Evaluating the Economic Impact of Good Post-Harvest Practices on Cocoa Farming in Southwest Nigeria

Despite proven benefits in improving product quality and profitability, adoption rates for Good Post-Harvest Practices remain low. Therefore, understanding the factors influencing modern technologies’ adoption and the associated income disparities is crucial for promoting sustainable cocoa farming practices and addressing income inequalities among farmers. Thus, this study evaluates the economic impact of Good Post-Harvest Practices (GPHP) adoption among cocoa farmers in Southwest Nigeria. Using a well-designed questionnaire, primary data were collected from 200 cocoa farmers through a multistage sampling technique. The study employs descriptive statistics, budgetary technique and Endogenous Switching Regression Model (ESRM) to estimate the determinants and income effects of GPHP adoption. Results reveal significant demographic differences between adopters and non-adopters. Adopters, characterized by younger age, higher education levels, and greater access to extension services and modern technologies, achieved significantly higher incomes compared to non-adopters. The budgetary analysis shows that the Total Revenue (TR) of adopters (₦7.206.739.63) exceeded that of non-adopters (₦6.706.739.63), with a return on investment (ROI) of 9.15 for adopters and 7.98 for non-adopters. Key determinants influencing the adoption of GPHP include access to credit, market linkages, and membership in associations. Conversely, larger household sizes, limited market access, and lower social support networks hindered adoption. The Average Treatment Effect on the Treated (ATT) estimates indicate that GPHP adoption increased income by 12.77% (₦385.129.30). Therefore, it can be recommended that policies promoting access to credit, education, and market opportunities should be encouraged to bridge the income gap between adopters and non-adopters. This study contributes to the discourse on sustainable agriculture and equitable development in the cocoa value chain.