Abstract

The agricultural sector has always been an important component of the Republic of Cameroon. The production practices of small-scale farmers are synonymous with their production characteristics such as lack of extension services, low hectare due to tenurial rights, lack of storage facilities and low levels of innovations.

This has led to high potato prices and nutritional insecurity. What is the elasticity of production with respect to major inputs like land, labour and capital? The main goal of this study was to estimate the empirical production function and return to scale for potato.

Questionnaires were used to solicit technical and other substantial information for 70 farmers. The production function of potato was estimated using a multiple regression, ordinary least square techniques in two functional forms: the linear function and the power function.

The empirical results show that labour was being underutilized, land, seed, capital and extension service was efficiently allocated and the quantity of fertilizer was over utilized. It was further observed that these farmers experience Increasing returns to Scale in their production processes. This study concludes that there is room for improvement in potato production by redirection of inputs used.

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Accelerating agricultural growth remains one of the most important objectives policy makers face in less developed countries, where agricultural productivity is low, population growth rates are high and the ability to import food is severely constrained (Leggese et al., 2004).

The agricultural sector plays a critical role in the economy of developing countries.

The agricultural sector has always been an important component of the Republic of Cameroon. As of 2005 Cameroon workforce totaled an estimated 6.86 million of which 70% were engaged in the agricultural sector, the GDP was estimated to be 32.4 billion (CIA 2005).

In Cameroon agriculture accounts for as much as 30 percent of GDP and 62 percent of total exports (Amin, 2001). There has been an increased need for food crop production in order to feed the rapidly growing population and one of the major food crops which has become very important in the country is Irish Potatoes (Solanum tuberosum) .

Potato is a staple food in the developing and the developed countries which account for 37% of the total potato production in the world (FAO and CIP, 1995). It is the fourth most important food crop worldwide. In 2009, the world potato production area was 18 651 838 ha, and the amount produced was 325 302 445 tons (Jane Muthoni et al 2009).

A horticultural commodity such as Irish potato has the potential to contribute to household nutrition, food security and income (Kachule and Franzel, 2009). Irish potato is an important staple food as well as raw materials for industries.

In Cameroon today, this crop is cultivated in commercial quantities in the south west, North West and Western Regions. Potato yields are variable by region according to local conditions and management practices.

Generally one of the highest producing regions is the South West Region particularly in the Lebialem Division, where most commercial farms are located with significant small scale subsistence Irish potato farming.

Yields of potatoes grown in intercropping systems range widely, estimated in 2001 from 1.5 to 12 tons per hectare (T/HA), while potatoes grown in mono-cropped commercial farms ranged from 7 to 20 T/HA (Njualem, et. al 2012). However, yields as high as 46 tons per hectare have also been reported under conditions of chemical disease control and other intensive management practices (Basacier 1990, cited in Fontem et. al 2012).

Since nearly all potato production is consumed (imports and exports are negligible), consumption can be estimated by total production. The production estimate for 2001 provided by Fontemet. al., (435,354 tons), consumed by approximately 15,500,000 people (estimated also for 2001) averages out to just over 28 kilograms annual per capita consumption.

This is high by world standards, comparable to other countries in Africa where potato is an important crop (such as Kenya), but much less than comparable figures for some regions, such as the Andes or Central Europe. Cameroon’s workforce totaled an estimated 6.86 million, of which 70% were engaged in the agricultural sector (CIA 2005).

The South West Region has a surface area of about 24,923 km2 with 951 316 Ha under cultivation representing 38.2% of the area of the Region. The food crops grown in this region are varied and include cassava, plantains, cocoyams, maize and Irish potatoes. Rapid growth in the country’s population in the past few years has stimulated a greater production of food both for local consumption and for export.

Food such as Irish potato has become one of the most important food crops in the country and its production has been growing steadily. Irish potato (Solanum tuberosum) is said to have originated from the highlands of Bolivia in South America (Martin and Leonard, 1949; Ifenkwe and Nwokocha, 1987).

In order to meet the demand for industrial and human consumption, the yield per hectare needs to be improved. Such imminent improvement could be achieved through efficient management and monitoring of agro-climatic parameters, among others.

Potato has the potential to relieve pressure of food insecurity on the rural poor farmers since the crop has a short maturity period. It matures in about 60 to 90 days, giving it the advantage of being cultivated two to three times a year (Okunade and Ibrahim, 2011).The South West Region of Cameroon is a productive agricultural region, extremely diverse in soils and climates.

Even though the region has this huge agricultural potential, there is a big gap between potential production and actual food production in the region.

This calls into question the efficiency of the food production process amongst small scale farmers who form a bulk of food crop producers in this part of the country.

1.2 Problem Statement

The production practices of small-scale farmers are synonymous with their production characteristics such as lack of extension services, low hectare due to tenurial rights, lack of storage facilities, low levels of innovations and other production inputs. This has led to high potato prices, low income, and nutritional insecurity, reduced consumption and consequently reduced living standards. Amongst others, some of the major problems faced by potato farmers in the South West Region include:

1. a) Seasonality in potato Production: Potato production is characterized by rapid and significant fluctuations in supply and demand. Most farmers produce potatoes twice a year due to bimodal rainfall patterns in most potato growing areas. Long rains season occurs from March/April to June/July with the short rains season occurring in October to December. Off-season potato production is limited to a few areas such as Lebialem Division where there is sufficient irrigation. This limits profitability in potato farming as majority of farmers depend on rainfall leading to glut and lean times consecutively
2. b) Low soil fertility: The major constraint to potato production in the South West Region is the rapid decline in soil fertility occasioned by continuous cultivation without adequate replenishment of mined nutrients. Due to small land sizes, farmers continuously plant crops on the same land, practicing intensive cropping systems that mainly involve double and relay cropping of different crops without a fallow period (Kaguongo et al, 2008).Fertilizer is mostly applied below the recommended rate of (90 kgN/ha + 230 P2O5/ha) (Kaguongo et al., 2008).Additionally, most farmers intercrop potatoes with either cabbage or carrot often with no additional fertilizers.
3. c) Lack of certified seeds: There is inadequate supply of certified seeds to the extent that farmers almost solely depend on informal seed sources (farm-saved, local markets or neighbors).

Self-supply is the major source of seed for most farmers (Kaguongo et al., 2008). Institute for Agricultural Research and Development (IRAD), being the sole source of clean basic seed in Cameroon, its physical and human capacity is limited as it struggles with the double mandate of research and commercial basic seed production. It is handicapped by institutional arrangement in which there are very little incentives for increased productivity and efficiency. The concept of certified seed is not clear to most farmers and most people believe that when productivity of a variety decreases then the variety is “used to” or “too familiar” to the soil. They then usually buy seed from another area, exchange their seed with their neighbors or try and change the location of their potato plot

1. d) High cost of inputs: High cost of inputs especially seeds; fungicides and fertilizers greatly limit potatoes production. This leads to under application of fungicides and fertilizers and coupled with poor quality seeds, the net returns to the farmer are minimal. The interaction of these factors is captured in the figure below.

Given the problems raised above, the following research questions could be raised:

1. What is the Production function of potato production?
2. What is the elasticity of production with respect to major inputs like land, labour and capital?
3. What is the nature of the Return to Scale and input use for the production of potatoes?

1.3 Research Goals and Objectives

The main goal of this study is to estimate the empirical production function and return to scale for potato. To achieve the main goal, the specific objectives include:

1. To determine the production function of potato
2. To estimate the elasticity of production with respect to major inputs like land, labour and capital
3. To examine the nature of the Return to Scale and input use for the production of potatoes
4. To make recommendations base on the findings of the study

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