Agricultural Economics
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Browsing Agricultural Economics by Author "Ajetomobi, Joshua Olusegun"
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- ItemMarket Power in Nigerian Domestic Cocoa Supply Chain(African Economic Research consortium, 2015-03-03) Ajetomobi, Joshua OlusegunAn efficient and integrated cocoa market in Nigeria is important if the nation is going to successfully compete with regional cocoa producers such as Cote d’Ivoire and Ghana in the international markets. At present, Nigeria produces just about 6% of the global production, while Cote d’Ivoire produces about 43% and Ghana 14%. This study, therefore, is an attempt to examine whether cocoa market liberalization reform in Nigeria has achieved its stated objective of increasing the efficiency of the cocoa supply chain. A common indicator of efficient and functioning markets is the presence of high level of integration among them; while lack of integration could be an indication of private traders’ market power tendency. The analyses are based on annual aggregate and monthly cocoa price data and done within error correction and cointegration model framework. The results indicate both vertical and horizontal integration of various markets along Nigerian cocoa supply chain. In specific terms, the results show that (i) there is no tendency towards non-competitive behaviour by major cocoa exporters in Nigeria who now interface between the world and domestic cocoa markets, and (ii) export price series closely follows world price series, while farm gate price closely follows export in the long run. In addition, the source markets are well integrated. The speed of adjustment towards long-run equilibrium, however, varies with the position of the market along the supply chain.
- ItemSupply Response, Risk and Institutional Change in Nigerian Agriculture(African Economic Research consortium, 2010-05-17) Ajetomobi, Joshua OlusegunNigeria is among many African countries that have engaged in agricultural liberalization since 1986 in the hope that reforms emphasizing price incentives will encourage producers to respond. Hitherto, the reforms seem to have introduced greater uncertainty into the market given increasing rates of price volatility. This study therefore models supply responses in Nigerian agriculture that include the standard arguments as well as price risk. The data come from the AGROSTAT system of the statistical division of the Food and Agriculture Organization (FAO), Federal Ministry of Agriculture statistical bulletins, Central Bank of Nigeria statistical bulletins, Federal Office of Statistics Agricultural Survey Manual and the World Bank Africa Development Indicators. The data are analysed using autoregressive distributed lag and error correction models. The results indicate that producers are more responsive not only to price but to price risk and exchange rate in the structural adjustment programme (SAP) period than in the commodity marketing board (CMB) period. Following deregulation, price risk needs to be meaningfully reduced for pulse and export crops, especially cowpea and cocoa.
- ItemTotal Factor Productivity of Agricultural Commodities in the Economic Community of West African States: 1961-2005(AERC, 2012-12) Ajetomobi, Joshua OlusegunThis study examines total factor productivity growth and its decomposition for rice, cotton and millet producing countries in ECOWAS. The productivity measures were estimated using Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA). The data cover a 45-year period (1961-2005) separated into pre-ECOWAS (1961-1978) and ECOWAS (1979-2005) periods in order to study the effects of ECOWAS reforms on productivity growth of the selected crops. Calculations are based on data collected from FAOSTAT database, International Rice Research Institute (IRRI) world rice statistics, and International Cotton Advisory Committee database. The data include output of each crop (rice, cotton and millet) and seven input variables comprising land area, labour, seed, fertilizer, tractor use, irrigation and country dummies. The results for both SFA and DEA show that: (i) there are inefficiencies but productivity progress among ECOWAS member nations producing rice, cotton and millet; (ii) though magnitudes of the inefficiencies and productivity progress vary across models applied and by segmentation of the data set, there is little or no conflict in the overall results; (iii) technical change has had the greatest impact on productivity, indicating that producers have a tendency to catch up with the front runners; and (iv) the total factor productivity in ECOWAS and pre-ECOWAS sub-period differ across crops depending on the models applied. In general, policy makers should try not to be indifferent with respect to the approach used for efficiency and productivity measurement, as these may give different results.