Acessibilidade / Reportar erro

Dynamics of coffee output in Nigeria

Dinâmica da produção de café na Nigéria

Abstract:

Coffee is a strategic cash crop for poverty reduction and economic growth in Nigeria, and it is consumed worldwide, making it a significant source of income at both the micro and macro levels. This study analysed the trends in ' 'Nigeria's coffee output and the short and long-run determinants of coffee output in Nigeria. A period of 38 years was considered and the data were sourced from the Food and Agriculture Organization, the World Bank and the International Coffee Organization. The linear trend and the Autoregressive Distributed Lag Model were instrumental in the data analysis. The trend analysis reveals that coffee output is decreasing, necessitating immediate action. Fertiliser use and land availability for farmers require extra attention in the short run because they are significant and had a positive impact on coffee output. In the long-run climate change, producer price and fertiliser use negatively impact the coffee farmers' output. The need to make land easily accessible to coffee farmers by amending land use regulations to ensure the conservation and expansion of farmlands is one of the most notable recommendations of this study.

Keywords:
Coffee; Output; Dynamics; Price; Climate; Land

Resumo:

O café é uma cultura comercial estratégica para a redução da pobreza e o crescimento econômico na Nigéria, e é consumido em todo o mundo, tornando-se uma fonte significativa de renda nos níveis micro e macro. Este estudo analisou as tendências na produção de café da Nigéria e os determinantes de curto e longo prazo da produção de café na Nigéria. Foi considerado um período de 38 anos e os dados foram obtidos da Organização para a Alimentação e Agricultura, o Banco Mundial e a Organização Internacional do Café. A tendência linear e o Modelo Autorregressivo de Atraso Distribuído foram instrumentais na análise dos dados. A análise de tendências revela que a produção de café está diminuindo, exigindo ação imediata. O uso de fertilizantes e a disponibilidade de terras para os cafeicultores exigem atenção extra no curto prazo porque foram significativos e tiveram um impacto positivo na produção de café. No longo prazo, as mudanças climáticas, o preço ao produtor e o uso de fertilizantes têm um impacto negativo na produção dos cafeicultores. A necessidade de tornar a terra facilmente acessível aos cafeicultores por meio de emendas aos regulamentos de uso da terra para garantir a conservação e a expansão das terras agrícolas é uma das recomendações mais notáveis deste estudo.

Palavras-chave:
Café; Produção; Dinâmica; Preço; Clima; Terra

1 Introduction

Nigeria is the focus of this research. Nigeria is located in West Africa, between latitudes 4° and 14° north and longitudes 2°21 and 14°301 east. Nigeria has a land area of around 923,769 km2, although only about half of it is currently cultivated. In 2019, the land area utilised for coffee growing was expected to be 10 km2, whereas in 1981, the land area used for coffee farming was 60 km2. Agriculture in Nigeria is mainly influenced by the weather, with possible irrigation areas ranging from 1.5 to 3.2 million hectares.

Coffee (Coffee arabica and Robusta coffee) is a popular beverage and a significant source of income for actors along the coffee value chain in Nigeria, as well as a valuable cash crop for enhanced export earnings (Akinpelu et al., 2021Akinpelu, A. O., Oluyole, K. A., Ugwu, C. A., & Alli, M. A. (2021). Determinants of coffee marketing among smallholder coffee farmers in Kogi State, Nigeria. Asian Journal of Agricultural and Horticultural Research, 8(3), 13-18. http://dx.doi.org/10.9734/ajahr/2021/v8i330116.
http://dx.doi.org/10.9734/ajahr/2021/v8i...
; Alli et al., 2021Alli, M. A., Kehinde, A. A., Mutiat, O. A., Adejoke, A. A., Qudus, A. O., Chinweike, A. U., & Ayodele, O. A. (2021). Review on coffee research and production in Nigeria in the last one decade (2009- 2018). World Journal of Advanced Research and Reviews, 9(1), 31-36. http://dx.doi.org/10.30574/wjarr.2021.9.1.0501.
http://dx.doi.org/10.30574/wjarr.2021.9....
; Mohammed et al., 2013Mohammed, A. B., Ayanlere, A. F., & Ekenta, C. M. (2013). Profitability of coffee production in Kabba/Bunu local government area of Kogi State Nigeria. African Journal of Agricultural Research, 8(23), 2897-2902.; ICC, 2015International Coffee Council – ICC. (2015). Sustainability of the coffee sector in Africa: 114th Session 2-6 March 2015. London. Retrieved in 2022, June 5, from http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
http://www.ico.org/documents/cy2014-15/i...
; Krishnan, 2017Krishnan, S. (2017). Sustainable coffee production. In H. H. Shugart (Ed.), Oxford research encyclopedia of environmental science. Oxford: Oxford University Press. http://dx.doi.org/10.1093/acrefore/9780199389414.013.224.
http://dx.doi.org/10.1093/acrefore/97801...
). The coffee tree is a perennial woody tree crop. Coffee is a shade-loving tree that thrives in the shadow and is well-known for helping to preserve the ecology (Akinpelu et al., 2021Akinpelu, A. O., Oluyole, K. A., Ugwu, C. A., & Alli, M. A. (2021). Determinants of coffee marketing among smallholder coffee farmers in Kogi State, Nigeria. Asian Journal of Agricultural and Horticultural Research, 8(3), 13-18. http://dx.doi.org/10.9734/ajahr/2021/v8i330116.
http://dx.doi.org/10.9734/ajahr/2021/v8i...
). The coffee berry or cherries contain the seeds, often known as coffee beans. Processed coffee beans are raw materials for making coffee beverages (Singh & Verma, 2017Singh, V., & Verma, D. (2017). Processing technology and potential health benefits of coffee. In D. K. Verma & M. R. Goyal (Eds.),Engineering interventions in foods and plants (pp. 89-117). New York: Apple Academic Press. http://dx.doi.org/10.1201/9781315194677-4.
http://dx.doi.org/10.1201/9781315194677-...
; Esquivel & Jiménez, 2012Esquivel, V., & Jiménez, P. (2012). Functional properties of coffee and coffee by-products. Food Research International, 46(2), 488-495. http://dx.doi.org/10.1016/j.foodres.2011.05.028.
http://dx.doi.org/10.1016/j.foodres.2011...
). The coffee plant is indigenous to Africa, with its origins linked to Ethiopia, Central Africa, and West Africa (Ayoola et al., 2012Ayoola, J. B., Ayoola, G. B., & Ladele, A. A. (2012). An assessment of factors constraining coffee production and marketing in Nigeria. International Journal of Science and Nature, 3(3), 678-683.; ICC, 2015International Coffee Council – ICC. (2015). Sustainability of the coffee sector in Africa: 114th Session 2-6 March 2015. London. Retrieved in 2022, June 5, from http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
http://www.ico.org/documents/cy2014-15/i...
). Coffee grows between the latitudes of 25°N and 25°S, but commercial growing requires peculiar environmental conditions (Ogundeji et al., 2019Ogundeji, B. A., Olalekan-Adeniran, M. A., Orimogunje, O. A., Awoyemi, S. O., Yekini, B. A., Adewoye, G. A., & Bankole, I. A. (2019). Climate hazards and the changing world of coffee pests and diseases in Sub-Saharan Africa. Journal of Experimental Agriculture International, 41(6), 1-12. http://dx.doi.org/10.9734/jeai/2019/v41i630429.
http://dx.doi.org/10.9734/jeai/2019/v41i...
). Coffee is mainly produced by millions of small-scale farmers in the tropics; the coffee-producing states in Nigeria include Bauchi, Kwara, Plateau, Taraba, Cross River, and Osun; however, there are also temperate zones in Nigeria that can support coffee production. Coffee farming is a significant employer of labour; it is estimated that 9 million farmers are employed in the coffee value chain in Nigeria (ICC, 2015International Coffee Council – ICC. (2015). Sustainability of the coffee sector in Africa: 114th Session 2-6 March 2015. London. Retrieved in 2022, June 5, from http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
http://www.ico.org/documents/cy2014-15/i...
). Nigeria's low coffee output is due to a combination of factors, including poor farming practices, low mechanisation, limited access to funding and inputs, and the effects of the climate (PwC, 2017PricewaterhouseCoopers – PwC (2017). Transforming Nigeria’s agricultural value chain: a case study of the cocoa and dairy industries. London. Retrieved in 2022, June 5, from https://www.pwc.com/ng/en/assets/pdf/transforming-nigeria-s-agric-value-chain.pdf
https://www.pwc.com/ng/en/assets/pdf/tra...
; Mohammed et al., 2013Mohammed, A. B., Ayanlere, A. F., & Ekenta, C. M. (2013). Profitability of coffee production in Kabba/Bunu local government area of Kogi State Nigeria. African Journal of Agricultural Research, 8(23), 2897-2902.; Ayoola et al., 2012Ayoola, J. B., Ayoola, G. B., & Ladele, A. A. (2012). An assessment of factors constraining coffee production and marketing in Nigeria. International Journal of Science and Nature, 3(3), 678-683.). Every day, almost 500 billion cups of coffee are drunk globally (Czarniecka-Skubina et al., 2021Czarniecka-Skubina, E., Pielak, M., Sałek, P., Korzeniowska-Ginter, R., & Owczarek, T.. (2021). Consumer choices and habits related to coffee consumption by poles. International Journal of Environmental Research and Public Health, 18(8), 3948. http://dx.doi.org/10.3390/ijerph18083948. PMid:33918643.
http://dx.doi.org/10.3390/ijerph18083948...
). It is produced and eaten as a beverage by individuals of all ages, particularly the active population, due to its energising, anti-inflammatory, and antioxidant benefits (Ayoola et al., 2012Ayoola, J. B., Ayoola, G. B., & Ladele, A. A. (2012). An assessment of factors constraining coffee production and marketing in Nigeria. International Journal of Science and Nature, 3(3), 678-683.; Sousa et al., 2016Sousa, A. G., Machado, L. M., Silva, E. F., & Costa, T. H. (2016). Personal characteristics of coffee consumers and non-consumers, reasons and preferences for foods eaten with coffee among adults from the Federal District, Brazil. Food Science and Technology, 36(3), 432-438. http://dx.doi.org/10.1590/1678-457X.10015.
http://dx.doi.org/10.1590/1678-457X.1001...
; Rehm et al., 2020Rehm, C. D., Ratliff, J. C., Riedt, C. S., & Drewnowski, A. (2020). Coffee consumption among adults in the United States by demographic variables and purchase location: analyses of NHANES 2011-2016 data. Nutrients, 12(8), 2463. http://dx.doi.org/10.3390/nu12082463. PMid:32824298.
http://dx.doi.org/10.3390/nu12082463...
).

