ASSESSMENT OF THE PROFITABILITY OF IMPROVED AGRICULTURE AND ITS RELATIONSHIP TO POVERTY STATUS IN ABUJA, NIGERIA

TABLE OF CONTENTS

Title page
Table of content
Abstract

CHAPTER ONE
INTRODUCTION
1.1       Background to the Study
1.2       Problem Statement
1.3       Objectives of the study
1.4       Justification for the study
1.5       Research Hypotheses

CHAPTER TWO
LITERATURE REVIEW
2.1       Poverty Alleviation in Nigerian Context
2.2       Apiculture in Nigeria
2.3       Review of Empirical Studies n Beekeeping
2.4       Apiculture as a tool to enhance rural economy
2.5       Modern Apiculture
2.5.1    The use of modern bee hives
2.6       Review of the Analytical Tools
2.6.1    Theoretical basis of stochastic frontier model
2.6.2    Profitability of beekeeping farming activity

CHAPTER THREE
METHODOLOGY
3.1       Description of the study Area
3.2       Sampling procedures
3.3       Data Collection
3.4       Analytical Technique
3.4.1    Descriptive Statistics
3.4.2    Farm budgeting (net farm income)
3.4.3    Foster-greer-thorbecke‟s (FGT) weighted poverty index
3.4.4    Stochastic frontier model
3.4.5Pearson correlation analysis
3.4.6    z-statistic

CHAPTER FOUR
RESULTS AND DISCUSSION
4.1       Socio-economic Characteristics of the Respondents
4.1.1    Distribution of respondents based on Gender
4.1.2    Distribution of respondents based on marital status
4.1.3    Distribution of respondents based on age
4.1.4    Distribution of respondents based on educational status
4.1.5    Distribution of respondents based on household size
4.1.6    Distribution of respondents based on bee farming experience
4.1.7    Distribution of respondents based on membership of beekeeping cooperative
4.1.8    Distribution of respondents based on year of membership of beekeeping cooperative
4.1.9    Distribution of respondents based on access to credit
4.1.10  Distribution of respondents based on amount and sources of credit obtained
4.1.11  Distribution of respondents based access to agricultural extension
4.1.12  Distribution of respondents based on number of agricultural extension contact
4.1.13  Distribution of respondents based on number of beehives owned
4.2       Profitability of Beekeeping in the study Area
4.2.1    Test of hypothesis
4.3       Level of contribution of beekeeping to Household income
4.3.1    Household total income from beekeeping enterprise
4.3.2    Contribution of beekeeping products to total beekeeping income
4.3.3    Contribution of beekeeping enterprise to household total income
4.4       Economic Efficiency of Beekeeping in the Study Area
4.5       Impact of Beekeeping on the Poverty Status of the Beekeeping farmers
4.5.1    Test of hypothesis
4.6       Constraints Encountered in Beekeeping in the Study Area

CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1       Summary
5.2       Conclusion
5.3       Recommendations
5.4       Contribution to Knowledge
            References

ABSTRACT

The study was undertaken to assess the profitability of Improved Apiculture and its


Relationship to Poverty Status in Abuja, Nigeria”. A purposive sampling technique was used to purposively select 140 bee farmers from three area councils namely, Abaji, Bwari and Kwaliin the FCT. The data were analysed using descriptive statistics, Farm budgeting techniques, Foster-Greer Thorbecke (FGT) model, stochastic frontier model and Pearson correlation. Result revealed that all bee farmers in the study area were male and within the age bracket of 30-39 years with a mean age of 37. The average household size was 6. About 62.9% of the bee farmers had a secondary education, indicating that they are largely literates. The average years of farming experience was 4. About 62.9% of the farmers had contact with extension agents, about 35% had more than 40 beehives on their farm land. The calculated net farm income of beekeeping per hive of 0.7m2 in the study area was N32,514.56, also the returns to naira invested of 2.67 implies that for every N 1 invested in bee farming , a profit of N 1.67 was generated. The poverty gap index shows how far bee farming households are from the poverty line, it was estimated to be 0.39; this implies that the mean aggregate food and non-food consumption shortfall of the poor bee farmers relative to the poverty line across the whole population of bee farmers was 39% and the poor bee farmers are not too far away from the poverty line.The parameters of the stochastic frontier production function were estimated simultaneously with those of the model of inefficiency effects. Results indicated that all the variables were significant (P<0.01) except baiting material. The mean technical and allocative efficiencies were 81% and 64% respectively. Findings further revealed that none of the sampled beekeeping farms reached the frontier threshold.However, the average economic efficiency of the beekeeping farmers was 52%.The mean annual income of the beekeeping farmers from beekeeping (N30,9671.43) was higher than that of the beekeeping farmers income from on-farm activities (N162,212.86) and off-farm activities (N16,285.71) indicating that beekeeping contributing a higher proportion to the total income of the beekeeping farmers. Constraints highlighted were inadequate capital (69.3%), problem of theft (52.1%) amongst others. It was recommended that more extension agents should be trained on modern beekeeping so that they can effectively disseminate beekeeping information to the farmers. Beekeeping farmers should leverage beekeeping association as an avenue to access finance, inputs, technical information and market.

