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THE ADVERSE EFFECT OF FUEL SCARCITY ON FARM PRODUCE: A CASE STUDY OF OVIA SOUTH WEST LOCAL GOVERNMENT AREA OF EDO STATE
ABSTRACT
The research was carried out in the Ovia South West Local Government Area and data was also collected from some produce marketers such as Ehomike Food Venture, the Martye Green World venture, Ighile Mojo Farm, Okomu Oil Palm Company Plc, and Visco Farm Shop. The result gathered shows that there is a need for the government to ensure constant deregulation of fuel to every state and local government of the federation, regulating the rate of increasing fuel and arresting all forms and conditions that could easily lead to fuel scarcity which will have negative effects on farm produce. Finally, the result also shows that individuals have to desist from all forms of fuel hoarding and vandalization of fuel pipes could threaten the availability of fuel in circulation which could at least bring untold hardship to society by way of increasing the price of food as a result of the high cost of production and transportation from where it was produced to the market. It was recommended that the government should monitor marketers from diverting fuel met for our country to other countries, and also the government should build more refineries to ensure a surplus of fuel in circulation.
TABLE OF CONTENT
CHAPTER ONE
- Introduction
- Statement of problem
- The purpose of the study
- Hypothesis
- Scope of the study
- Background of the study
CHAPTER TWO
2.0 Review of related literature
CHAPTER THREE
3.0 Research methodology
3.1 Research Design
3.2 Population of the study
3.3 Sample of the study
3.4 Research instrument
3.5 Method of data collection
3.6 Method of Data Analysis
CHAPTER FOUR
4.1 Data Presentation
4.2 Data Analysis
CHAPTER FIVE:
5.0 Summary and Conclusion
5.1 Recommendation
BIBLIOGRAPHY
QUESTIONNAIRE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
This project aims to look into the adverse effect of fuel scarcity on farm produce as a case study in Ovia South East Local Government to make known to individuals and the government how much this development has taken it heavy toll on farm produce in both marketing and cultivation as well as how this trend can be put under control.
Until the early 70s the mainstay of Nigeria’s economy was Agriculture. Then the country (Nigeria) was famous for its proficiency in the production and exportation of groundnut, oil palm, cocoa beans, pepper, sugar cane, kola nut, bitter kola, cassava, and many other products. These products were known to be the only source of income for Nigeria.
Not until 15 January (1958) when oil was discovered in Nigeria specifically Okolobiri in Bayelsa state, did this discovery of oil in commercial quantity bring about a radical change in the economy of the nation (Nigeria) All other sectors seemed to have gone into extinction, indeed were abandoned therefore making the country to become dependent on crude oil for foreign exchange earnings, not agriculture anymore. But with about 166.2 million people in Nigeria today, it’s certain that man must eat, and clothe himself and will also need to satisfy one or more needs from farm products. For agriculturalists to carter for these numbers by producing food for sale, and reserving for the next planting seasons, the practice of producing food in bulk in agriculture must change from a mere subsistence farming system to mechanization. The term mechanization means the practice of agriculture by way of using modern machines to facilitate farm work and to maximize product within a short period.
It’s not gainsaying to say that modern farm machines depend on fuel to function because our modern global food system is highly oil-dependent even though petroleum is getting higher daily and becoming less and less affordable. And it’s also true that virtually every operation in agriculture depends on machines.
According to Normal.J. (2000) in a book titled “Eating Oil” he said that the modern commercial farm miracle that feeds all of us and much of the rest of the world is completely dependent on the flow, processing, and distribution of oil.
He further added oil refined for gasoline and diesel is critical to run the tractors, combines and other farm vehicles and equipment that plant, spray the herbicides and pesticides, harvest/ transport food and seed, and more Also, it’s all true virtually every operation carry out in nowadays agricultural practice depends on machines beginning from bush clearing, wood feeling, soil plugging, harrowing, fertilizer application, harvesting, application of pesticides, grading of products transportation and so many others areas. If these aforementioned areas suffered west back as a result of fuel scarcity, you will agree with me that at the of the day, nothing will be done to produce food or farm products that will be equal to Carter for the upsurge population, or if fuel that is supposed to be available and affordable to power these areas. Earlier mentioned is not easily gotten, or gotten at a very high cost, certainly, the little that will be produced at the end of the day as a result of fuel scarcity will now take its toll on the selling price. Even the farmers that do rely on their strength to produce food for sale will equally have their share of fuel scarcity as it will not go down well with the price of food production haven’t spent much money on transportation from farm to the market is expected that this development will hike up the price of produce supplied to the market and this will in no doubt bring.