Temperature, rainfall, sunlight, wind, and soils are crucial in coffee production, but the needs vary depending on the cultivated varieties (Ayoola et al., 2012Ayoola, J. B., Ayoola, G. B., & Ladele, A. A. (2012). An assessment of factors constraining coffee production and marketing in Nigeria. International Journal of Science and Nature, 3(3), 678-683.). The changing climate in the tropics, particularly in terms of altered rainfall patterns and extended dry spells in most parts of Nigeria, has led to soil water balance changes, flooding, drying up of water bodies, and desert encroachment. Due to delayed rainfall in some of the producing regions, coffee production in Nigeria is expected to decline in the 2020/21 farming season (Bjornlund et al., 2020Bjornlund, V., Bjornlund, H., & van Rooyen, A. (2020). Why agricultural production in sub-Saharan Africa remains low compared to the rest of the world: a historical perspective. International Journal of Water Resources Development, 36(Suppl. 1), S20-S53. http://dx.doi.org/10.1080/07900627.2020.1739512.
http://dx.doi.org/10.1080/07900627.2020....
; Malhi et al., 2021Malhi, G. S., Kaur, M., & Kaushik, P. (2021). Impact of climate change on agriculture and its mitigation strategies: a review. Sustainability, 13(3), 1318. http://dx.doi.org/10.3390/su13031318.
http://dx.doi.org/10.3390/su13031318...
). In addition, the increase in the incidence of pests and diseases that harm the coffee tree, such as parasitic nematode, coffee berry borer, leaf rust, coffee berry disease, brown eyespot, and coffee wilt disease, is linked to climate variations (Gizaw et al., 2021Gizaw, W., Mengesha, M., & Nigatu, L. (2021). Analysis of rainfall and temperature variability impacts on coffee (Coffea arabica L.) productivity in Habro District, West Harerghe Zone. Eastern Ethiopia. Journal of Climatology and Weather Forecast, 283(9), 1-7.; Ogundeji et al., 2019Ogundeji, B. A., Olalekan-Adeniran, M. A., Orimogunje, O. A., Awoyemi, S. O., Yekini, B. A., Adewoye, G. A., & Bankole, I. A. (2019). Climate hazards and the changing world of coffee pests and diseases in Sub-Saharan Africa. Journal of Experimental Agriculture International, 41(6), 1-12. http://dx.doi.org/10.9734/jeai/2019/v41i630429.
http://dx.doi.org/10.9734/jeai/2019/v41i...
). These conditions impact the productivity of most small-scale coffee farmers, lowering their income.

Coffee output in Nigeria has declined due to population growth, which has caused producers to convert their farms to residential areas, resulting in a shortage of suitable land (ICC, 2009International Coffee Council – ICC. (2009). Climate change and coffee103rd session. London.; Ogundeji et al., 2019Ogundeji, B. A., Olalekan-Adeniran, M. A., Orimogunje, O. A., Awoyemi, S. O., Yekini, B. A., Adewoye, G. A., & Bankole, I. A. (2019). Climate hazards and the changing world of coffee pests and diseases in Sub-Saharan Africa. Journal of Experimental Agriculture International, 41(6), 1-12. http://dx.doi.org/10.9734/jeai/2019/v41i630429.
http://dx.doi.org/10.9734/jeai/2019/v41i...
). The majority of small-scale coffee producers are abandoning their farms due to climate change and production issues outside the farmers' control. Most coffee farms are old and unprofitable, and the farmers have abandoned traditional farming practices (Aderolu et al., 2014Aderolu, I. A., Babalola, F. D., Ugioro, O., Anagbogu, C. F., Ndagi, I., Mokwunye, F. C., & Mokwunye, I. U. (2014). Production and marketing of Coffee (Coffea robusta) in Kogi State, Nigeria: challenges and recommendation for intervention. Journal of Social Science Research, 3(2), 207-215. http://dx.doi.org/10.24297/jssr.v3i2.3559.
http://dx.doi.org/10.24297/jssr.v3i2.355...
). Longer drought spells and interrupted flowering cycles are two examples of climate change impacts on coffee, resulting in decreased quantity and quality of coffee harvested (Gizaw et al., 2021Gizaw, W., Mengesha, M., & Nigatu, L. (2021). Analysis of rainfall and temperature variability impacts on coffee (Coffea arabica L.) productivity in Habro District, West Harerghe Zone. Eastern Ethiopia. Journal of Climatology and Weather Forecast, 283(9), 1-7.; Ogundeji et al., 2019Ogundeji, B. A., Olalekan-Adeniran, M. A., Orimogunje, O. A., Awoyemi, S. O., Yekini, B. A., Adewoye, G. A., & Bankole, I. A. (2019). Climate hazards and the changing world of coffee pests and diseases in Sub-Saharan Africa. Journal of Experimental Agriculture International, 41(6), 1-12. http://dx.doi.org/10.9734/jeai/2019/v41i630429.
http://dx.doi.org/10.9734/jeai/2019/v41i...
). Coffee will go extinct unless suitable climate change mitigation and adaptation methods are implemented, which include conservation, monitoring, and seed preservation (Ogundeji et al., 2019Ogundeji, B. A., Olalekan-Adeniran, M. A., Orimogunje, O. A., Awoyemi, S. O., Yekini, B. A., Adewoye, G. A., & Bankole, I. A. (2019). Climate hazards and the changing world of coffee pests and diseases in Sub-Saharan Africa. Journal of Experimental Agriculture International, 41(6), 1-12. http://dx.doi.org/10.9734/jeai/2019/v41i630429.
http://dx.doi.org/10.9734/jeai/2019/v41i...
; Duke & Cornell, 2019Duke, E. S., & Cornell, M. H. (2019, February). How climate change is killing coffee. Pennsylvania: Knowledge at Wharton. Austin. Retrieved in 2022, June 5, from http://www.coffeeresearch.org/agriculture/coffeeplant.htm
http://www.coffeeresearch.org/agricultur...
). According to Kollipara (2014)Kollipara, P. (2014). Climate change could slash coffee production. American Association for the Advancement of Science. Retrieved in 2022, June 5, from https://www.sciencemag.org/news/2014/12/climate-change-could-slash-coffee-production
https://www.sciencemag.org/news/2014/12/...
, the issue of global warming and other climate change effects must be treated as an emergency, or the land area suitable for coffee farming will decline by 50%, affecting global coffee output. In addition, coffee farmers suffer low output quality, low harvest pricing, insufficient processing and storage facilities, and unreliable marketing channels. Given the importance of coffee worldwide, output in Nigeria has been declining in past decades. Low prices on the international market, limited access to production factors, and the effects of climate change posed the most significant challenge. For example, in 1966, Nigeria produced 4000 tonnes of coffee, but in 1967, it only produced 1712 tonnes due to political unrest that hindered access to production assets. In 1969, Nigeria produced 4776 tonnes of coffee, whereas, in 1979, Nigeria produced 3200 tonnes. Recently in 2019, the output of coffee was 1117, which declined from 2400 tonnes recorded in 2010 (FAO, 2021Food and Agriculture Organization of the United Nations – FAO. (2021). FAOSTAT: food balances (2010-). Retrieved in 2022, June 3, from http://www.fao.org/faostat/en/#data/FBS[REMOVED IF= FIELD]
http://www.fao.org/faostat/en/#data/FBS...
).

Land, capital, output and input prices, and climatic factors are all important factors influencing the short run and long run coffee production (Nchare, 2007Nchare, A. (2007). Analysis of factors affecting the technical efficiency of arabica coffee producers in Cameroon. Nairobi: African Economic Research Consortium.). These factors make small-scale coffee farmers more vulnerable to postharvest losses of more than 50% (Kasso & Bekele, 2018Kasso, M., & Bekele, A. (2018). Postharvest loss and quality deterioration of horticultural crops in Dire Dawa Region, Ethiopia. Journal of the Saudi Society of Agricultural Sciences, 17(1), 88-96. http://dx.doi.org/10.1016/j.jssas.2016.01.005.
http://dx.doi.org/10.1016/j.jssas.2016.0...
; Baca et al., 2014Baca, M., Läderach, P., Haggar, J., Schroth, G., & Ovalle, O. (2014). An integrated framework for assessing vulnerability to climate change and developing adaptation strategies for coffee growing families in Mesoamerica. PLoS One, 9(2), e88463. http://dx.doi.org/10.1371/journal.pone.0088463. PMid:24586328.
http://dx.doi.org/10.1371/journal.pone.0...
). Because there are few locations where coffee production can thrive sustainably, the choice of location for coffee production has further limited access to land (Tosh, 1980Tosh, J. (1980). The cash-crop revolution in tropical Africa: an agricultural reappraisal. African Affairs, 79(314), 79-94. http://dx.doi.org/10.1093/oxfordjournals.afraf.a097201.
http://dx.doi.org/10.1093/oxfordjournals...
). The development of the coffee value chain has been hampered by low levels of technological adoption and the labour-intensive nature of the coffee processing. As a result, low-quality coffee beans are produced, which do not command the same competitive price as coffee beans from other countries (Idrisu et al., 2012Idrisu, M., Babalola, F. D., Mokwunye, I. U., Anagbogu, C. F., Aderolu, I. A., Ugioro, O., Asogwa, E. U., Ndagi, I., & Mokwunye, F. C. (2012). Adaptive measures for the factors affecting marketing of coffee (Coffea robusta Rio Nunes) in Kogi State, Nigeria. Agrosearch, 12(1), 37-49. http://dx.doi.org/10.4314/agrosh.v12i1.4.
http://dx.doi.org/10.4314/agrosh.v12i1.4...
). The use of standard cultural practices and other standardisation practices will allow coffee farmers to produce efficiently and meet the demands of the international coffee market (Tollens, 2002Tollens, E. (2002). Market information systems in liberalized african export commodity markets: the case of cocoa and coffee in Cote D'Ivoire, Nigeria and Cameroon (No. 1067-2016-86810). Leuven: Katholieke Universiteit Leuven.). This persistent fluctuation in the output of an important cash crop such as coffee is problematic. Therefore, there is a need to seek empirical evidence of the short-run and long-run dynamics of coffee output in Nigeria.

