Competitiveness and effect of Government Policies on Sweet Orange Production In South western, Nigeria

Nigeria is one of the major producers of sweet orange in the world, yet her position in the commodity trade is far less impressive. Empirical analysis of the competitiveness and effect of policies on the commodity subsector is scanty. The study therefore examines competitiveness, comparative advantage and policies effects on sweet orange production in southern Nigeria in August, 2013. A random sampling technique was used to select ninety producers. Data were collected with the aid of well-structured questionnaire and analyzed using descriptive statistics and Policy Analysis Matrix (PAM). Secondary data on port charges, import/export tariffs and exchange rates were sourced from Nigeria Port Authority and trade statistics. PAM result showed that production of sweet orange had positive private profit of N706, 000/ha and positive social profit of N1, 646, 798/ha indicating that the production of the commodity is profitable to the actors and the southwestern economy. The domestic result cost ratio of 0.04 and the social cost benefit ratio 0.06 indicated. That the zone had comparative advantage in the production of the commodity. Nominal protection coefficient on output of 0.48. efficient protection coefficient (0.47), Profitability Coefficient (0.43) and Subsidy Ratio to the Producer (-0.53) and Producers subsidy estimate (-1.12) showed that the value added was lower at market price compared to the parity price. Sensitivity analysis result revealed that private and social profits and protection coefficients are sensitive to changes in yield; domestic price and border price of the commodity. The study recommends policies targeting marketing efficiency through value chain development.