Economics of Rubber Production: Empirical Evidence from Ilushin and Waterside Rubber Estates, Ogun State, Nigeria

The study was carried out to appraise the economics of rubber production in rural Nigeria. Secondary data were used for the study. The data collected were analysed using budgetary analysis and multiple regression model. The Net Farm Profit of N176, 657.88 and N213, 105.71 per hectare for Ilushin Rubber Estate Limited (IREL) and Waterside Rubber Estate Limited (WAREL), respectively was an indication of the economic viability of rubber enterprise. The cost structure of the two rubber estates indicated that rubber enterprise requires huge capital outlay and is labour intensive. The results of the multiple regression revealed that labour input, transportation cost, maintenance cost, agrochemical and age of the tree were the determinants of rubber output. The study thus recommends the checking of the system of land acquisition in the country to enable potential investors venture into such a land demanding investment as rubber enterprise. Also, provision of sustainable credit is recommended as rubber enterprise is capital intensive. Lastly, existing policies on plantation establishment should be reviewed and enabling environment provided to ensure local consumption of rubber products.

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Journal Article
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Nigerian Journal of Agricultural Economics, Volume 03, Number 1
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 Record created 2018-02-05, last modified 2018-04-02

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