The broad objective of this study is to analyse the dynamics of coffee output in Nigeria. The specific objectives are to analyse the linear trend of coffee output in Nigeria and the short-run and long-run determinants of coffee output in Nigeria. Coffee production shows the influence of production factors and macroeconomic variables in determining the rate of acceleration and deceleration, stability and stagnation of coffee production during the time frame under consideration (Onwumere et al., 2021Onwumere, J. C., Ubokudom, I. A., Eneh, H. C., Okeke, R. C., & Nwachukwu, D. C. (2021). Trend analysis of cocoa industry productivity to selected macroeconomic variables in Nigeria. Journal of Community & Communication Research, 6(2), 130-139.; Ikeno, 2007Ikeno, J. (2007). The declining coffee economy and low population growth in Mwanga District, Tanzania. African Study Monographs. Supplementary Issue, 35, 3-39.; Ababu & Getahun, 2021Ababu, D. G., & Getahun, A. M. (2021). Time series analysis of price of coffee in case of Mettu Town, Ilu Ababor Zone, Oromia Regional State, Ethiopia. Asian Journal of Dairy and Food Research, 40(3), 279-284. http://dx.doi.org/10.18805/ajdfr.DR-204.
http://dx.doi.org/10.18805/ajdfr.DR-204...
). Some authors have argued that the interplay of economic variables when determining the short- and long-term performance of a product cannot be overlooked because of the influence of time (Davis et al., 2012Davis, A. P., Gole, T. W., Baena, S., & Moat, J. (2012). The impact of climate change on indigenous arabica coffee (Coffea arabica): predicting future trends and identifying priorities. PLoS One, 7(11), e47981. http://dx.doi.org/10.1371/journal.pone.0047981. PMid:23144840.
http://dx.doi.org/10.1371/journal.pone.0...
; Robinson et al., 2020Robinson, J. L., Hunter, J. M., Reyes-Izquierdo, T., Argumedo, R., Brizuela-Bastien, J., Keller, R., & Pietrzkowski, Z. J. (2020). Cognitive short-and long-term effects of coffee cherry extract in older adults with mild cognitive decline. Neuropsychology, Development, and Cognition. Section B, Aging, Neuropsychology and Cognition, 27(6), 918-934. http://dx.doi.org/10.1080/13825585.2019.1702622. PMid:31829793.
http://dx.doi.org/10.1080/13825585.2019....
; Gizaw, 2021Gizaw, W. (2021). Spatio-temporal variation in area of production, number of holders and productivity of coffee (Coffea arabica L.) and Khat (Khat edulis L.) in West and East Hararghe Zone, Eastern Ethiopia. Journal of Climatology & Weather Forecasting, 9, 285.; Wasihun, 2019Wasihun, G. F. (2019). Trend analysis of coffee (Coffea arabica L.) productivity, area of production and numbers of holders in Ethiopia. Journal of Natural Sciences Research, 9(15), 1-6.; Ayele et al., 2021Ayele, A., Worku, M., & Bekele, Y. (2021). Trend, instability and decomposition analysis of coffee production in Ethiopia (1993-2019). Heliyon, 7(9), e08022. http://dx.doi.org/10.1016/j.heliyon.2021.e08022. PMid:34589632.
http://dx.doi.org/10.1016/j.heliyon.2021...
). This is because the way economic variables interact with one another is affected by the passage of time. Short and long-term fluctuations in coffee's short and long-term trends may be influenced by significant production and climate factors in economies with relatively simple and small economies (Cervantes-Godoy et al., 2014Cervantes-Godoy, D., Dewbre, J., Amegnaglo, C. J., Soglo, Y. Y., Akpa, A. F., Bickel, M., & Swanson, B. E. (2014). The future of food and agriculture: trends and challenges (Tech. Rep.). Rome: FAO.; Ahmed et al., 2021Ahmed, S., Brinkley, S., Smith, E., Sela, A., Theisen, M., Thibodeau, C., Warne, T., Anderson, E., Van Dusen, N., Giuliano, P., Ionescu, K. E., & Cash, S. B. (2021). Climate change and coffee quality: systematic review on the effects of environmental and management variation on secondary metabolites and sensory attributes of Coffea arabica and Coffea canephora. Frontiers in Plant Science, 12, 708013. http://dx.doi.org/10.3389/fpls.2021.708013. PMid:34691093.
http://dx.doi.org/10.3389/fpls.2021.7080...
; Gizaw et al., 2021Gizaw, W., Mengesha, M., & Nigatu, L. (2021). Analysis of rainfall and temperature variability impacts on coffee (Coffea arabica L.) productivity in Habro District, West Harerghe Zone. Eastern Ethiopia. Journal of Climatology and Weather Forecast, 283(9), 1-7.). An evaluation of the next decade's trend in coffee production must take into account production variables and climate and extraneous influences (Ahmed et al., 2021Ahmed, S., Brinkley, S., Smith, E., Sela, A., Theisen, M., Thibodeau, C., Warne, T., Anderson, E., Van Dusen, N., Giuliano, P., Ionescu, K. E., & Cash, S. B. (2021). Climate change and coffee quality: systematic review on the effects of environmental and management variation on secondary metabolites and sensory attributes of Coffea arabica and Coffea canephora. Frontiers in Plant Science, 12, 708013. http://dx.doi.org/10.3389/fpls.2021.708013. PMid:34691093.
http://dx.doi.org/10.3389/fpls.2021.7080...
; Ogundeji et al., 2019Ogundeji, B. A., Olalekan-Adeniran, M. A., Orimogunje, O. A., Awoyemi, S. O., Yekini, B. A., Adewoye, G. A., & Bankole, I. A. (2019). Climate hazards and the changing world of coffee pests and diseases in Sub-Saharan Africa. Journal of Experimental Agriculture International, 41(6), 1-12. http://dx.doi.org/10.9734/jeai/2019/v41i630429.
http://dx.doi.org/10.9734/jeai/2019/v41i...
; Oko-Isu et al., 2019Oko-Isu, A., Chukwu, A. U., Ofoegbu, G. N., Igberi, C. O., Ololo, K. O., Agbanike, T. F., Anochiwa, L., Uwajumogu, N., Enyoghasim, M. O., Okoro, U. N., & Iyaniwura, A. A. (2019). Coffee output reaction to climate change and commodity price volatility: the Nigeria experience. Sustainability, 11(13), 3503. http://dx.doi.org/10.3390/su11133503.
http://dx.doi.org/10.3390/su11133503...
).

2 Literature review

Ethiopians are the first to drink coffee, a tradition that dates back to the country's colonial history (Orlowska, 2013Orlowska, I. (2013). Forging a nation: the Ethiopian millennium celebration and the multiethnic state. Nations and Nationalism, 19(2), 296-316. http://dx.doi.org/10.1111/nana.12021.
http://dx.doi.org/10.1111/nana.12021...
). There are two African varieties of coffee: Arabica and Robusta. In contrast to Robusta coffee, Arabica coffee is grown at higher altitudes, often on volcanic soils. Compared to Robusta, Arabica is more difficult and expensive to grow. Building nurseries, planting, maintaining, and harvesting mature beans are all part of the first phase in the coffee value chain (primary phase in the value chain) (van Asten et al., 2011van Asten, P. J., Wairegi, L. W. I., Mukasa, D., & Uringi, N. O. (2011). Agronomic and economic benefits of coffee-banana intercropping in Uganda’s small-holder farming systems. Agricultural Systems, 104(4), 326-334. http://dx.doi.org/10.1016/j.agsy.2010.12.004.
http://dx.doi.org/10.1016/j.agsy.2010.12...
). Phase two involves the postharvest processing of fully mature beans. Wet or dry processing can significantly impact a product's value. Marketing and packaging are part of phase three. Roasting and distribution are included in the fourth section. Only a few exporting countries, and even fewer in Africa, reach this value chain stage (ICC, 2015International Coffee Council – ICC. (2015). Sustainability of the coffee sector in Africa: 114th Session 2-6 March 2015. London. Retrieved in 2022, June 5, from http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
http://www.ico.org/documents/cy2014-15/i...
). Small-holders dominate coffee farming in almost all African countries, ranging from half a hectare to ten hectares. Large plantations of coffee estates are rare in Nigeria (Karanja, 2002Karanja, A. M. (2002). Liberalisation and small-holder agricultural development: a case study of coffee farms in Central Kenya. Wageningen: Wageningen University and Research.). Except in Malawi and Zambia, estates dominate coffee farming. Estate farms produce 40% of Kenya's total output. The number of active coffee farmers in Africa is estimated to be between 10 and 12 million (Moyo, 2016Moyo, S. (2016). Family farming in sub-Saharan Africa: its contribution to agriculture, food security and rural development (Working Paper, No. 150). Rome: FAO.; Dinham& Hines, 1984Dinham, B., & Hines, C. (1984). Agribusiness in Africa. Trenton: Africa World Press.). The total number of coffee-growing households is estimated at seven million, with an average household size of two adults (ICC, 2015International Coffee Council – ICC. (2015). Sustainability of the coffee sector in Africa: 114th Session 2-6 March 2015. London. Retrieved in 2022, June 5, from http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
http://www.ico.org/documents/cy2014-15/i...
).

