AKSU Journal of Agricultural Economics, Extension and Rural Development

ANALYSIS OF INCOME INEQUALITY AMONG COCOA FARMERS IN ABIA STATE, NIGERIA

Author:  Kanu, Ifeanyi. M and Amusa, Taofeeq. A

Abstract
The study examined income inequality among cocoa farmers in three major cocoa producing Local Government Areas of Abia Stata, Nigeria. A total of 90 cocoa farm households were selected for the study in the ratio of 30 each from Ikwuano, Umuahia North and Bende Local Government Areas, respectively. Data were analyzed using descriptive statistics, Lorenze curve as well as the Gini Coefficient Index. Findings revealed that the major sources of funding available to cocoa farmers were equity/personal savings (76.67%), friends/ relatives (13.33%), bank loan (4.44%), cooperative organization (1.11%) and others (4.44%). Result of the income inequality analysis revealed a Gini Coefficient (GC) of 0.4243 in the study area (pooled), denoting that there was high inequality in income among cocoa farmers in the study area. Further breakdown of this analysis showed that income inequality was more severe in Umuahia North LGA (GC = 0.4458), followed by Bende LGA (GC = 0.3535 and was less severe in Ikwano LGA (GC = 0.3075). Findings further showed that the major constraints to cocoa production were lack of credit facilities (94.44%), poor road network (91.11%), higher cost of field maintenance and spray (84.44%), lack of access to marketing information (65.56%), high cost of nursery establishment (58.89%), pest and diseases problems (55.55%), high cost of labour, (53.33%), planting of low yielding varieties (47.78%) and limited land for expansion and soil infertility (45.56%). The study recommended the adoption of policies that will encourage farmers to venture into large scale cocoa farming such as formation of farmer’s union as avenue to minimize income inequality in the study area.