Comparative Cost - Benefit Analysis of Fresh and Seed Okro Production at Kpando in the Volta Region

Abstract

Okro is an important crop in the diet of many Ghanaians and the economy of Ghana. Fresh okro contains some amount of protein, carbohydrates, vitamins A and C with traces of B vitamins, as well as calcium phosphorus and iron. The problems of removal of subsidies on agricultural inputs, poor market price of fresh okro, and nematode problem had resulted in low net income from fresh okro enterprise. Although Ghana has a high potential of producing both fresh and seed okro, most farmers are currently in the production of fresh okro. Farmers take into consideration the relative profitability of alternative enterprises open to them before selecting those to invest in. This present study compares the costs and benefits as well as the profitability of fresh and seed okro production. Data were collected through the use of structured questionnaires administered to ninety farmers. The profitability of the enterprises were compared, using net income, benefit-cost ratio, and return on sale concepts. Sensitivity analysis was carried out to take care of risk and uncertainties on the conclusions drawn on the acceptability of the enterprises. The study revealed that fresh production cost lesser than seed okro production per unit. Although both fresh and seed okro production are profitable, seed okro production is more profitable than fresh okro in the rainy season. Dry season fresh okro fruits production reaps higher returns than rainy season fresh okro fruits production. Major constraints in okro production are attributed to increasing pests and diseases, high cost of agro-chemical and poor market price. In the light of the above findings of the present study, it was recommended that extension education be intensified eradicate the major constraints to okro production so as to increase the net income.