Socio-Economic Structure and Income Distribution Dynamics in the Cocoa Beans Value Chain of Ogun State, Nigeria: Implications for Sustainable Agricultural Development

This study examined the socio-economic structure and income distribution dynamics among cocoa beans value chain actors in the Ijebu produce inspection areas of Ogun State and assessed their implications for sustainable agricultural development. Despite the economic importance of cocoa to Nigeria’s non-oil export sector and rural livelihoods, persistent disparities in value capture across actors continue to raise concerns about equity, efficiency, and long-term sustainability. Using a cross-sectional survey design, primary data were collected from 41 cocoa farmers, 47 local middlemen (Barakunas), 42 storekeepers, and 12 merchants operating within the grading zones of Ijebu Ode, Ogbere, and Ajebandele. Descriptive statistics and the Chi-square (χ²) test of independence were applied to analyze socio-demographic characteristics, income distribution, and enterprise structures across stakeholder categories. The results revealed statistically significant differences in socio-demographic profiles (χ² = 35.0, p < 0.001), income distribution (χ² = 25.98, p < 0.001), and enterprise characteristics (χ² = 48.01, p < 0.001) among value chain actors. Farmers were generally older and operated predominantly small-scale farms, with over half cultivating less than six hectares. Income distribution patterns showed notable disparities, with a large proportion of middlemen earning below ₦0.5 million annually, while merchants dominated higher income brackets and controlled larger storage capacities and seasonal tonnage volumes. Educational attainment and capital intensity increased progressively downstream along the value chain, indicating structural stratification and concentration of economic power among actors engaged in aggregation and trade. The study concluded that significant structural heterogeneity exists within the cocoa value chain, influencing value capture, market participation, and sustainability outcomes. These disparities have implications for generational renewal, investment capacity, and inclusive agricultural development. Strengthening farmer cooperatives, expanding access to finance, promoting youth participation, and improving farm-level post-harvest infrastructure were identified as critical policy priorities.