Resource Use Efficiency and Profitability Analysis of Tomato Production (Lycopersicum Esculetum Species) in Federal Capital Territory, Nigeria

Abstract

This study evaluated resource use efficiency and profitability analysis of tomato production in Federal Capital Territory, Nigeria. The specific objectives were to: determine the socio-economic characteristics of tomato farmers; analyze the cost, returns and profitability of tomato production, evaluate factors influencing output of tomato production, estimate resource use efficiency of tomato production, and identify the constraints facing tomato farmers in the study area. Multi-stage sampling technique was used. Primary data were collected through the use of well-structured questionnaires administered to 100 sampled tomato farmers. Data were analyzed using the following tools of analysis; descriptive statistics, gross margin analysis, financial analysis, Cobb-Douglas production functional model and resource use efficiency index. The results show that 83% of sampled tomato farmers were male. About 54% of the sampled respondents were above 41years of age. Majority 79% of the sampled respondents had less than 5 members per household. The results of costs and return analysis show that total average revenue realized by tomato farmers in the study area was about N146,430.00 and total variable cost was N23,057.30. The cost of labour was about N 16,416 representing 70% of the proportion of the cost of tomato production in the study area. The gross margin obtained was N123,372.7 with operating ratio of 1.58 and rate of return on investment of 5.38 respectively. Factors influencing total output of tomato in the study area were household size (P<0.01), farm size (P<0.01), seed input (P<0.05), and labour input (P<0.01). Seed input, labour input, and chemical inputs were underutilized. The results further show that the sampled farmers encountered the following constraints in the cause of tomato production in the study area, land tenure system, lack of good road, inadequate capital, high cost of input and lack of price control. Therefore, the following recommendations were made; financial institutions should provide affordable financial support to tomato farmers and also encourage female farmers to participate in tomato production, improved seed varieties should be made available to farmers for increase in productivity, agricultural extension agents should be provided and organize training on post-harvest practices in order to increase farmers’ incomes and minimize tomatoes wastages in the study area, tomato farmers should form themselves into cooperatives in order for them to assess inputs and subsidies from the government, and also pool their resources together for easy access to inputs and negotiate price.