Analysis of the Profitability of Pepper Production and Varieties Grown among Smallholder Farmers in Benue State, Nigeria

Abstract

Pepper cultivation provides an income opportunity for smallholder farmers, but information on the varieties grown, production practices and farm-level profitability in Benue State, Nigeria, remains limited. The study analysed the profitability of pepper production and varieties grown among smallholder farmers in Benue State, Nigeria. The study provided an opportunity to determine the profitability of pepper production, assess the planting methods or production practices, identify the varieties of pepper grown, the factors influencing the adoption of hybrid varieties of pepper and the constraints on pepper production in the study area. A multistage sampling technique was employed in the selection of 240 respondents for the study. Data were collected using a structured questionnaire administered to the respondents in the study area. The data collected were analysed using descriptive statistics and budgetary analysis. The findings on socio-economic characteristics of the respondents revealed that the majority (63.4%) of the sampled respondents were aged 31–60 years, with a mean age of 41.7 years, 67.5% were females, 67.1% were married, 76.7% had more than five years of farming experience, with an average farming experience of 11 years, 52.5% had household sizes greater than six persons, the mean household size was 7.2, 81.7% had received some form of formal education, the mean monthly income was ₦77,791.67 (USD 58.57) per household head, and 55.4% of the respondents were members of cooperatives. Pepper growers in the study area cultivated a mean farm size of 1.1 hectares, majority (57.5%) practised intercropping, 50.0% engaged in pepper farming to generate income and meet family needs, 85.5% used agrochemicals in pepper farming, 76.7% planted one seed per hole, 51.3% of land used for pepper farming was sourced from family holdings. The commonly grown pepper varieties in the study area were: Atarodo (77.5%), Bird's eye chili (72.5%), Sombo (70.0%), Tatashe (65.0%) and Habanero (60.0%). The main factors influencing the adoption of hybrid pepper varieties in the study area include: the cycle of seed saving (78.8%), high initial cost of seeds (73.8%), capital-intensive input packages (71.3%), lack of rural irrigation infrastructure (66.3%), complexity of management (61.3%), weak extension-to-farmer network (58.8%) and perceived market and processing misalignment (57.5%). Pepper production was profitable in the study area with the intercrop grower earning a profit of ₦445,349.39 (335.31 USD) per hectare per season, while the sole-crop grower earning a profit of ₦435,658.70 (328.02 USD) per hectare per season. The rates of return of 1.91 and 2.09 for pepper-intercrop and pepper-sole crop enterprises implies every ₦1.00 invested in pepper production generates revenues of ₦1.91 and ₦2.09 for the intercrop and sole crop pepper growers respectively. The major constraints in pepper production in the study area include: pests and diseases, poor quality seeds, lack of technical knowledge, high costs and insecurity, perishability and seasonality as well as limited government support. The study recommended that the Federal and State Governments should devise and implement policies to provide financial assistance, incentives, empowerment programmes and training with minimal or no collateral requirements and reasonable repayment periods to encourage pepper production in the study area.