AKSU Journal of Agricultural Economics, Extension and Rural Development

ECONOMICS OF PEPPER (Capsicum species) PRODUCTION IN AKWA IBOM STATE, NIGERIA

Author:  Ubokudom Etim Okon

Abstract
Pepper holds significant economic, nutritional, and medicinal value in Nigeria, contributing to food security, income generation, and export earnings. Despite its importance, pepper production in southern Nigeria, particularly in Akwa Ibom State, faces challenges such as low productivity, price fluctuations, and input constraints. This study examines the economics of pepper production in Akwa Ibom State, Nigeria. Using primary data collected from 90 pepper farmers through structured questionnaires. The results showed that pepper farming is predominantly undertaken by females (53.3%), married (33.6%) with a mean age of about 51 years, the majority (86.7%) had primary education and small household sizes. Despite a mean farming experience of 9.5 years, cooperative participation is low, limiting access to resources and information. The study found that pepper production is efficient in labour and material input utilization, with a profit margin percentage of 78.12%. The total costs were N177,557.11, with returns of N811,599.75, indicating profitability and viability. The cost of seedlings, cost of organic and inorganic fertilizer were significant factors influencing profitability of pepper production. However, challenges such as high input costs, particularly for labour and herbicides, influence profitability. Probit regression analysis cost of seedlings, cost of organic and inorganic fertilizer as significant factors influencing pepper profitability. Constraints faced by farmers include the high cost and scarcity of quality seeds, pests and diseases, high labour and irrigation costs, theft, storage problems, and market-related challenges. The research suggests that enhancing access to high-quality seeds, bolstering pest management strategies, fortifying market connections, and investing in infrastructure and farmer cooperatives are crucial steps to mitigate production challenges and bolster resilience.