ECONOMICS OF CHILLI PEPPER PRODUCTION IN JERE LOCAL GOVERNMENT AREA, BORNO STATE, NIGERIA

Abstract

The study analyzed the economics of chilli pepper production in Jere Local Government Area of Borno State. One hundred and fifty-four Chilli pepper farmers were selected randomly and interviewed for the study using a structured questionnaire. The data collected were analyzed using descriptive statistics, gross margin and multiple regression analysis. The results show that majority (70%) of the respondents were within the age bracket of between 26-40 years with majority (86%) being male and married. The result also show that 52% had primary education, 36 % had secondary education while only 2% had tertiary education with majority (68%) of the respondents having a household size of between 5-15 people per household. The result further revealed that majority (60%) of the respondents makes use of their personal savings, while 4% had access to credits. The result on profitability analysis revealed the total revenue per hectare, gross margin and the return on naira invested of the Chilli farmers in the study area as ₦404,000, ₦293,020.00 and ₦3.64 respectively. Furthermore, labour cost account about 30.2% of the total variable cost, followed by the cost of harvesting operation covering about 18.7% and cost of fertilizer 16.8%, the remaining variable cost account for the remaining 34.3% The result of the regression analysis revealed that quantity of seed, quantity of fertilizer use, labour in man-days and quantity of pesticide were the significant factors determining the production of chili pepper. The study concluded that Chilli production is profitable business in the study area going the level of return per Naira invested. Weeds, pests, high cost of transportation and inadequate storage facilities were the major problems encountered by the Chilli Pepper farmers. The study therefore recommend that government and NGOs should come up with policy that will address issues affecting the production by providing good storage facilities.