Assessment of Agricultural Credit Sources for Cocoa Marketers in Gbonyin Local Government Area, Ekiti State, Nigeria

Abstract

This study analyzed the sources of agricultural credit available to cocoa marketers in Gbonyin Local Government Area, Ekiti State, Nigeria. A multi-stage sampling technique was employed to select respondents from various communities. Six communities were chosen through random sampling. Subsequently, 20 cocoa marketers were randomly chosen from each of the six selected communities, resulting in a total sample size of 120 respondents. Primary data were collected using a well-structured questionnaire. The data were analyzed using descriptive statistics, exponential regression analysis, and logistic regression analysis. The findings revealed that the average age of cocoa marketers was 42.3 years, with 84.2% being male. The average household size was 7, and 84.2% of respondents were married. Additionally, 75.8% of the marketers were literate, possessing at least a secondary school education, and had more than 10 years of marketing experience. A significant proportion (66.7%) operated large-scale businesses, while 45% sourced credit from cooperative societies, which emerged as the primary source of agricultural credit for cocoa marketers in the study area. Exponential regression analysis indicated that educational level, marketing experience, and business size significantly influenced the amount of credit accessed by the marketers. Logistic regression analysis further identified marketing experience, business size, and savings levels as key factors determining the marketers' ability to secure sufficient funding. The study also highlighted major constraints faced by cocoa marketers, including the absence of guarantors and collateral, inadequate access to information, high interest rates, poor record-keeping, and the inconvenient locations of financial institutions. To address these challenges, it is recommended that cocoa marketers form cooperative societies to enhance their access to credit. Financial institutions should develop market-friendly loan schemes, while extension officers and research institutes should provide training on credit management and regulatory compliance. Additionally, the Government should invest in sustainable credit programs to support cocoa marketers effectively.