ASSESSMENT OF POVERTY STATUS AMONG COCOA FARMERS IN OSUN STATE OF NIGERIA

Abstract

There has been an increase in the level of poverty in Nigeria over the past years and the people living in rural areas who are mostly engaged in agriculture are more affected. This study examined poverty status of cocoa farming households in Osun State, Southwest Nigeria as well as examined some of the farm and farmer characteristics that affect poverty among the farmers. Data were collected from 1200 cocoa farming households in four cocoa growing Local Government Areas of the state in 2009. The data were analysed using the FGT poverty indices and logistics regression. The international poverty line and double the national minimum wage in Nigeria were used as poverty threshold for determining poverty status. FGT results shows that 82% of the cocoa farmers were living below the international poverty line while 44% of them were earning less than the national minimum wage. Logistic regression results show that the number of complimentary crops cultivated by the farmers increased the log likelihood of being poor while literacy status and family size reduced it. With the current level of poverty in the cocoa economy, it may be difficult to attract young people with alternative sources of employment into cocoa farming. Increasing literacy level among cocoa farmers, specialisation in a few complimentary of crops and the introduction of labour saving technologies that will reduce the extent of dependence on family labour will help to reduce poverty among cocoa farmers.