Competitiveness of Nigerian Tea Production Using Policy Analysis Matrix Approach in Nigeria

Abstract

The assessment of competitiveness and comparative advantage of tea production management systems in Nigeria was carried out. Data were collected from the respondents with the aid of structured questionnaire designed with open data kit (ODK) and the data obtained from the questionnaire were analyzed using Descriptive analysis, Private Profitability, Private Cost Ratio, Social Profitability and Domestic Resource Cost. Result indicated that most of the farmers (39.2%) were in the age range between 41-50 years of age. Majority of the tea farmers in the study area were male (63.7%) and thus dominated the tea farming in the study area. Household size of 6-10 persons had the highest proportion of the farmers (45.1%) in tea production. It was also evident that greater number of the farmers (40.2%) obtained secondary education. The two production management systems (owner- managed and sharecropping) had positive private profitability while the PCR values was less than unity, thus implying competiveness. The social profitability of both production management systems was #492,176.83 and #728,579.99for owner-managed and sharecropping respectively, whiles the Social Cost Benefit (SCB) and Domestic Resource cost was less than one. There is an indication that tea production in Nigeria is competitive and has comparative advantage.