Competitiveness and Effects of Policies on Plantain Production Systems in Southwestern Nigeria
No 4/2014, December
Abstract
Plantain is one of the most important staple crops in Nigeria and has the potential to contribute to food security and economic development of the country. There is inadequate information on competitiveness, comparative advantage and effects of government policies on the commodity. The study therefore analyzed competitiveness and effects of government policies on plantain production systems in Southwestern Nigeria. Primary data were collected using structured questionnaire from 260 producers randomly selected from major production areas in the zone. Secondary data on port charges and world prices were also utilized. Data were analyzed using Policy Analysis Matrix (PAM). Results indicated that plantain production was privately and socially profitable in all the productions systems. Domestic resource cost ratio of 0.16 – 0.19 and social cost benefit ratio of 0.20-0.23 revealed that southwestern Nigeria had comparative advantage in the production of the commodity. The policy indicators and incentives structure such as the nominal protection coefficient on output (0.31-0.42) and input (1.02-1.04), effective protection coefficient (0.26-0.37), profitability coefficient (0.21- 0.32), subsidy ratio to produces (-0.51 to -0.62) and producers subsidy estimate (-1.70 to -2.02) showed that the producers were taxed and there exists transfers of resources from the systems. The study recommends formulation of policies which are consistent with the country’s goals of agricultural transformation, food security and economic development.
Keywords
Plantain, competitiveness, policy incentives, Southwestern Nigeria.