There is a dearth of literature on coffee production in Nigeria. Akinpelu et al. (2021)Akinpelu, A. O., Oluyole, K. A., Ugwu, C. A., & Alli, M. A. (2021). Determinants of coffee marketing among smallholder coffee farmers in Kogi State, Nigeria. Asian Journal of Agricultural and Horticultural Research, 8(3), 13-18. http://dx.doi.org/10.9734/ajahr/2021/v8i330116.
http://dx.doi.org/10.9734/ajahr/2021/v8i...
investigated the factors that influence coffee marketing by small-scale producers in Nigeria. The authors used the double log regression model to analyse the data. Education of the producers, farm size, coffee variety, and experience were all critical factors. While conducting a similar study to Akinpelu et al. (2021)Akinpelu, A. O., Oluyole, K. A., Ugwu, C. A., & Alli, M. A. (2021). Determinants of coffee marketing among smallholder coffee farmers in Kogi State, Nigeria. Asian Journal of Agricultural and Horticultural Research, 8(3), 13-18. http://dx.doi.org/10.9734/ajahr/2021/v8i330116.
http://dx.doi.org/10.9734/ajahr/2021/v8i...
, Idrisu et al. (2012)Idrisu, M., Babalola, F. D., Mokwunye, I. U., Anagbogu, C. F., Aderolu, I. A., Ugioro, O., Asogwa, E. U., Ndagi, I., & Mokwunye, F. C. (2012). Adaptive measures for the factors affecting marketing of coffee (Coffea robusta Rio Nunes) in Kogi State, Nigeria. Agrosearch, 12(1), 37-49. http://dx.doi.org/10.4314/agrosh.v12i1.4.
http://dx.doi.org/10.4314/agrosh.v12i1.4...
reported that coffee is grown by 25 to 30 million small-holder producers in the tropics. The authors used a qualitative approach to discuss the unique challenges to coffee production in Nigeria, such as the abolition of the marketing board, a lack of an appropriate quality control system, adulterated coffee beans, a poor information system for the dissemination of coffee technology, a lack of incentives, and a lack of farm inputs. Ayoola et al. (2012)Ayoola, J. B., Ayoola, G. B., & Ladele, A. A. (2012). An assessment of factors constraining coffee production and marketing in Nigeria. International Journal of Science and Nature, 3(3), 678-683. investigated the factors that limit coffee production and sales. Diseases, pests, land, capital, labor, poor technology, and global prices are constraints.

Nchare (2007)Nchare, A. (2007). Analysis of factors affecting the technical efficiency of arabica coffee producers in Cameroon. Nairobi: African Economic Research Consortium. identified land inputs, coffee tree age, experience, and capital as factors influencing the technical efficiency of Cameroonian Arabic coffee producers. Boansi & Crentsil (2013)Boansi, D., & Crentsil, C. (2013). Competitiveness and determinants of coffee exports, producer price and production for Ethiopia (MPRA Paper, No. 48869). Munich: Munich Personal RePEc Archive. Retrieved in 2022, June 5, from https://mpra.ub.uni-muenchen.de/48869/
https://mpra.ub.uni-muenchen.de/48869/...
used the unit root test and OLS regression. The authors looked at coffee yield, producer price, world price, nominal rate, competitiveness, and labour as factors influencing coffee production.

Machuka (2016)Machuka, S. M. (2016). Determinants of productivity of small-scale holdings of arabica coffee and its supply response in Kenya: a case study of Kiambu County (Doctoral thesis). University of Tanzania, Tanzania. investigated the determinants of coffee farm productivity in Kenya, focusing on coffee farm size, fertilisers, chemicals, prices, and costs. The Cobb-Douglas approach was used to analyse the data, and a sample of 125 farmers was studied. Jaramillo et al. (2013)Jaramillo, J., Setamou, M., Muchugu, E., Chabi-Olaye, A., Jaramillo, A., Mukabana, J., Maina, J., Gathara, S., & Borgemeister, C. (2013). Climate change or urbanisation? Impacts on a traditional coffee production system in East Africa over the last 80 years. PLoS One, 8(1), e51815. http://dx.doi.org/10.1371/journal.pone.0051815. PMid:23341884.
http://dx.doi.org/10.1371/journal.pone.0...
investigated the impact of Global Environmental Change (GEC) on coffee production in East Africa, including climate change and variability and urbanisation. The study used spatial and demographic data over 80 years. Verter et al. (2015)Verter, N., Bamwesigye, D., & Darkwah, S. A. (2015). Analysis of coffee production and exports in Uganda. In International Conference on Applied Business Research (Vol. 1, pp. 1083-1090). found that price is a significant determinant of coffee production using multiple regression analysis on a 17-year data set when analysing the production and export of coffee in Uganda. Harris et al. (2012)Harris, E., Abdul-Aziz, A. R., & Avuglah, R. K. (2012). Modeling annual Coffee production in Ghana using ARIMA time series Model. International Journal of Business and Social Research, 2(7), 175-186. used the Autoregressive Integrated Moving Average (ARIMA) time series model on a 20-year data set to study coffee production in Ghana. According to the findings, coffee production in Ghana has been steadily increasing. Okoisu et al. (2019) used the Fully Modified OLS model to estimate the impact of climate change, price, and other factors on coffee production in Nigeria, emphasising the importance of price as a production determinant. Hordofa (2021)Hordofa, D. (2021). Does Ethiopian competitive in export of coffee so far and what determines it? Evidence from revealed comparative advantage and autoregressive distributed lag model. Preprints, 2021, 2021040053. used the Autoregressive distributed Lag Model to analyse the determinants of Ethiopian coffee exports and found that the quantity of coffee produced is critical for export performance. It is essential to justify the choice of variables that are included in the ARDL model. The first is temperature as a determinant of coffee output in Nigeria. Climate constraints in Nigeria are dominated by high temperatures (Haider, 2019Haider, H. (2019). Climate change in Nigeria: impacts and responses. London: K4D.). Due to climate change and the expansion of coffee cultivation to marginal lands, such as in Nigeria's north, these constraints are expected to grow in importance in several coffee-growing regions (Grüter et al., 2022Grüter, R., Trachsel, T., Laube, P., & Jaisli, I. (2022). Expected global suitability of coffee, cashew and avocado due to climate change. PLoS One, 17(1), e0261976. http://dx.doi.org/10.1371/journal.pone.0261976. PMid:35081123.
http://dx.doi.org/10.1371/journal.pone.0...
; Pereira, 2017Pereira, L. (2017). Climate change impacts on agriculture across Africa. In H. H. Shugart (Ed.), Oxford research encyclopedia of environmental science. Oxford: Oxford University Press.). Poor weather and a lack of water are limiting coffee production. Restrictions on physiology and thus yields of Coffee arabica and Coffee canephora, which account for nearly all of the world's coffee bean production, have been found by DaMatta & Ramalho (2006)DaMatta, F. M., & Ramalho, J. D. C. (2006). Impacts of drought and temperature stress on coffee physiology and production: a review. Brazilian Journal of Plant Physiology, 18(1), 55-81. http://dx.doi.org/10.1590/S1677-04202006000100006.
http://dx.doi.org/10.1590/S1677-04202006...
. Kath et al (2021)Kath, J., Byrareddy, V. M., Mushtaq, S., Craparo, A., & Porcel, M. (2021). Temperature and rainfall impacts on robusta coffee bean characteristics. Climate Risk Management, 32, 100281. http://dx.doi.org/10.1016/j.crm.2021.100281.
http://dx.doi.org/10.1016/j.crm.2021.100...
and Legesse (2019)Legesse, A. (2019). Climate change effect on coffee yield and quality: a review. International Journal of Horticulture, 5, 1-9. reported that increased temperature above 22 °C increases the risk of poor coffee yield.

The second determinant of coffee output in Nigeria is the price of coffee. The price of coffee is not immune to inflationary pressures, especially with the collapse of the International Coffee Agreement (ICA) and the liberalisation of markets which made the forces of demand and supply determine price (Mkandya et al., 2010Mkandya, E., Kilima, F. T. M., Lazaro, E. A., & Makindara, J. R. (2010). The impact of market reform programmes on coffee prices in Tanzania. Tanzania Journal of Agricultural Sciences, 10(1), 38-45.). The price of coffee is correlated to inflationary pressures, the higher the level of inflation the price of coffee goes higher and vice versa (Paul, 1994Paul, M. B. (1994). The impact of coffee prices on inflation and the national debt in Uganda. Dakar: United Nations, Economic Commission for Africa, African Institute for Economic Development and Planning. Retrieved in 2022, June 5, from https://hdl.handle.net/10855/42547
https://hdl.handle.net/10855/42547...
), and Coffee market prices have fluctuated over time. Coffee is distinguished by a combination of short periods of high and volatile prices and long periods of low and stable prices. Coffee passes through many hands from whole green bean to coffee cup, and different price levels emerge along the value chain. Producer price increases were primarily caused by agricultural, climatic, and environmental risks. Weather has played a significant role in explaining price volatility (Li, 2016Li, X. (2016). Price analysis under production differentiation in green coffee markets (No. 44) (Doctoral thesis). University of Kentucky, Kentucky. Retrieved in 2022, June 5, from https://uknowledge.uky.edu/agecon_etds/44
https://uknowledge.uky.edu/agecon_etds/4...
; Ssenkaaba, 2019Ssenkaaba, J. (2019). Price determination in coffee market: the impact of supply and demand shifts (Master's thesis). School of Business and Economics, The Artic University of Norway, Norway. Retrieved in 2022, June 5, from https://munin.uit.no/bitstream/handle/10037/17572/thesis.pdf?sequence=2&isAllowed=y
https://munin.uit.no/bitstream/handle/10...
). The impact of positive and negative shocks on coffee price return volatility has long-lasting and asymmetrical, affecting coffee markets (Swaray, 2007Swaray, R. (2007). How did the demise of international commodity agreements affect volatility of primary commodity prices? Applied Economics, 39(17), 2253-2260. http://dx.doi.org/10.1080/00036840600707043.
http://dx.doi.org/10.1080/00036840600707...
). Coffee export earnings are increasing dramatically as coffee prices rise on the global market, and export earnings could be increased further by increasing produced quantities and improving coffee quality to meet the requirements of international markets (Talbot, 1997Talbot, J. M. (1997). Where does your coffee dollar go?: the division of income and surplus along the coffee commodity chain. Studies in Comparative International Development, 32(1), 56-91. http://dx.doi.org/10.1007/BF02696306.
http://dx.doi.org/10.1007/BF02696306...
; Al-Abdulkader et al., 2018Al-Abdulkader, A. M., Al-Namazi, A. A., AlTurki, T. A., Al-Khuraish, M. M., & Al-Dakhil, A. I. (2018). Optimising coffee cultivation and its impact on economic growth and export earnings of the producing countries: the case of Saudi Arabia. Saudi Journal of Biological Sciences, 25(4), 776-782. http://dx.doi.org/10.1016/j.sjbs.2017.08.016. PMid:29740243.
http://dx.doi.org/10.1016/j.sjbs.2017.08...
). Local markets pay higher prices for coffee than export markets, averaging $7.45 thousand per ton versus $1.98 thousand (Al-Abdulkader et al., 2018Al-Abdulkader, A. M., Al-Namazi, A. A., AlTurki, T. A., Al-Khuraish, M. M., & Al-Dakhil, A. I. (2018). Optimising coffee cultivation and its impact on economic growth and export earnings of the producing countries: the case of Saudi Arabia. Saudi Journal of Biological Sciences, 25(4), 776-782. http://dx.doi.org/10.1016/j.sjbs.2017.08.016. PMid:29740243.
http://dx.doi.org/10.1016/j.sjbs.2017.08...
). Coffee prices are volatile due to seasonality, inelastic demand, production uncertainty, and coffee export prices are determined on international markets (Lewin et al., 2004Lewin, B., Giovannucci, D., & Varangis, P. (2004). Coffee markets new paradigms in global supply and demand. Washington: The International Bank for Reconstruction and Development Agriculture and Rural Development Department. http://dx.doi.org/10.2139/ssrn.996111.
http://dx.doi.org/10.2139/ssrn.996111...
). Coffee Price fluctuations represent a significant price risk, and they are closely related to inflation. In the absence of a hedging mechanism, increased volatility in coffee prices increases uncertainty about future prices (Yovo, 2021Yovo, K. (2021). The response of coffee and cocoa supply to the price volatility: the case of Togo. American Journal of Economics, 11(2), 49-56.).

