentally friendly agriculture without health issues. However, there is low participation in organic farming in Nigeria, which could be linked to less knowledge about its profitability. The study investigated smallholder organic maize farming profitability in Northern Nigeria. We employed descriptive statistics, profitability analysis, and a multiple regression model to analyse data collected from 480 maize farmers. The results revealed that organic maize farmers had a gross profit of USD 604.81 per hectare, a 0.46 profit ratio, a 0.54 gross ratio, a 0.32 operating ratio, a benefit-cost ratio of 1.85, and a 0.85 return on capital invested. Thus, organic maize farming is a productive and profitable venture. Organic manure, compost manure, farm size, selling price, cooperative membership, extension contact, access to credit, irrigation, education, and major occupation were factors that enhanced organic maize farming’s net profit. However, seed and transportation costs negatively influenced organic maize farming's net profit. Therefore, government and development agencies must intervene to make organic farming more sustainable and profitable by subsidizing seed costs and providing financial assistance to farmers.
References
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Obetta, A.E., Achike, A.I., Mukaila, R., & Taru, B. (2020). Economic analysis of marketing margin of banana and plantain in Enugu state, Nigeria. African Journal of Agriculture and Food Science, 3(4), 52-62.
Pandey, D., Kakkar, A., Farhan, M. & Khan, T.A. (2019). Factors influencing organic foods purchase intention of Indian customers. Organic Agriculture, 9, 357-364. https://doi.org/10.1007/s13165-018-0240-z.
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Sapkota, M., Joshi, N. P., Kattel, R.R., & Bajracharya, M. (2018). Profitability and resource use efficiency of maize seed production in Palpa district of Nepal. SAARC Journal of Agriculture, 16(1), 157-168. https://doi.org/10.3329/sja.v16i1.37431.
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Suwanmaneepong, S., Kerdsriserm, C., Lepcha, N., Cavite, H.J. & Llones, C.A. (2020). Cost and return analysis of organic and conventional rice production in Chachoengsao Province, Thailand. Organic Agriculture, 10, 369-378. https://doi.org/10.1007/s13165-020-00280-9.
Tanko, M. & Alidu, A.F. 2017. Profit efficiency of small-scale yam production in northern Ghana. International Journal of Development and Economic Sustainability, 5(1), 69-82.
Vasileva, E., Ivanova, D., Tipova, N. & Stefanov, S. (2019). Quality of organic foods—a model for comparative analysis. Organic Agriculture, 9, 1-12. https://doi.org/10.1007/s13165-018-0211-4.
Wang, X, Ren, Y., Zhang, S., Chen, Y. & Wang, N. (2017). Applications of organic manure increased maize (Zea mays L.) yield and water productivity in a semi-arid region. Agricultural Water Management, 187, 88–98. https://doi.org/10.1016/j.agwat.2017.03.017.
Wang, X., Yan, J., Zhang, X., Zhang, S. & Chen, Y. (2020). Organic manure input improves soil water and nutrient used for sustainable maize (Zea mays. L) productivity on the Loess Plateau. PLoS ONE, 15(8), e0238042. https://doi.org/10.1371/journal.pone.0238042.
Zalkuwi, J. W., Dia, Y. Z. & Dia, R. Z. (2010). Analysis of economic efficiency of maize production in Ganye local government area Adamawa state, Nigeria. Report and Opinion, 2(7), 1-9.
Anitha, K., Joseph, S., Ramasamy, & Prasad, N. (2009). Changes in structural attributes of plant communities along disturbance gradients in a dry deciduous forest of western Ghats, India. Environmental Monitoring Assessment, 155, 393-405. https://doi.org/10.1007/s10661-008-0442-z.
Ariyo, O.C., Usman, M.B., Olorukooba, M.M., Olagunju, O.E., Oni, O.B., Suleiman, R., Adetunji, A.J. & Ariyo, M.O. (2020). Economics of yam production in Gboyin Local Government Area of Ekiti State, Nigeria. Journal of Experimental Agriculture International42(4): 99-110. https://doi.org/10.9734/JEAI/2020/v42i430504.
