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ECONOMIC EFFICIENCY OF RESOURCE USE AMONG URBAN WATERLEAF FARMERS IN AKWA IBOM STATE, NIGERIA

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ABSTRACT

The study estimated the efficiency of resource use among urban waterleaf farmers in Akwa Ibom State using a sample of 60 respondents that were randomly selected (20) from three urban  centers   in  the  state.  Interview   schedules   and  structured   questionnaires   were administered   to  elicit  information   from  the  respondents.   Data   were  analyzed   using descriptive statistics, multiple regression and gross  margin.  The results showed that, most (85%) farmers were within the economically active age bracket (21-50yrs). All the farmers were female with a mean house hold size of eight. Majority (90%) of the farmers were literate with a mean farming  experience  of  8.5 years.  The average  farm  size was 0.065ha,  and waterleaf was planted as a sole crop to obtain high output. The multiple regression analysis showed  that  educational  level,  household  size,  farming  experience,  quantity  of  manure, labour and farm size  positively and significantly  influenced the output of waterleaf in the study area. The  efficiency  ratios of farm size (28.68), manure  (42.11) and labour (0.91), showed that waterleaf farmers were inefficient in the use of these resources. Land resource and  manure  were  underutilized,  while  labour  was  over-  utilized.  Gross  margin  analysis showed that farmers made profit (Gross margin = N 287,252.52 per hectare). Lack of access to credit facilities was the farmer’s major constraints. It is therefore recommended that credit facilities should be provided to the urban farmers, and extension agent should take advantage of the literate farmers to disseminate research information.

CHAPTER ONE

INTRODUCTION

1.1      Background information

Urbanization is one of the major issues facing mankind today and is in its extent unique in world history (RUAF, 2007). In Nigeria, agriculture is the dominant economic activity (CBN,

2003).  In  recent  years,  urbanization  has  led  to  an  increasing  loss  of  agricultural  land. Urbanization  presents both challenges and opportunities  for the developing  countries as a whole. There is an indication that the challenges of urbanization out-weigh its opportunities in  these  regions.  This  may  be  because  urbanization  has  not  yet  been  matched  with infrastructural  and economic  development.  This in turn  leads  to urban poverty  and food insecurity (Drescher, 2001).

Enete   and Achike (2008), opined that sub-Saharan Africa is the only region of the world where agricultural output has been trailing population growth for most of the last three decades. They further noted that agricultural production has not only been  unstable in the region but has once again resumed a steady decline since 1998 (1998-2002). This may be due to rural-urban migration and low productivity in agriculture.

It is expected that by 2020, 85% of the poor in Latin America and about 40-45% of the poor in Africa will be concentrated  in towns and cities (RUAF, 2007).  Consequently, many city dwellers will be faced with the reality of unemployment,  inadequate  food and shelter, and they are powerless to influence the decisions affecting their lives. These are all dimensions of poverty of which hunger is the most fundamental (World Bank, 2000).

Urban Agriculture which is the growing of crops and raising of animals within and around cities (Drescher,2003), has emerged as a strategic imperative for developing countries (Drakakris-Smith,1997).   Urban   agriculture   (UA)   is   not   a   new   or   recent   invention. Agricultural activities within city limits have existed since the first urban populations were established thousands of years ago (Drescher, 2002). It is only recently that UA has become a systematic focus of research and development  attention,  as its scale and importance  in an urbanizing  world  become  increasingly  recognized  (Van  Vechuizen,  Prain  and  Dezeeuw,

2001). This is essentially due to its potential for poverty reduction, economic empowerment, and household food security.

According to UNDP (1996), Urban Agriculture  refers to an activity that  produces, processes, and markets food and other products, on land and water in urban and peri-urban areas, applying intensive production methods, and using natural resources and urban wastes, to  yield  a  diversity  of  crops  and  livestock.  Its  important  sectors  include  horticulture, livestock, fodder milk production, aquaculture and forestry (FAO, 2002),

It is estimated that 800 million people are engaged in urban agriculture world wide of which 200 million are considered  to be market producers,  employing  150 million  people fulltime (UNDP 1996). These Urban farmers produce substantial amount of food for urban consumers. Armar-Klemesu (2000) noted that, as at 1993, 15-20% of the World’s food was produced  in the urban  areas.  Other  research  information  from  African  cities  are, Dakar; produces  60%  of  the  national  vegetable  consumption  whilst  urban  poultry  production

amounts to 65% of the national supply (RUAF, 2007). In Accra, 90% of the city’s  fresh vegetable consumption is from production within the city (RUAF, 2007).

Urban producers achieve real efficiencies by making productive use of underutilized resources, such as vacant lands, treated waste water, recycled wastes, and unemployed labour (www.cityfarmers.org). In this case, productivity can be as much as or even higher than rural agriculture. This productivity will in turn contribute to the well being of the economy as a whole (Olayide and Heady, 1982)

Moreover, urban agriculture is often associated with agricultural intensification (Enete and Achike, 2008) which usually brings about productivity increases and overall agricultural development.

1.2      Problem Statement

In Nigeria, after her independence, the economy shifted from mainly agricultural to other sectors. The poor then started finding their way into these sectors, hence population in urban area increased  tremendously  to the neglect  of rural agriculture.  Agricultural  sector therefore  started  lagging  behind,  and  hence  failed  to  keep  pace  with  Nigeria’s  rapid population growth. The country, which once exported food, started relying on food imports to sustain itself (Wikipedia, 2007).