Based on some literature, the availability of suitable land for coffee production is a determinant of coffee output. Cleland (2010)Cleland, D. (2010). The impacts of coffee production on local producers (Senior project). California Polytechnic State University, San Luis Obispo. reported that after 15 years' time, most small scale coffee farmers convert their land to staple crop and livestock farms thereby depleting the quantity of land available for coffee production. Sachs et al. (2019)Sachs, J. D., Cordes, K. Y., Rising, J., Toledano, P., & Maennling, N. (2019). Ensuring economic viability and sustainability of coffee production. New York: Columbia Center on Sustainable Investment. estimate that by 2050, 75 percent of suitable land for coffee production will have been lost. There have been rapid and significant biophysical changes on coffee farmland in the last two decades due to low coffee prices, changing climate, severe plant pathogen outbreaks, and other factors (Harvey et al., 2021Harvey, C. A., Pritts, A. A., Zwetsloot, M. J., Jansen, K., Pulleman, M. M., Armbrecht, I., Avelino, J., Barrera, J. F., Bunn, C., García, J. H., Isaza, C., Munoz-Ucros, J., Pérez-Alemán, C. J., Rahn, E., Robiglio, V., Somarriba, E., & Valencia, V. (2021). Transformation of coffee-growing landscapes across Latin America: a review. Agronomy for Sustainable Development, 41(5), 62. http://dx.doi.org/10.1007/s13593-021-00712-0. PMid:34484434.
http://dx.doi.org/10.1007/s13593-021-007...
). The access to capital by the coffee farmers in Nigeria is a determinant of output. Minh et al. (2016)Minh, H. T., Trang, D. T. N., & Chen, J. (2016). Input factors to sustainable development of coffee production in the Dak Lak province. Open Access Library Journal, 3(12), 1-10. http://dx.doi.org/10.4236/oalib.1103187.
http://dx.doi.org/10.4236/oalib.1103187...
reported that capital is a significant factor affecting the productivity of coffee farmers and Bukuru & Tabitha (2021)Bukuru, E., & Tabitha, N. (2021). Financial factors affecting production efficiency of small scale coffee farms in Burundi. International Journal of Finance and Accounting, 6(2), 57-70. http://dx.doi.org/10.47604/ijfa.1424.
http://dx.doi.org/10.47604/ijfa.1424...
also noted that capital has a positive correlation coefficient with the production of coffee farmers in Burundi. Providing a long-term source of financing for coffee value chains has been a challenge because of poor contractual and product quality issues (Fitter & Kaplinksy, 2001Fitter, R., & Kaplinksy, R. (2001). Who gains from product rents as the coffee market becomes more differentiated? A value‐chain analysis. IDS Bulletin, 32(3), 69-82. http://dx.doi.org/10.1111/j.1759-5436.2001.mp32003008.x.
http://dx.doi.org/10.1111/j.1759-5436.20...
). There are still several small-holder coffee farmers who lack resources and capital. Through low-cost credit, new processing technologies can only be made available to farmers outside of the project and to other regions (Markelova et al., 2009Markelova, H., Meinzen-Dick, R., Hellin, J., & Dohrn, S. (2009). Collective action for small-holder market access. Food Policy, 34(1), 1-7. http://dx.doi.org/10.1016/j.foodpol.2008.10.001.
http://dx.doi.org/10.1016/j.foodpol.2008...
). Farmers require a large amount of capital to maximise the use of coffee production technology.

The availability of capital is expected to boost coffee production and productivity, thereby improving farmers' well-being (Valkila, 2009Valkila, J. (2009). Fair Trade organic coffee production in Nicaragua: sustainable development or a poverty trap? Ecological Economics, 68(12), 3018-3025. http://dx.doi.org/10.1016/j.ecolecon.2009.07.002.
http://dx.doi.org/10.1016/j.ecolecon.200...
). Access refers to a coffee farmer's ability to obtain capital and finance services from a bank or financial institution, either individually or in groups (Milder, 2008Milder, B. (2008). Closing the gap: reaching the missing middle and rural poor through value chain finance. Enterprise Development & Microfinance, 19(4), 301-316. http://dx.doi.org/10.3362/1755-1986.2008.027.
http://dx.doi.org/10.3362/1755-1986.2008...
). A farmer has access to a specific credit source as long as they can get loans from that credit source, though they may choose not to ask for a loan for various reasons.

The neoclassical theory requires three factors for production to increase, and labor, capital, and technological innovation drive production. According to neoclassical growth theory, these three factors are not critical to achieving long-term equilibrium, all things being equal (Knight et al., 1993Knight, M., Loayza, N., & Villanueva, D. (1993). Testing the neoclassical theory of economic growth: a panel data approach. Staff Papers, 40(3), 512-541. http://dx.doi.org/10.2307/3867446.
http://dx.doi.org/10.2307/3867446...
). The total output is determined by coffee producers' capital and labour (Volsi et al., 2019Volsi, B., Telles, T. S., Caldarelli, C. E., & Camara, M. R. G. D. (2019). The dynamics of coffee production in Brazil. PLoS One, 14(7), e0219742. http://dx.doi.org/10.1371/journal.pone.0219742. PMid:31335891.
http://dx.doi.org/10.1371/journal.pone.0...
; Miller & Upadhyay, 2000Miller, S. M., & Upadhyay, M. P. (2000). The effects of openness, trade orientation, and human capital on total factor productivity. Journal of Development Economics, 63(2), 399-423. http://dx.doi.org/10.1016/S0304-3878(00)00112-7.
http://dx.doi.org/10.1016/S0304-3878(00)...
). Improvements in inputs and technology on Nigeria's labour-intensive coffee farms could boost output (Nolte & Ostermeier, 2017Nolte, K., & Ostermeier, M. (2017). Labour market effects of large-scale agricultural investment: conceptual considerations and estimated employment effects. World Development, 98, 430-446. http://dx.doi.org/10.1016/j.worlddev.2017.05.012.
http://dx.doi.org/10.1016/j.worlddev.201...
; Fuglie & Rada, 2013Fuglie, K., & Rada, N. (2013). Resources, policies, and agricultural productivity in sub-Saharan Africa (USDA-ERS Economic Research Report, No. 145). Washington: USDA.).

These factors are critical to the growth of coffee. Solow and Swan developed the neoclassical growth theory in 1956. The foundation of ARDL is Neoclassical Growth Theory, which has been the standard model for predicting long-run production (Asghar et al., 2020Asghar, N., Qureshi, D. S., & Nadeem, M. (2020). Institutional quality and economic growth: panel ARDL analysis for selected developing economies of Asia. South Asian Studies, 30(2), 381-404.; Sakyi, 2011Sakyi, D. (2011). Trade openness, foreign aid and economic growth in post-liberalisation Ghana: an application of ARDL bounds test. Journal of Economics and International Finance, 3(3), 146-156.; Adeyemi & Ogunsola, 2016Adeyemi, P. A., & Ogunsola, A. J. (2016). The impact of human capital development on economic growth in Nigeria: ARDL approach. IOSR Journal of Humanities and Social Science, 21(3), 1-7.; Yusuf & Mohd, 2021Yusuf, A., & Mohd, S. (2021). The impact of government debt on economic growth in Nigeria. Cogent Economics & Finance, 9(1), 1946249. http://dx.doi.org/10.1080/23322039.2021.1946249.
http://dx.doi.org/10.1080/23322039.2021....
; Growiec et al., 2018Growiec, J., McAdam, P., & Mućk, J. (2018). Endogenous labor share cycles: theory and evidence. Journal of Economic Dynamics & Control, 87, 74-93. http://dx.doi.org/10.1016/j.jedc.2017.11.007.
http://dx.doi.org/10.1016/j.jedc.2017.11...
; Rumanzi et al., 2021Rumanzi, P. I., Turyareeba, D., Kaberuka, W., Mbabazize, R. N., & Ainomugisha, P. (2021). Uganda’s growth determinants: a test of the relevance of the neoclassical growth theory. Modern Economy, 12(1), 107-139. http://dx.doi.org/10.4236/me.2021.121006.
http://dx.doi.org/10.4236/me.2021.121006...
). According to the neoclassical theory of growth, capital, labour, and technology must all be in appropriate proportions. Before this can happen, the scale of the capital, labour, and technology involved in producing more coffee needs to be adjusted, long-term equilibrium does not take any of these three factors into account. The theory emphasises the interaction of the various factors involved in coffee production.