What is scarcity? Adams Smith (1989) defines scarcity as the limited supply of resources that are used to the satisfaction of unlimited wants. With this, fuel scarcity can be defined as a limited supply of fuel that is used for the satisfaction of unlimited wants.
According to Lionel Robbins (1990), scarcity is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. The event of 2nd January 2012 substantiate the claim that fuel scarcity is no doubt one of the greatest factor that triggered the inflation of farm produce/products in the market today, following the pronouncement of the federal government of Nigeria that oil subsidy has been removed thereby bringing the price of fuel of 97 naira a liter as against the former pump price of 65 naira a liter. A few days after the subsidy was removed the price of produce/products skyrocketed live, chicken that was sold between 1,500 and 2000, now goes for between 3,000 and 4,500 live goats that used to be sold at 7,000 and 8,500 are now sold for between 15,000-18000 while a bag of rice that was formally sold for between 6,000-7,500 now goes for between 12,000-14,000 likewise many other farm produce/products had witnessed tremendous change in price up till now, all that goes up refuses to come down, and if they prove of fuel keep going up in the name manner, you will find out that almost all farm and agricultural produce/products will be price out of the reach of the common man and if nothing is done to check this situation on the ground, certain the common man on the street and the entire society will soon be engulfed in hardship.
1.2 STATEMENT OF THE PROBLEM
In recent times, fuel scarcity has become a strong determinant of the price of produce/products of agriculture in the market, With this, the government must take proactive measures to tackle fuel scarcity. Also, many people think that it is because many young people have refused to go into farming that is solely responsible for the daily increase in the price of food and other agricultural-related products but this research seeks to find out the adverse effect of fuel scarcity on agricultural products/produce and to suggest possible ways of profiling solutions on it.
The researcher intends to identify some areas that the government should keenly look into to avoid fuel scarcity, such as constant deregulation of fuel products to every state steadily to make the product available and affordable for the farmer who uses fuel for carrying out farming activities, to severely fight against the division of fuel products by fuel marketer and to set out a severe penalty against those who indulge in vandalizing fuel pipeline, which reduces the target of the nation and to also put in place measure to avoid people working in an oil-producing company from going on strike.
1.3 RESEARCH QUESTIONS
- Could there be a specific time of adverse effect on agricultural produce/products as a result of fuel scarcity?
- Does fuel scarcity affect the production of agricultural produce/products?
- Does fuel scarcity reduce the amount of farm produce?
- Does the increase in the transportation of food contribute to an increase in the selling price of food?
- Does modern agricultural practice depend on fuel?
- Does fuel scarcity increase the price of food?
1.4 PURPOSE OF THE STUDY
The main purpose of this study is to identify the problems associated with the increase in the price of agricultural produce/products in the market, It aaims met to identify ways to reduce this trend.
1.5 SIGNIFICANCE OF THE STUDY
This study or research will be of immense benefit to the government because if there is fuel scarcity. It then means that there will be an increase in the price of food produced/products in the agricultural sector.
The study hopes to provide insight to the government as to why they should stop increasing the price of fuel, When the cost of fuel is low, the cost of production and transportation will also be low and these can lead to the low prices of agricultural commodities being transported.
Moreover, it is hoped that information gathered from this research will propel the government to ensure constant deregulation of fuel, stop increasing fuel, waging war against oil bunkers and fuel hoarders, and explore every means to ensure the availability of fuel.
1.7 DEFINITION OF TERMS
Agriculture: Simply refers to the practice of tilling the soil to grow crops and the rearing of animals for man’s use.
Scarcity: This means a short supply of certain resources relating to demand at a given price.
Mechanization: This means the practice of agriculture by using modern machines to carry out farm operations to increase production and maximize profit.
Agricultural Produce: Refers to raw materials obtained from the farm (at its raw stage, not gone through the secondary stage).
Agricultural Products: This means agricultural produce that has passed through the raw stage to a second.
Hike: This means an increase in the cost of something.
Hoard: This means to secretly store valuable products or money for further use.
THE ADVERSE EFFECT OF FUEL SCARCITY ON FARM PRODUCE: A CASE STUDY OF OVIA SOUTH WEST LOCAL GOVERNMENT AREA OF EDO STATE, AGRICULTURAL EXTENSION PROJECT TOPICS AND MATERIALS
