Produce certification and income risk management strategies of cocoa farming households in South-West Nigeria

• Main Authors: A. B. Oreyemi, R. A. Sanusi, L. O. Okojie, A. O. Olaiya, D. Akerele
• Format: Article
• Language: English
• Published: University of Debrecen 2015-09-01
• Series: Apstract: Applied Studies in Agribusiness and Commerce
• Subjects: cocoa; produce certification; South-west Nigeria; household; income risk
• Online Access: https://ojs.lib.unideb.hu/apstract/article/view/6568

Agricultural produce certification is synonymous to farm assurance of which cocoa certification is an example; dealing with issues of Good Agricultural, Environmental and Social Practices (GAP, GEP and GSP) in cocoa production. Essentially, GAP, GEP and GSP packages had in-built mechanism that can aid farmers mitigate factors that could lead to farm income risks in cocoa production. Consequently, this study examined the influence of cocoa certification on income risks of cocoa farming households in South-west Nigeria. A multistage sampling technique was used to select 180 cocoa farming households from whose heads data were obtained with interview schedule in Southwest Nigeria. Data were analyzed with Chi-square Statistic, Income Risk Management Diversification Index (IRD) and Mann-Whitney-U Test Statistic. Chi-square analysis shows that (52.3%) certified cocoa farming households employed more risk management strategies than (94.2%) uncertified cocoa farming households (p<0.01). The Mann-Whitney-U test revealed a significant difference (p>0.05) between the income risk management practices of certified and uncertified cocoa farming households. Therefore, produce certification has been helping cocoa farming households in mitigating farm income risk in cocoa production through the employment of diverse (risk) management strategies. Hence, stakeholders should intensify efforts in encouraging farming households to embrace (cocoa) produce certification.