Effects of Risk on Cocoa Farmers’ Profitability in Ondo State, Nigeria

Adenike Abisola Ogunkunle, Luke Oyesola Olarinde, Adebusola Adenike Adepoju and Matthew Olufemi Adio
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Adenike Abisola Ogunkunle: Department of Agricultural Economics, Faculty of Agriculture, Ladoke Akintola University, Ogbomoso, Oyo State, Nigeria
Luke Oyesola Olarinde: Department of Agricultural Economics, Faculty of Agriculture, Ladoke Akintola University, Ogbomoso, Oyo State, Nigeria
Adebusola Adenike Adepoju: Department of Agricultural Economics, Faculty of Agriculture, Ladoke Akintola University, Ogbomoso, Oyo State, Nigeria
Matthew Olufemi Adio: Department of Agricultural Economics and Extension, Faculty of Agriculture, Federal University, Oye-Ekiti, Ekiti State, Nigeria

International Journal of Research and Innovation in Applied Science, 2022, vol. 7, issue 10, 17-23

Abstract: This study analysed cocoa farmers’ attitude to risk and effects on their income in Ondo State, Nigeria. Multistage sampling technique was used to select a representative sample (234) for this study. Attitudinal Scale Approach (ASA) model, Gross margin and Likert’s scale were used to analysed the data collected. Results showed that the mean age of the respondents was 50.27 years with an average of 15.98 years of experience. The sources of risks perceived by the cocoa farming households as threats to cocoa production were Natural risks (63.68%), social risks (88.89%), economic risks (75.21%), production risk (52.14%) and marketing risks (76.92%). The result of ASA model using Likert’s scale showed that 37.61%, 36.75% and 25.64% of the respondents were respectively categorized as risk averse, neutral and preferring individuals. Results of costs and returns analysis of cocoa farms in the study area indicated that the average farm’s profitability level wasN185,423,725. Regression result showed that the variables that determine farmer’s income included social risks (p

Date: 2022
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