Abstract:
In the urban centres the demand for vegetable is not seasonal, necessitating a
year-round production heavily dependent on irrigation. This study was designed to
conduct a comparative economic analysis of formal and informal irrigated vegetable
farms in the Greater Accra Region. The analysis was based on farm management data
obtained from 60 respondents of the two vegetable irrigation systems respectively in
2001.
A budget analysis revealed that formal irrigated urban vegetable farming
employed larger quantities of all variable inputs than informal irrigated urban
vegetable farming. In addition, output per acre and profit was much higher on formal
farms than on informal farms, because formal farms obtained larger output by using
larger quantities of inputs at relatively lower unit costs.
Production function analysis showed that the technical efficiencies associated
with both farm types is factor-biased or neutral, and that technical efficiency is higher
on formal than on informal farm types. Both farm types were found to be allocatively
inefficient in the use of all the production resources considered in the study. In
relative terms, however, formal farms were more allocatively efficient in the use of
agrochemicals. The study also showed that farmers in the formal system underutilized
land, labour and agrochemicals, and overutilized irrigation service inputs. Informal
farm types underutilized fertilizer and agrochemical but overutilized miscellaneous
inputs (seeds and planting materials).
The higher technical efficiency and profit margins associated with formal
irrigated farms tend to support investments in irrigation infrastructure as a means of
increasing agricultural productivity and income to small-scale farmers. To exploit the
full potential of irrigation, farmers need a complete package of production inputs,
improved access to land as well as training on the operation, maintenance and repair
of irrigation equipment. To attain optimal resource allocation, formal irrigation farm
types need to increase their employment of labour, land and agrochemicals and reduce
irrigation services inputs. Informal farm types similarly need to increase the use of
fertilizer and agrochemicals while reducing their employment of high expenses on
seeds and planting materials and other miscellaneous inputs.
