Agricutural value chain optimisation in a turbulent economy: A study of smallholder farmers in Nigeria




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De Montfort University


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Peer reviewed


This study aims to uncover the factors that impact agricultural value chain optimisation for small-holder farmers in Nigeria amidst economic instability. The study was conducted in the south-west, north-central, and core northern regions of Nigeria, which were selected for their suitability for cashew and sesame production respectively, taking into, account the crops’ requirements and environmental conditions. The data used in this study was obtained from primary sources which include structured questionnaires administered to 450 respondents and key informant interviews. Using Stata, the collected data was analysed using descriptive statistics and econometric models. A two-stage least square regression analysis was conducted to explore the factors that contribute to the optimisation of cashew and sesame value chain, and a multiple linear regression model was employed to examine the variables impacting production costs. The findings of the study indicated that household head's age, educational level, cashew yield, cultivated area, and economic instability are crucial factors that influence the optimisation of the value chain for small-scale cashew farmers; the size of the household, monthly income, years of farming experience, sesame yield, land area dedicated to sesame cultivation, and inflation rate has a crucial impact on the value chain optimisation of small-holder sesame farmers. Additionally, the age of the head of the household, literacy level, monthly income, purchasing cost of better seeds, farming equipment, production inputs, and the cost of inbound and outbound logistics are significant contributors to the total production cost for cashew farmers. Furthermore, this study found that monthly income, cost of improved seeds, fertilizers, and labour play a significant role in determining the production cost of sesame farming during economic instability. In conclusion, this study emphasises the significance of the aforementioned factors in enhancing the agricultural value chain for small-scale farmers in Nigeria. These results hold significant meaning for policy makers as they can draw insights from this study to develop and implement targeted initiatives aimed at enhancing the conditions of smallholder farmers.





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