CHAPTER ONE
INTRODUCTION
1.1              Background to the Study
Apiculture (otherwise known as Beekeeping) is the art of rearing, breeding and managing honeybee colonies in artificial hives for economic gains (Ikediobiet al., 1985; Morse, 1989). It refers to the practice and management of the bees in the hives (Ojeleye, 1999; Shu‟aibet al., 2009), which leads to the production of valuable materials such as honey, beeswax, propolis, bee pollen, bee venom and royal jelly.
According to Oluwole (1999), modern bee keeping that entails housing the bees is not difficult to embark upon because investment is low, it does not require large area of land and water and there is no need for daily care. Beekeeping is an agricultural and forest based decentralized industry and does not displace persons from their villages. Bee keeping is a sustainable form of agriculture that can provide rural people with a source of much needed income and nutrition, therefore they have economic reasons to retain the natural habitat or modify it to boost honey production, and to increase yield of other agricultural products (Babatundeet al.,2007).

Poverty, on the other hand, is general scarcity, dearth, or the state of one who lacks a certain amount of material possessions or money.The poverty incidence in Nigeria increased from 65.6% in 1996 to 78.3% of the population in 2004 (FOS, 2004). Furthermore, the distribution of extreme poverty by occupational category indicates that 67.4% of thepoor in Nigeria were in agriculture (FOS, 1999). Its incidence rose from 27.2% in 1980 to 42.7% in 1992 and 69% in 2010 (NBS, 2012).Nigeria Human Development Index (HDI) value for 2011 was 0.459 in the low human development category, positioning the country at 156 out of 187 countries (UNDP, 2011) and in 2014; it was 0.471 positioning the country at 153 out of 187 countries (UNDP, 2014).
In order to reduce poverty situation in Nigeria, especially in the rural communities, apiculture (beekeeping) which is an aspect of agriculture is a self-reliance enterprise that should be considered; it could help to raise household income and reduce unemployment and other social vices associated with poverty (Ayansola, 2012). Beekeeping for honey production is a profitable agricultural enterprise nowadays in all parts of the world including Nigeria (Onwubuyaet al., 2013); there is a growing consumption of honey and other bee products because of its high values in maintaining good health and in treatment of various diseases ((Onwubuyaet al., 2013). But Nigeria usually meets domestic demand for honey mostly by importation from producer countries and local bee hunters (Ja‟Afarfuro 2007; Ayansola, 2012).With the current growth in domestic consumption of honey in Nigeria, the future of apicultural enterprise is very bright as the demand for honey and pollinators is bound to increase, it could provide food, nutritional, and livelihood security to the rural work force on an ecologically sustainable basis.

1.2 Problem Statement
Like in many developing countries, poverty in Nigeriais essentially a rural phenomenon as most of theimpoverished people live in the rural areas, where theyderive their livelihood from farming (Etimand Ukoha, 2010).Therefore, beekeeping has been identified as one of the agricultural enterprise that can be practised as a safety net against poverty, providing households with extra income from the sales of honey and other beehive products. The adoption of improved beekeeping technology by bee farmers as an aspect of agricultural enterprise is an option available to meet the culinary and industrial demands for bee honey and its products (Anyaegbunam, et al, 2006).
The importance of beekeeping to the society is enormous. For instance, Ojo (2004) describe the enterprise as a means of empowering youth economically because of its many advantages over other types of agricultural enterprises. The enterprise needs relatively small investment capital and most of the equipment needed for modern beekeeping can besourced locally. In beekeeping, the quality ofland required is less important because hives are placed either on the trees or on the ground. It isalso not competing with other enterprises for resources as the bees use nectar and pollengrains of plants.
The climatic information gathered depicts that the FCT has a vegetation and climatic condition that is favourable to beekeeping activities. The vegetation of the study area is of guinea, woodland and derived savannah, with trees like ParkiabiglobosaButyrospermumparkii, AzadiractaindicaMangiferaindica, Acacia species Delonixregia, and Anacardiumoccidentale. These species of trees provide forage for the honeybees, however despite this fact, these natural resources are not being maximally utilised; since the beefarmers are still living far from the poverty line. Also, bee keeping for wealth creation has practically remained untapped in the study area. Those already involved in beekeeping in the study area are not utilizing all the bee products but are mostly interested only in honey and bee wax extraction...

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