However,  economic  reforms  by  past  administration  in  Nigeria,  has  led  to  the retrenchment of  workers especially at the lower level, such that the poor, who found   their way into the urban areas because of jobs in industries and civil service  have suddenly  found themselves jobless.

In 2003, the unemployment rate in Nigeria was 10.8 percent overall. However, urban unemployment  was  12.3  percent  which  exceeded  rural  unemployment  of  7.4   percent (Wikipedia, 2007). As unemployment rate, (especially of the vulnerable group in the urban areas) increases, the basic needs of food, shelter and clothing became increasingly difficult for them to come by.

By 2005, available economic indices showed that about 70% of Nigerians live on less than one dollar per day (U.S Department of State Reports on Human Rights Practice, 2005). One of the solutions to the problem is urban agriculture. However, urban agriculture, despite its potentials for ameliorating poverty, has not sufficiently been reflected in urban planning process in most developing countries (Drescher, 2003). There is every indication that quite a sizeable  number  of the urban  poor are engaged  in  urban  agriculture  (Enete  and Achike, 2008).

As  the  population  of  the  urban  poor  practicing  agriculture  increases,  there  is  an increased competition for the few, available urban land. This could increase the risk of urban agriculture as urban structures could come without notice and midway into a planting season thereby destroying the crops planted. In addition, there is also the risk of low investment and hence low productivity of urban agriculture because of under capitalization of the poor who are into it.

Several studies have been carried out on urban agriculture in Africa (e.g Kicher, 1995; Rogerson,  1998;  Agyemang  and  Smith,  1999;  Armar-Klemesu  Margaret  and  Maxwell, Daniel,  2000;  Lynch,  Binns  and  Olofin,  2001).  All  these  studies  concluded  that  urban agriculture has the potential for poverty reduction, food security and employment generation. These  studies  fail  to  deal  with  the  issue  of  whether  or  not  the  available  resources  are efficiently being utilized by the urban farmers.

The only study that attempted to answer the question is a study in Ghana by Danso, Drechel,  Wiafe-Antwi  and  Gyieke  (2002).  They  only  dwelt  on  the  existing  pattern  of production. Also, they identify market proximity as a major incentive for the intensification of  existing  pattern  of  production.  Another  study  by  Enete  and  Achike  (2008)  made  a

comparison of the use of purchased inputs between urban and rural farmers in Ohafia south east Nigeria. They observed the use of purchased inputs in urban areas as being significantly higher than that of rural areas. They did not give clear answers to the  following research questions.

♦     What are the production systems used by the urban farmers?

♦         Are the available resources being efficiently allocated or utilized by the urban farmers?

♦         What are the constraints  on urban agricultural  production  and how best  to mitigate them?

Hence, this study attempts to give answers to the above research questions especially as it concerns urban vegetable farmers in Akwa Ibom State.

1.3      Objective of the study

The general Objective of the study is to analyze the resource use efficiency among urban waterleaf farmers in Akwa Ibom State.

The specific objectives are to:-

1)                    describe the socio-economic characteristics and the production systems of urban waterleaf farmers in the area.

2)                    to  estimate  the  production  function  and  determine  the  economic efficiency of resource use among urban waterleaf farmers in the study area .

3)                    estimate the cost of and returns to urban  waterleaf farming in the area.

4)                    identify major constraints to urban farming in the area.

5)                    make recommendations based on findings of the study.

1.4      Hypotheses

The following null hypotheses were tested:

(a) The resources in urban vegetable production are not efficiently utilized

(b) Socio-economic  factors of producers do not significantly  influence the urban  farmer’s output.

1.5      Justification of the study

There is a rapid rate of urbanization in Nigeria which is put at 5.3% a year, the fastest in the World  (NEEDS,  2004).  Poverty  rate is on the increase  in the urban  areas. Urban agriculture is now seen as a spontaneous and innovative response by the urban poor to reduce poverty and food insecurity.

In line with the first Millennium Development Goal (MDG) which stresses the need for  eradicating  extreme  poverty  and  hunger  (MDG,  2005),  the  available  resources  if efficiently utilized will increase productivity, thereby reducing hunger and poverty in urban areas.  It is widely  held that efficiency  is the heart of agricultural  production.  For urban agriculture to be sustainable, the available resources must be efficiently utilized. There has been little or no research on resource use efficiency among the urban farmers in the study area.

Analysis of resource use efficiency among the urban farmers in the study area  will assist the farmers on the most efficient  use of the available  urban resources.  It  will also attempt to bridge the demand and supply gap of food production in the urban area. Measures to address food insecurity as well as poverty alleviation in the urban areas will be suggested.

Moreover, this study will attempt to give empirical evidence for urban planners and policy  makers  to incorporate  urban  agriculture  on their  developmental  planning  process.

Strategies will also be devised from this study for the transfer of information gathered, and the acquired knowledge to other urban areas in Nigeria and the developing  countries as a whole.



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ECONOMIC EFFICIENCY OF RESOURCE USE AMONG URBAN WATERLEAF FARMERS IN AKWA IBOM STATE, NIGERIA

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