Cocoa advancement and its efficiency in Osun State, Nigeria

This study conducted an economic assessment of Cocoa marketers in Osun state, Nigeria. The specific objectives of the research included examining the socio-economic characteristics of Cocoa marketers, analyzing their marketing activities, evaluating the costs and returns associated with Cocoa marketing, and identifying the challenges faced by the marketers. The study used a Purposive Sampling Technique to select 100 Cocoa marketers in the area. Descriptive and Budgetary analyses were employed to analyze the collected data. The findings indicated that 82% of the respondents were male, 18% were female, all were married with an average household size of 6.02, and 58% had tertiary education. The average age of the respondents was 45.5 years, and they reported an average of 13.5 years of experience in Cocoa marketing. The budgetary analysis showed that Cocoa marketing is a profitable venture in the area. The research area demonstrated a Gross Margin of $2,587.24 per ton sold and a Benefit Cost Ratio of 1.102, indicating the profitability of Cocoa marketing. However, there is potential for enhancing efficiency in this sector. The study also revealed price fluctuations due to international market influences, limited capital, security concerns, high transportation costs, insufficient value addition to cocoa beans, and unfavorable government policies as significant challenges in Cocoa marketing. It was observed that Cocoa marketing operates under perfect competition, as evidenced by the regression analysis highlighting the significant relationship between the number of Cocoa tons sold per season, storage costs, rent, marketer's age, educational background, and Net Return in Cocoa marketing. To address these challenges, it is recommended that the government should focus on creating social infrastructure such as road rehabilitation to facilitate transportation and formulate policies conducive to cocoa marketing. Additionally, marketers are encouraged to establish a registered cooperative society to access financial support and enhance their operations.