ABSTRACT

The principal objective of the study is to examine the demand for fertilizer by small—holder arable crop farmers in Ikwuano Local Government Area of Abia State with a view to identifying major constraints to demand for fertilizer and making recommendations based on findings. Primary and secondary data were used in the study. Primary data were collected from a random sample of 114 farmers using structured questionnaires. Secondary data were collected from relevant dissertations of post graduate students and publications and records of NAFCON and the Abia State ADP. The multiple regression model was used to evaluate the determinants of demand for fertilizers. The following are the major findings: 1. Over 97 percent of •the sample farmers use fertilizers; ii. Fertilizer was available in the local markets and neighbouring markets beside other sources of supply; iii. Income, farm size and access to credit were significant and positive determinants of fertilizer demand by farmers. iv. The mean quantity of fertilizer demanded was 187: kg for farmers who had access to credit and 50.3 kg for those who did not receive credit. It is recommended that measures be taken to raise the farmers farm vii credit. Increased access to credit could be achieved by charging relatively low interest rates and strengthening informal credit sources through the promotion of co-operatives. To facilitate the distribution and uses of fertilizers, the extension service, should be strengthened by employing more agents who would train and supervise farmers in the use of fertilizers.

TABLE OF CONTENT

TITLE PAGE : i

CERTIFICATION ii

DEDICATION iii

ACKNOWLEDGEMENT iv

ABSTRACT vi

TABLE OF CONTENT

LIST OF TABLES Xi

CHAPTER ONE

1.0 INTRODUCTION 1

1.1 Background Information 1

1.2 Statement of Research Problem 2

1.3 Research Objectives 3

1.4 Hypothesis Testing 4

1.5 ustification for The Study 4

CHAPTER TWO

2.0 LITERATURE REVIEW 6

2.1 Demand and its Determiants 6

2.1.1 Nature and Determinarts of Demand - 6

2.1.2 Estimation of demand Functions 7

2.2 History of Fertilizer Use In Nigeria 7

2.3 The Role of Fertilizer in Nigeria Agriculture .

2.4 Fertilizer ?"ly And Distribution In Nigeria 10

2.4.1 The Na':e of Fertilizer Supply And Distribution

Diio cbi-ins Th 4c 1jzer Deniarid

and Use of Farurs 12

2.5 Fertilizer Policy Issues : 14

2.6 Fertilizer Subsidy 16

2.6.1 Fertilizer Subsidy Components and Levels• 16

2.6.2 The Role of Fertilizer Subsidy 17

2,6.3 Busis of The Undue Attention Towards. 18

Fertilizer Subsidy

2.7 Definition of Fertilizer, Smaliholder Farmer and

Arable Crops. .. 20

CHAPTER TfflEE

3.0 METHODOLOGY 21

3.1 Study Area• 21

3.2 Sampling Procedure . 22

3.2.1 Sampling for Location . 22

3.2.2 Sampling for Respondents . 22

3.3 Data Collection 22

3.4 Analytical Technique 1 23

CHAPTER FOUR

4.0 DATA PRESENTATION AND DISCUSSION 25

4.1 Socio-economic Characteristics of The Respondents . 25

4.1. Age of Farmers 25

4.1.2 Farm Size 26

4.1.3 Income Distribution 26

4.1.4 Household Size 27

4.1.5 Access To Gredit 28

4.2 Fertilizer Avaiiãbilty and Source of Purchase: 28

4.3 Determination of Level of Fertilizer Use s z s•" 31

4.4 Results of The Hypothesis Tested

4.5 Determinants of Fertilizer Demand by Farmers 33

4.6 Determination of Elasticities of Demand 36

CUAPTER FIVE

5.0 SuMMARY, CONCLUSION AND RECOMMENDATION 38

5.1 Summary• 38

5.2 Conclusion 39

5.3 Recommendation• 40

REFERENCES

APPENDICES