EFFECTIVENESS OF OUTGROWER SCHEME AMONG CASSAVA FARMERS IN SOUTHWESTERN NIGERIA

Abstract

Nigeria is the world’s largest cassava producer, but most of the smallholderproducers recurrently face product glut. Outgrower scheme is often deployed to serve as a link between producers and users of agricultural commodities and a platform to address associated market problems. Studies on effectiveness of outgrower scheme for cassava enterprise in Nigeria are scanty. Hence, effectiveness of Cassava OutgrowerScheme (COS) in Southwestern Nigeria was assessed. A three-stage sampling procedure was used.Ogun, Ondo and OyoStates were purposively selected based on pre-dominance of cassava user-companies.Seven major user-companies: from Ogun (5), from Ondo (1) and from Oyo (1) were purposively selected. One hundred and sixty six farmers from user-companies’ outgrower clusters, 83 non-outgrowersand 55 discontinued ougrowerswere randomlyselected. Interview schedule was used to elicit information on respondents’ personal and farming characteristics, cassava operational and market structure, constraints faced in COS, perception about COS, conformity to COS agreements and participation in COS, benefits derived, non-outgrowers’ access to production services and effectiveness of COS (guaranteed market, access to farm input, extension service). Indices of participation (low, 0.0-8.9; high, 9.0-18.0), perception (unfavourable, 50.0-77.7; favourable, 77.8-95.0) and effectiveness (low, 1.00-1.54; high, 1.55-2.00) of COS were generated. Data were analysed using descriptive statistics,Pearson Product Moment Correlation, ANOVA and Logit regression at α0.05. Outgrowers and non-outgrowerswere aged 47.5±10.4and 48.9±14.1 years, respectively. Most outgrowers (93.3%) and non-outgrowers (97.2%) were married with cassava yield of 19.9±3.8and 18.6±3.4tonnes/ha, respectively. Most outgrowers (75.6%) and non-outgrowers (81.7%) were male. User-companies had policies and defined operational structure guiding COS,while various modes of cassava market existed in the study area aside user-companies’ outlets. Under-pricing during glut (1.8±0.4), unilateral decision by user-companies(1.8±0.6) and breach of agreements from both parties (1.7±0.6)weremajor constraints faced by COS.Outgrowers (61.6%)had high level of participation in COSand most (65.2%) had favourable perception towards COS. Benefits derived includedstable market (0.9±0.1), exposure to improved technologies (0.8±0.5) and higher access toagri-support services (0.7±0.5).However, most (64.8%) non-outgrowers had low access to agri-support services. Outgrowers had higher access to all parameters of effectiveness such as land preparation (1.8±1.8), input provision (0.4±0.5), production services (0.2±0.3), financial support (0.5±0.2), extension service (0.7±0.5), harvest and post-harvest support (0.7±0.9), guaranteed market (0.8±0.4) and linkages (0.7±0.4) compared to 1.2±2.1, 0.2±0.4, 0.1±0.3, 0.1±0.4, 0.6±0.5, 0.2±0.4, 0.5±0.5 and 0.4±0.4, respectively for non-outgrowers.Discontinuance in the scheme was caused by poor concern for outgrowers and field workers’ dishonesty. Conformity of user-companies (r=0.649) andoutgrowers’perception (r=0.674) positively correlated with effectiveness of COS. Respondents’ sex (β=4.094), ready market (β=4.823) and increased income (β=3.645) had significant relationships with likelihood to participate in COS, while COS effectiveness rating was influenced by extension provision (β=0.98), guaranteed market (β=0.251), input access (β=0.308), perceived change in productivity (β=0.249) and conformity to scheme agreements (β=0.107). Cassava outgrowerschemewas effective in Southwestern Nigeria. The effectiveness of cassava outgrower scheme was enhanced byextension provision, guaranteed market, input access, perceived change in productivity and conformity to scheme agreements.