3 Materials and methods

The Food and Agriculture Organization (FAO) database, the World Bank's World Development Indicators (WDI), the Central Bank of Nigeria statistical bulletin, and the International Coffee Organization (ICO) are the sources of data analysed, which spanned the years 1981 to 2019 (see Appendix A Appendix A Data set analyzed. year area harvested (ha) output of coffee (tonnes) producer price naira Fertiliser (kilograms per hectare of arable land) temperature change (centigrade) credit to agriculture in naira ('000000) 1981 6000 3000 1155 12.9479 0.195 0.01 1982 6000 3000 1155 12.2189 0.377 0.01 1983 6000 3000 1255 14.8243 0.279 0.01 1984 8000 4000 1405 12.6762 0.82 0.02 1985 12000 6000 1450 9.67826 0.416 0.02 1986 2400 1200 4000 9.21393 0.552 0.02 1987 3000 1500 5500 8.43196 0.855 0.05 1988 3000 1570 6000 11.568 0.538 0.08 1989 3400 2570 7464 12.9557 -0.363 0.15 1990 3434 3030 6680 14.211 0.619 0.26 1991 3500 3200 8750 14.3067 0.653 0.21 1992 3600 3380 151667 14.6179 -0.085 0.46 1993 3700 3580 120000 15.3156 0.545 1.80 1994 4000 3720 74167 9.54839 0.471 1.18 1995 3122 3090 148000 5.56231 0.448 1.51 1996 3652 3780 135000 5.24169 0.789 1.82 1997 3444 3700 132500 4.14759 0.71 2.06 1998 3300 3700 70020 4.8 1.078 2.89 1999 3130 3750 65630 4.79143 0.812 59.32 2000 3190 3830 68610 5.35714 0.565 6.34 2001 3210 3850 67930 6.69697 0.249 7.06 2002 3330 4100 159497 4.52888 0.779 9.99 2003 3540 4360 185176 6.141 0.838 7.54 2004 3580 4660 307616 4.54511 0.757 11.30 2005 3670 4990 283622 7.19733 1.255 16.30 2006 3710 5340 357371 10.0389 1.283 17.92 2007 2000 2520 371661 4.20505 0.875 32.48 2008 2100 3000 292762 5.87683 0.631 65.40 2009 1800 2040 456231 5.26103 1.369 22.44 2010 1990 2400 745535 12.2137 1.492 28.22 2011 1942 2525 770003 6.56129 0.9 41.20 2012 1893 2417 510425 8.6687 0.577 33.30 2013 1639 2100 367621 9.01817 0.964 39.43 2014 1520 1972 590737 9.50187 1.048 36.70 2015 1345 1755 504867 8.45716 1.228 41.27 2016 1138 1466 793572 11.4072 1.214 36.30 2017 1002 1290 808981 21.06 1.19 50.26 2018 901 1161 688294 19.7373 1.069 53.99 2019 868 1117 899937 1.26 70.27 Variables Source area harvest FAOSTAT output FAOSTAT price (1981-2002) FAOSTAT price (2003-2019) ICO fertiliser WDI temperature FAOSTAT agriculture capital CBN Estimation command using Eviews ARDL(DEPLAGS=2, REGLAGS=2, IC=HQ) OUT TEMP PRICE LAND FERT CAP @ @EXPAND(@MONTH,@DROPFIRST) OUT = C(1)*OUT(-1) + C(2)*TEMP + C(3)*PRICE + C(4)*LAND + C(5)*LAND(-1) + C(6)*FERT + C(7)*FERT(-1) + C(8)*CAP + C(9) ); while the Auto-Regressive Distributed Lag (ARDL) model regression approach for the data analysis.

3.1 The ADF test for Unit root test

The ADF test consist of estimating the following regression:

Δ Y t = β 1 + β 1 + δ Y t 1 + Σ m t = 1 i Δ Y t 1 + e t (1)

The null hypothesis is δ=0 versus δ<o (thus, expansive negative estimations of the test measurements prompt the dismissal of the invalid), and Δ is the difference operator. The alternative requires that Yt be differed to achieve stationarity; the alternative does not require that Yt be differed because it is already stationary (Dickey & Fuller, 1981Dickey, D. A., & Fuller, W. A. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49(4), 1057-1072. http://dx.doi.org/10.2307/1912517.
http://dx.doi.org/10.2307/1912517...
).

3.2 The Auto-Regressive Distributed Lag model

According to Pesaran et al. (2001)Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326. http://dx.doi.org/10.1002/jae.616.
http://dx.doi.org/10.1002/jae.616...
, the estimate of the Auto-regressive Distributed Lag (ARDL) model, also known as the bounds testing approach to cointegration, was used to investigate the dynamics of coffee output and climate change in Nigeria. The ARDL is used on time series data with integration orders of I (0) and I (1) (i.e. mixed order of integration) to generate an unbiased long-run estimate where a long-run connection exists (Bawa et al., 2016Bawa, S., Abdullahi, I. S., & Ibrahim, A. (2016). Analysis of inflation dynamics in Nigeria (1981-2015). CBN Journal of Applied Statistics, 7(1b), 255-276.; Udoh et al., 2015Udoh, E., Afangideh, U., & Udeaja, E. A. (2015). Fiscal decentralisation, economic growth and human resource development in Nigeria: Autoregressive Distributed Lag (ARDL) approach. CBN Journal of Applied Statistics, 6(1), 69-93.; Labibah et al., 2021Labibah, S., Jamal, A., & Dawood, T. C. (2021). Indonesian export analysis: Autoregressive Distributed Lag (ARDL) model approach. Journal of Economics, Business, & Accountancy Ventura, 23(3), 320-328.). The fundamental justification for using an ARDL model must be provided by an underlying economic theory or model, such as the neoclassical growth model. If the dependent variable must remain constant over time, the lags of the dependent variable and explanatory variables (The AR components) must be included (Shrestha & Bhatta, 2018Shrestha, M. B., & Bhatta, G. R. (2018). Selecting appropriate methodological framework for time series data analysis. The Journal of Finance and Data Science, 4(2), 71-89. http://dx.doi.org/10.1016/j.jfds.2017.11.001.
http://dx.doi.org/10.1016/j.jfds.2017.11...
; Okafor & Shaibu, 2016Okafor, C., & Shaibu, I. (2016). Modelling economic growth function in Nigeria: an ARDL approach. Asian Journal of Economics and Empirical Research, 3(1), 84-93. http://dx.doi.org/10.20448/journal.501/2016.3.1/501.1.84.93.
http://dx.doi.org/10.20448/journal.501/2...
). Other explanatory variables' lags must be included because they can have a long-term impact. Suppose the explanatory variables are stationary and there are enough observations. In that case, OLS standard coefficient estimates can be used because the correlation matrix of these explanatory variables (including lags) tends to be a positive-definite matrix as the number of observations increases and exogenetic conditions are met.

The first step in ARDL testing is to ensure that there is an optimal number of lags between I(1) and I(0) using the Akaike Information Criterion (AIC) or a Schwarze Bayesian Criterion (SBC). In the ARDL model, it is critical to ensure no endogeneity issues by ensuring that the lag structure is both optimal and sufficient (see Appendix B Appendix B Lag selection criteria. Model LogL AIC* BIC HQ Adj. R-sq Specification 2119 -248.686588 14.839234 15.328057 15.007975 0.920593 ARDL(1, 3, 0, 1, 1) 1994 -247.874445 14.849968 15.383230 15.034050 0.920898 ARDL(1, 4, 0, 1, 1) 1119 -249.377880 14.878736 15.367560 15.047478 0.917394 ARDL(3, 1, 0, 1, 1) 2118 -248.546633 14.888379 15.421641 15.072461 0.917801 ARDL(1, 3, 0, 1, 2) 1991 -245.555924 14.888910 15.555488 15.119012 0.920321 ARDL(1, 4, 0, 1, 4) 1494 -248.657920 14.894738 15.428001 15.078820 0.917277 ARDL(2, 3, 0, 1, 1) 1989 -247.659931 14.894853 15.472554 15.094275 0.918310 ARDL(1, 4, 0, 2, 1) 2114 -248.664986 14.895142 15.428404 15.079224 0.917243 ARDL(1, 3, 0, 2, 1) 2094 -248.677589 14.895862 15.429124 15.079944 0.917184 ARDL(1, 3, 1, 1, 1) 2116 -246.766599 14.900949 15.523088 15.115711 0.918679 ARDL(1, 3, 0, 1, 4) 1495 -249.781562 14.901804 15.390627 15.070545 0.915466 ARDL(2, 3, 0, 1, 0) 1369 -247.853313 14.905904 15.483604 15.105326 0.917403 ARDL(2, 4, 0, 1, 1) 1969 -247.870263 14.906872 15.484573 15.106294 0.917323 ARDL(1, 4, 1, 1, 1) 1993 -247.872338 14.906991 15.484691 15.106413 0.917313 ARDL(1, 4, 0, 1, 2) 1370 -249.125366 14.921449 15.454712 15.105532 0.915037 ARDL(2, 4, 0, 1, 0) 1114 -249.218962 14.926798 15.460060 15.110880 0.914582 ARDL(3, 1, 0, 2, 1) 494 -249.263707 14.929355 15.462617 15.113437 0.914363 ARDL(4, 1, 0, 1, 1) 1919 -246.268637 14.929636 15.596214 15.159739 0.917009 ARDL(1, 4, 3, 1, 1) 2120 -251.293278 14.931044 15.375430 15.084446 0.911526 ARDL(1, 3, 0, 1, 0) 994 -249.312479 14.932142 15.465404 15.116224 0.914124 ARDL(3, 2, 0, 1, 1) 1941 -244.346432 14.934082 15.689537 15.194865 0.917380 ARDL(1, 4, 2, 1, 4) 2044 -247.356718 14.934670 15.556809 15.149432 0.915890 ARDL(1, 3, 3, 1, 1) * Selection criteria. ). To test the validity of the cointegration, the error correction model must be negative, indicating that exogenous variables and computed t-values return to long-run equilibrium levels. The unit root tests can be used to validate the constant mean and variance of time series (Tinoco-Zermeno et al., 2014Tinoco-Zermeno, M. A., Venegas-Martínez, F., & Torres-Preciado, V. H. (2014). Growth, bank credit, and inflation in Mexico: evidence from an ARDL-bounds testing approach. Latin American Economic Review, 23(1), 1-22. http://dx.doi.org/10.1007/s40503-014-0008-0.
http://dx.doi.org/10.1007/s40503-014-000...
). In the ARDL model, a combination of I(0) and I(1) is the best way to integrate variables, but not when a variable is integrated I(1) (2). According to ARDL, when I(0) and I(1) are met, the model provides more accurate estimates, and the F-statistics of the bound test show a long-term relationship between the variables. Because there is only one co-integrating vector, the ARDL model is best suited for this analysis. Due to its robustness and excellent performance with a sample size of 40, the ARDL model is selected (Latif et al., 2015Latif, N. W. A., Abdullah, Z., & Razdi, M. A. M. (2015). An autoregressive distributed lag (ARDL) analysis of the nexus between savings and investment in the three Asian economies. Journal of Developing Areas, 49(3), 323-334. http://dx.doi.org/10.1353/jda.2015.0154.
http://dx.doi.org/10.1353/jda.2015.0154...
). The ARDL model can produce asymptotically normal estimates of the long-run coefficients regardless of whether the underlying regressors are integrated at level and first difference (Pesaran & Shin, 1995Pesaran, M. H., & Shin, Y. (1995). An autoregressive distributed lag modelling approach to cointegration analysis (No. 9514). Cambridge: Faculty of Economics, University of Cambridge.). When some economic variables are taken into account and policy recommendations are required, the ARDL model plays a critical role (Nkoro & Uko, 2016Nkoro, E., & Uko, A. K. (2016). Autoregressive Distributed Lag (ARDL) cointegration technique: application and interpretation. Journal of Statistical and Econometric Methods, 5(4), 63-91.).We estimated the model as follows.

