ECONOMIC ANALYSIS OF COCOA PRODUCTION CERTIFICATION STATUS AMONG FARMERS IN OGUN STATE, NIGERIA

Abstract

The study was conducted to analyse the economics of cocoa production certification status in Ogun State, Nigeria. Primary data were obtained from 240 cocoa farmers (120 certified and 120 non-certified) selected through a multistage sampling procedure. Descriptive statistics, gross margin analysis, and a 5-point Likert scale were employed for the study. Results revealed that cocoa farming in the study area is dominated by middle-aged men, with certified farmers achieving higher education levels, better access to extension services, and greater productivity (643.5 kg vs. 496.02 kg) despite non-certified farmers having larger farm sizes and higher average incomes. Cost and return analysis showed that certified farmers incurred lower variable costs (₦758,532.63 vs. ₦932,910.90) and recorded higher profitability, with a gross margin ratio of 0.91 compared to 0.85 for non-certified farmers. Major constraints faced by certified farmers included scarcity of labour, pest and disease incidence, and the strenuous certification process, while non-certified farmers identified high certification costs, complex procedures, and herdsmen attacks as their most severe challenges. The study concludes that certification improves productivity, efficiency, and access to institutional support, though income gains remain mixed. It recommends strengthening extension services, improving credit access, subsidizing certification costs, and promoting farmer cooperatives to enhance sustainable cocoa production in the state.