Chavas J-P, Posner J.L & Hedtcke J.L. (2009). Organic and conventional production systems in the Wisconsin Integrated cropping systems trial: II. Economic and risk analysis 1993. Agronomy Journal, 101(2), 288.
Dahal, B. R. & Rijal, S. (2019). Resource use efficiency and profitability of maize farming in Sindhuli, Nepal: Cobb-Douglas production function analysis. International Journal of Applied Science and Biotechnology, 7(2), 257-263. https://doi.org/10.3126/ijasbt.v7i2.24648.
Delate, K., M. Duffy, C. Chase, A. Holste, H. Friedrich & Wantate, N. (2003). An economic comparison of organic and conventional grain crops in long-term agroecological research (Ltar) Site in Lowa. https://doi.org/10.1079/ajaa200235.
Delbridge, T.A. Fernholz, C., Lazarus, W.F. & King, RP. (2011). A whole-farm profitability analysis of organic and conventional cropping systems. Annual meeting, July 24-26, 2011, Pittsburgh, Pennyslyvania 103790, Agricultural and Applied Economics Association.
Dobbs, T.L. & Smolik, J.D. (1996). Productivity and profitability of conventional and alternative farming systems: A Long term on-farm paired comparison. Journal of Sustainable Agriculture, 9, 63-79.
Falola, A., Mukaila, R., & Emmanuel, J.O. (2022a). Economic analysis of small-scale fish farms and fund security in North-Central Nigeria. Aquaculture International, https://doi.org/10.1007/s10499-022-00944-1.
Falola, A., Mukaila, R., & Olatunji, O.H. (2022b). Economics of food safety practices among cassava proces¬sors in northcentral Nigeria. Future of Food: Journal on Food, Agriculture and Society, 10(4), 1-15. https://doi.org//10.17170/kobra-202204136018
Falola, A., Mukaila, R., Abdulhamid, K.O. (2022c). Informal finance: its drivers and contributions to farm investment among rural farmers in Northcentral Nigeria. Agricultural Finance Review. https://doi.org/10.1108/AFR-08-2021-0116.
Ferdausi, S., Islam, M. S., Khatun, M. A. & Islam, M.M. (2014). An economic study on maize production in some selected areas of Bogra District. Journal of Sylhet Agricultural University, 1(1), 89-96.
Helmers, G.A., Langemeier, M.R. & Atwood, J. (1986). An economic analysis of alternative cropping systems for east-central Nebraska. American Journal of Alternative Agriculture, 1(4), 153-158.
IFOAM. (2006). The world of organic agriculture. Statistics and emerging trends 2006. International Federation of Organic Agriculture Movements (IFOAM), Bonn and Research Institute of Organic Agriculture.
Jonah, S.E., Shettima, B.G., Umar, A.S.S. & Timothy, E. (2020). Analysis of profit efficiency of sesame production in Yobe State, Nigeria: a stochastic translog profit function approach. Asian Journal of Agricultural Extension, Economics & Sociology, 38(9), 58-70. https://doi.org/10.9734/AJAEES/2020/v38i930408.
Liverpool-Tasie, L.S.O., Omonona, B.T., Sanou, A. & Ogunleye, W.O. (2017). Is increasing inorganic fertilizer use for maize production in SSA a profitable proposition? Evidence from Nigeria. Food Policy, 67, 41–51. https://doi.org/10.1016/j.foodpol.2016.09.011.
McBride, W.D. & Catherine, G. (2008). The profitability of organic soybean production. Renewable Agriculture and Food systems, 24, 6449.
Mgbenka, R.N. & Mbah, E.N. (2016). A review of smallholder farming in Nigeria: the need for transformation. International Journal of Agricultural Extension and Rural Development Studies, 3(2), 43–54.