o u t p u t = c o + δ 1 o u t p u t t - 1 + δ 2 t e m p e r a t u r e t - 1 + δ 3 p r i c e t - 1 + δ 4 l a n d t - 1 + δ 5 f e r t i l i z e r t - 1 + δ 6 c a p i t a l t - 1 + i = 1 p 4 b 1 o u t p u t t - 1 + i = 0 p b 2 t e m p e r a t u r e t - 1 + i = 0 p 1 b 3 p r i c e t - 1 + i = 0 p 4 b 4 l a n d t - 1 + i = 0 p b 5 f e r t i l i z e r t - 1 + i = 0 p b 6 c a p i t a l t - 1 + ε t (2)

Where δi refers for long-run multipliers, co represents constant, εt is the error term and bi for coefficients. The lag duration is p, and the error term is t. The ARDL bound test following Equation 1 to test for the existence of a long-run relationship.

the ARDL bound test was done following Equation 1 to test for the existence of a long-run relationship. We tested the following hypotheses.

H0 = the long-run multipliers are not significantly different from zero (H0 = δ123456=0)

Ha= the long-run multipliers are significantly different from zero (Ha= δ1≠δ2≠δ3≠δ4≠ δ5≠δ60)

The bound test shows that there is long-run relationship existing between the variables, this is because the F-calculated value did not fall within or equal to the tabulated values. It implies that long and short-run relationships exist.

The long-run dynamic parameters are derived by estimating the model (2)

o u t p u t = c o + i = 1 p 1 b 1 o u t p u t t - 1 + i = 0 p b 2 t e m p e r a t u r e t - 1 + i = 0 p b 3 p r i c e t - 1 + i = 0 p 1 b 4 l a n d t - 1 + i = 0 p 1 b 5 f e r t i l i z e r t - 1 + i = 0 p b 6 c a p i t a l t - 1 + μ t (3)

The short-run dynamic parameters are derived by estimating the error correction model

o u t p u t = c o + i = 1 p 1 b 1 o u t p u t t - 1 + i = 0 p b 2 t e m p e r a t u r e t - 1 + i = 0 p b 3 p r i c e t - 1 + i = 0 p 1 b 4 l a n d t - 1 + i = 0 p 1 b 5 f e r t i l i z e r t - 1 + i = 0 p b 6 c a p i t a l t - 1 + ϑ e c m t - 1 (4)

Where ECM is the error correction term of Equation 3 and ϑ is the speed of adjustment. We define the other symbols in the equations:

Output= Coffee output (tonnes)

Temperature = temperature change (°C)

price = producer price of coffee (₦)

Land = Area of land harvested (ha)

Fertiliser = Fertiliser consumption (kilograms per hectare of arable land)

capital = Recurrent Expenditure on agriculture (₦)

Δ= Difference operator

= summation sign

4 Results and discussion

Table 1 shows the results of the unit root test using Augmented Dickey-Fuller, which demonstrated that the variables under examination are stationary at the level and first difference. The presence of unit roots in the data suggests that shocks have a long or short term impact (Labibah et al., 2021Labibah, S., Jamal, A., & Dawood, T. C. (2021). Indonesian export analysis: Autoregressive Distributed Lag (ARDL) model approach. Journal of Economics, Business, & Accountancy Ventura, 23(3), 320-328.).

Table 1
Unit root test Augmented Dickey Fuller.

Figure 1 shows the trend in Nigerian coffee production from 1981 to 2019, as well as a 10-year prediction. The coffee production from 1981 to 2019 shows a decreasing trend. In 1981, Nigerian coffee output was 3000 tonnes, but it peaked at 6000 tonnes in 1984 and then plummeted to 1200 tonnes in 1985. This tendency was also seen in Latin America and other coffee-producing countries (Lewin et al., 2004Lewin, B., Giovannucci, D., & Varangis, P. (2004). Coffee markets new paradigms in global supply and demand. Washington: The International Bank for Reconstruction and Development Agriculture and Rural Development Department. http://dx.doi.org/10.2139/ssrn.996111.
http://dx.doi.org/10.2139/ssrn.996111...
; Akpan et al., 2012Akpan, S. B., Ini-mfon, V. P., & Daniel, E. J. (2012). Empirical relationship between trends in cash crop output volatility and agricultural policy periods in Nigeria. International Journal of Economics and Management Sciences, 1(11), 57-65. Retrieved in 2022, June 5, from https://www.hilarispublisher.com/open-access/empirical-relationship-between-trends-in-cash-crop-output-volatility-and-agricultural-policyperiods-in-nigeria-2162-6359-1-104.pdf
https://www.hilarispublisher.com/open-ac...
). Since 1986, the trend in output has been fluctuating, with a declining pattern since 2012; Alli et al. (2021)Alli, M. A., Kehinde, A. A., Mutiat, O. A., Adejoke, A. A., Qudus, A. O., Chinweike, A. U., & Ayodele, O. A. (2021). Review on coffee research and production in Nigeria in the last one decade (2009- 2018). World Journal of Advanced Research and Reviews, 9(1), 31-36. http://dx.doi.org/10.30574/wjarr.2021.9.1.0501.
http://dx.doi.org/10.30574/wjarr.2021.9....
also found a downward trend in coffee output from Nigeria since 2012. Based on a 10-year forecast, the trend-line reveals that coffee output in Nigeria would decline, consistent with Lewin et al.'s findings (2014). From 2010 to 2014, diseases such as coffee berry disease, coffee wilt, and root-rot disease devastated many coffee farms worldwide, contributing to a decline in coffee production. The impact of climate change has been prominent in causing the decline, with erratic rainfall and changing temperatures in coffee-producing areas causing the decline.

Figure 1
The trend in Nigerian coffee production.

The government established the Agricultural Development Program (ADP), which was critical in growing crops such as coffee. Due to a drop in oil prices that began in 1982, there were insufficient funds to complete the projects, resulting in delays and reduced coffee production (Ambali & Murana, 2017Ambali, A. R., & Murana, A. O. (2017). A reflection on the challenges in Nigerian agricultural policies and the way forward. The Journal of American Science, 14(1), 1-17.). Another reason for the decline in coffee production is that ADP emphasises modern, high-input techniques such as sole cropping, whereas most farmers still use mixed or relay cropping methods (Ofana et al. 2016Ofana, O. G., Efefiom, E. C., & Omini, E. E. (2016). Constraints to agricultural development in Nigeria. International Journal of Development and Economic Sustainability, 4(2), 19-33.). The late 1990s and early 2000s in Nigeria were marked by trade liberalisation, and this era boosted coffee production, particularly from 1995 to 2007. (Soule, 2013Soule, B. G. (2013). Analytical review of national investment strategies and agricultural policies for the promotion of staple food value chains in West Africa: West African food systems: an overview of trends and indicators of demand, supply and trade. Rebuilding West Africa's food potential: policies and market incentives for small holder-inclusive food value chains. Rome: Food and Agricultural Organization of the United Nations, International Fund for Agricultural Development.). From 2010 to 2015, there was an effort to increase commitment to the production of staple crops at the expense of traditional cash crops such as coffee, which was pushed by the Comprehensive Africa Agricultural Development Program (CAADP). Coffee production fell significantly from 2010 to 2019 (Hallam & Willebois, 2013Hallam, D., & Willebois, I. (2013), Forward: West African Food Systems: an overview of trends and indicators of demand, supply and trade. Rebuilding West Africa's food potential: policies and market incentives for small holder-inclusive food value chains. Rome: Food and Agricultural Organization of the United Nations, International Fund for Agricultural Development.).Recently, the country's coffee production has decreased. In 2007, Nigerian farmers produced 5340 tonnes of coffee, but this number dropped by more than 70% in 2018. Small-scale farmers in developing countries like Nigeria, who lack adequate technical education and face low market prices, have poor management, low productivity and abandoned farms (D'Haese et al., 2004D'Haese, M., Vannoppen, J., & Van Huylenbroeck, G. (2004). Small-scale farmers in developing countries facing globalising markets: importance of labelling fair-trade coffee. In 85th EAAE Seminar on Agricultural Development and Rural Poverty under Globalisation: Asymmetric Processes and Differentiated Outcomes. Florence: EAAE.; Alli et al., 2021Alli, M. A., Kehinde, A. A., Mutiat, O. A., Adejoke, A. A., Qudus, A. O., Chinweike, A. U., & Ayodele, O. A. (2021). Review on coffee research and production in Nigeria in the last one decade (2009- 2018). World Journal of Advanced Research and Reviews, 9(1), 31-36. http://dx.doi.org/10.30574/wjarr.2021.9.1.0501.
http://dx.doi.org/10.30574/wjarr.2021.9....
). As the price of coffee has dropped, many small-scale farmers have been discouraged from producing it, resulting in a drop in coffee production in Nigeria. For local coffee farmers in Nigeria, the lack of a national coffee policy is a major issue (Ayoola et al., 2012Ayoola, J. B., Ayoola, G. B., & Ladele, A. A. (2012). An assessment of factors constraining coffee production and marketing in Nigeria. International Journal of Science and Nature, 3(3), 678-683.; Sachs et al., 2019Sachs, J. D., Cordes, K. Y., Rising, J., Toledano, P., & Maennling, N. (2019). Ensuring economic viability and sustainability of coffee production. New York: Columbia Center on Sustainable Investment.). The national policy framework developed by Nigeria, the National Tea and Coffee development Council, is not fully implemented. Even the largest coffee companies in the country use beans from other countries to make instant coffee, which is still not widely consumed in the country (Oniku & Akintimehin, 2021Oniku, A. C., & Akintimehin, O. (2021). Coffee culture: will Nigerians drink coffee like others? Journal of Humanities and Applied Social Sciences, 4(3), 236-250. http://dx.doi.org/10.1108/JHASS-03-2021-0046.
http://dx.doi.org/10.1108/JHASS-03-2021-...
; Pelupessy, 2007Pelupessy, W. (2007). The world behind the world coffee market. Etudes Rurales, (180), 187-212. http://dx.doi.org/10.4000/etudesrurales.8564.
http://dx.doi.org/10.4000/etudesrurales....
). The lack of commitment of large coffee companies has harmed the entire value chain (Lewin et al., 2004Lewin, B., Giovannucci, D., & Varangis, P. (2004). Coffee markets new paradigms in global supply and demand. Washington: The International Bank for Reconstruction and Development Agriculture and Rural Development Department. http://dx.doi.org/10.2139/ssrn.996111.
http://dx.doi.org/10.2139/ssrn.996111...
).

