SOURCE:

Faculty: Management Sciences
Department: Co-opreative Economics And Management

CONTRIBUTORS:

Uzondu, C. S.
Umebali, E. E.

ABSTRACT:

The study examined the profitability of rice production among members of farmers’multipurpose cooperative societies (FMCS) in south-east Nigeria. Some major identifiable constraints with profitability of rice production in the study area are inadequate supply of fertilizer, lack of farm land and labour,scarcity of improver rice seed. The specific objectives for this study include to determine the relationship between productivity and factor inputs on rice output; to examine the relationship between rice production and profitability indices on rice output; to examine the influence of farmer’s socio-economic variables on profitability of rice production. To examine the influence of constraints on rice output. Random and non-random sampling technique was used to obtained data from 400 respondents in the study area. The study however was anchored on the Group dynamics theory. Data obtained were analyzed with descriptive and analytical statistical models. Finding revealed from study are; the study established that rice output is positively significantly influenced by farm inputs such as rice seeds, fertilizer, farm size and labour. The entire farm inputs considered jointly explain more than 62% of the variations in rice output. The findings of the study reveal that there is a significant relationship between rice outputs, gross margin, gross margin ratio and returns on capital, however there is an insignificant relationship between rice output and operating profit with a p-value of 0.342. The study established that farmer’s socio-economic variables significantly influenced profitability of rice production in the study area. The study established that rice output is significantly influenced by such production constraints as high labour cost, inadequacy of capital, scarcity of improved rice seeds, and pests and diseases. Based on the findings of the study, the following recommendations were made; the government as well as agricultural cooperatives and venture capitalist’ should consciously increase rice seed’s availability, subsidize fertilizers, make rice farm lands available to members of Farmers Multipurpose Cooperative Societies (FMCS) in South East Nigeria. Equipment hiring centers should be established in farming regions to facilitate and accelerate rice farming; members of Farmers Multipurpose Cooperative Societies should be trained constantly by Cooperative Officers so as to impact them with skills on how to sell their outputs profitable; also policies that make farm lands available to young farmer, as well as women farmers should be made available. Since the study reveals that age, gender as well as farm size significantly influences rice output; the management of Farmers Multipurpose Cooperative Societies (FMCS) in South-East, Nigeria should key into the single digit interest loan facilities facilitated by the Central Bank of Nigeria in conjunction with Bank of Agriculture, Bank of Industry, Microfinance Banks, as well as other financial institutions, to access capital for rice farming so as to mitigate inherent constraints involved in the farming process.