Mukaila, R. (2022). Agricultural entrepreneurship among the youth: The case of youth involvement in rabbit production in Nigeria. International Entrepreneurship Review, 8(1), 35-46. https://doi.org/10.15678/IER.2022.0801.03.
Mukaila, R., Falola, A., Egwue, L. O. (2021). Income diversification and of rural smallholder farmers’ income in Enugu state Nigeria. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development, 21(3), 585–592.
Mukaila, R., Obetta, A.E., & Ogbu, M.C. (2022). Profitability of melon processing among women in Enugu state, Nigeria. Journal of Tekirdag Agricultural Faculty, 19(3), 620-631. https://doi.org/10.33462/jotaf.1049260.
Obetta, A.E., Achike, A.I., Mukaila, R., & Taru, B. (2020). Economic analysis of marketing margin of banana and plantain in Enugu state, Nigeria. African Journal of Agriculture and Food Science, 3(4), 52-62.
Pandey, D., Kakkar, A., Farhan, M. & Khan, T.A. (2019). Factors influencing organic foods purchase intention of Indian customers. Organic Agriculture, 9, 357-364. https://doi.org/10.1007/s13165-018-0240-z.
Pham, L. & Shively, G. (2018). Profitability of organic vegetable production in Northwest Vietnam: evidence from Tan Lac District, Hoa Binh Province. Organic Agriculture, https://doi.org/10.1007/s13165-018-0223-0.
Sapkota, M., Joshi, N. P., Kattel, R.R., & Bajracharya, M. (2018). Profitability and resource use efficiency of maize seed production in Palpa district of Nepal. SAARC Journal of Agriculture, 16(1), 157-168. https://doi.org/10.3329/sja.v16i1.37431.
Stein-Bachinger, K. Gottwald, F., Haub, A. & Schmidt, E. (2021). To what extent does organic farming promote species richness and abundance in temperate climates? A review. Organic Agriculture, 11, 1-12. https://doi.org/10.1007/s13165-020-00279-2.
Suwanmaneepong, S., Kerdsriserm, C., Lepcha, N., Cavite, H.J. & Llones, C.A. (2020). Cost and return analysis of organic and conventional rice production in Chachoengsao Province, Thailand. Organic Agriculture, 10, 369-378. https://doi.org/10.1007/s13165-020-00280-9.
Tanko, M. & Alidu, A.F. 2017. Profit efficiency of small-scale yam production in northern Ghana. International Journal of Development and Economic Sustainability, 5(1), 69-82.
Vasileva, E., Ivanova, D., Tipova, N. & Stefanov, S. (2019). Quality of organic foods—a model for comparative analysis. Organic Agriculture, 9, 1-12. https://doi.org/10.1007/s13165-018-0211-4.
Wang, X, Ren, Y., Zhang, S., Chen, Y. & Wang, N. (2017). Applications of organic manure increased maize (Zea mays L.) yield and water productivity in a semi-arid region. Agricultural Water Management, 187, 88–98. https://doi.org/10.1016/j.agwat.2017.03.017.
Wang, X., Yan, J., Zhang, X., Zhang, S. & Chen, Y. (2020). Organic manure input improves soil water and nutrient used for sustainable maize (Zea mays. L) productivity on the Loess Plateau. PLoS ONE, 15(8), e0238042. https://doi.org/10.1371/journal.pone.0238042.
Zalkuwi, J. W., Dia, Y. Z. & Dia, R. Z. (2010). Analysis of economic efficiency of maize production in Ganye local government area Adamawa state, Nigeria. Report and Opinion, 2(7), 1-9.
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2023-05-31
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Mukaila, R., Falola, A., & Otekunrin, O. A. (2023). Measuring the economic performance of smallholder organic maize farms. Implications for food safety and security. Future of Food: Journal on Food, Agriculture and Society, 11(2). Retrieved from https://thefutureoffoodjournal.com/manuscript/index.php/FOFJ/article/view/609
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