The bound test presented in Table 2 reveals that the variables have a long-run relationship, necessitating the estimate of an ARDL model. The F-statistics value of 1.465 is more than both the lower and upper I(0) bounds.

Table 2
ARDL Bound Test.

Table 3 shows the short-run and long-run ARDL model estimates from Equation 4 for the dynamics of coffee output and climate change. In the short run, land was statistically significant at 1% and had a positive coefficient in the long run. This result implies that the access to land by the coffee farmers led to the increase in the quantity of coffee produced in the short-run, which is applicable in the long-run because of the importance of land in the cultivation of coffee. According to Mohammed et al. (2013)Mohammed, A. B., Ayanlere, A. F., & Ekenta, C. M. (2013). Profitability of coffee production in Kabba/Bunu local government area of Kogi State Nigeria. African Journal of Agricultural Research, 8(23), 2897-2902. and Degaga (2020)Degaga, J. (2020). Review on coffee production and marketing in Ethiopia. Journal of Marketing and Consumer Research, 67, 7-15., the size of the land used in coffee farming has a significant impact on the output of coffee. This is because the amount of other inputs to be used is dependent on the size of the land utilised. There are significant areas of land in Nigeria where coffee can be grown; states such as Taraba, Abia, Kogi, Kwara, and Ogun have a significant land mass for commercial coffee production, and the area harvested of coffee in 2018 was 1483ha (Alli et al., 2021Alli, M. A., Kehinde, A. A., Mutiat, O. A., Adejoke, A. A., Qudus, A. O., Chinweike, A. U., & Ayodele, O. A. (2021). Review on coffee research and production in Nigeria in the last one decade (2009- 2018). World Journal of Advanced Research and Reviews, 9(1), 31-36. http://dx.doi.org/10.30574/wjarr.2021.9.1.0501.
http://dx.doi.org/10.30574/wjarr.2021.9....
). Despite the vast amount of land available for coffee production and an estimated 200000 small-holder coffee farmers in Nigeria, Nigerian coffee's contribution to global production has remained negligible (ICC, 2015International Coffee Council – ICC. (2015). Sustainability of the coffee sector in Africa: 114th Session 2-6 March 2015. London. Retrieved in 2022, June 5, from http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
http://www.ico.org/documents/cy2014-15/i...
).

Table 3
ARDL Short-run and Long-run estimates.

Postharvest losses account for a large portion of Nigerian coffee production by small-scale farmers. Most of Nigeria's coffee is grown by small-holders on a few hectares (Alli et al., 2021Alli, M. A., Kehinde, A. A., Mutiat, O. A., Adejoke, A. A., Qudus, A. O., Chinweike, A. U., & Ayodele, O. A. (2021). Review on coffee research and production in Nigeria in the last one decade (2009- 2018). World Journal of Advanced Research and Reviews, 9(1), 31-36. http://dx.doi.org/10.30574/wjarr.2021.9.1.0501.
http://dx.doi.org/10.30574/wjarr.2021.9....
). reports have confirmed the heavy toll on coffee farmers, who have been forced to sell below cost or abandon their farms because current prices do not cover harvesting and transportation costs (ICC, 2015International Coffee Council – ICC. (2015). Sustainability of the coffee sector in Africa: 114th Session 2-6 March 2015. London. Retrieved in 2022, June 5, from http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
http://www.ico.org/documents/cy2014-15/i...
; Lewin et al., 2004Lewin, B., Giovannucci, D., & Varangis, P. (2004). Coffee markets new paradigms in global supply and demand. Washington: The International Bank for Reconstruction and Development Agriculture and Rural Development Department. http://dx.doi.org/10.2139/ssrn.996111.
http://dx.doi.org/10.2139/ssrn.996111...
). The state of insecurity and sociopolitical tension has limited access to small scale coffee farms; there have been reports of violent insurgency, attacks, kidnapping, communal conflicts, banditry, and rape in farmlands in coffee-producing areas, resulting in a contraction of coffee production and marketing (Bjornlund et al., 2022Bjornlund, V., Bjornlund, H., & van Rooyen, A. (2022). Why food insecurity persists in sub-Saharan Africa: a review of existing evidence. Food Security, 14(4), 845. http://dx.doi.org/10.1007/s12571-022-01256-1. PMid:35136455.
http://dx.doi.org/10.1007/s12571-022-012...
; Onwusiribe et al., 2015Onwusiribe, C. N., Nwaiwu, B. N., & Okpokiri, C. I. (2015). Assessment of north insurgency and performance of food dealers in Abia State, Nigeria. Scientific Papers: Management, Economic Engineering in Agriculture & Rural Development, 15(3), 1.; Kimenyi et al., 2014Kimenyi, M., Adibe, J., Djiré, M., Jirgi, A. J., Kergna, A., Deressa, T. T., & Westbury, A. (2014). The impact of conflict and political instability on agricultural investments in Mali and Nigeria (Working Paper, Vol. 17). Africa: Africa Growth Initiative.; Amalu, 2015Amalu, N. S. (2015). Impact of Boko Haram insurgency on human security in Nigeria. Global Journal of Social Sciences, 14(1), 35-42. http://dx.doi.org/10.4314/gjss.v14i1.4.
http://dx.doi.org/10.4314/gjss.v14i1.4...
). Land ownership laws, legislation, cultural and tribal beliefs all limit access to large areas of land suitable for coffee production. In Nigeria, all land belongs to the government, and bureaucratic bottlenecks in the land acquisition process are a significant impediment for coffee producers who want to devolve into large-scale coffee production (Oluwatayo et al., 2019Oluwatayo, I. B., Omowunmi, T., & Ojo, A. O. (2019). Land acquisition and use in Nigeria: implications for sustainable food and livelihood security. In L. Loures (Ed.), Land use: assessing the past, envisioning the future (pp. 91-110). London: IntechOpen.). The coffee industry is characterised by many small farmers who have no formal relationships with buyers, making synergy in land use for mechanisation extremely difficult.

In the short run, fertiliser use was positive and significant at 10%, and the coefficient is negative in the long run. The use of fertiliser by Nigerian coffee farmers results in an increase in the quantity of coffee produced in the short-run. However, the continuous application of fertiliser in the soil without proper soil management practices results in the reduction in the output of coffee farmers. According to Ayegboyin et al. (2015)Ayegboyin, K. O., Famaye, A. O., Akinrinde, E. A., Adejobi, K. B., & Akanbi, O. S. (2015). Growth performance and nutrient uptake of Coffea Canephora Prierre Ex. Froehner grown in contrasting soils. International Journal of Research Studies in Agricultural Sciences, 1(4), 25-31., fertiliser fertiliser application significantly improves soil aeration, soil structure, soil microorganisms, and water penetration, resulting in increased coffee yield. However, the unregulated use of fertiliser over a long period of time diminishes the soil quality. The preservation of soil organic matter is central to coffee production in Nigeria, and the use of NPK fertiliser in coffee farms has been shown to increase the intake of essential nutrient elements such as Ca, Mg, Cu, and others (Ayegboyin et al., 2015Ayegboyin, K. O., Famaye, A. O., Akinrinde, E. A., Adejobi, K. B., & Akanbi, O. S. (2015). Growth performance and nutrient uptake of Coffea Canephora Prierre Ex. Froehner grown in contrasting soils. International Journal of Research Studies in Agricultural Sciences, 1(4), 25-31.). Organic fertiliser application improves soil microorganism activity, soil structure, aeration, and water penetration (Ngaruiya, 1995Ngaruiya, J. K. (1995). Better coffee farming: fertiliser application. Kenya Coffee, 60(709), 2113-2115.). The long-run coefficient is negative because coffee soils leach nutrients, resulting in low organic matter content and the need for careful management to support crop yield (Dawid, 2018Dawid, J. (2018). Organic fertilisers requirement of coffee (Coffea arabica L) review. International Journal of Research Studies in Agricultural Sciences, 4(8). http://dx.doi.org/10.20431/2454-6224.0407003.
http://dx.doi.org/10.20431/2454-6224.040...
). The proper management of coffee farm soil to improve organic matter content is critical for the long-term sustainability of small scale coffee farms in Nigeria to increase coffee output (Lal, 1987Lal, R. (1987). Managing the soils of sub-Saharan Africa. Science, 236(4805), 1069-1076. http://dx.doi.org/10.1126/science.236.4805.1069. PMid:17799662.
http://dx.doi.org/10.1126/science.236.48...
). Nigeria has implemented various fertiliser subsidy regimes, resulting in a short-term increase in coffee production (Alabi & Adams, 2015Alabi, R. A., & Adams, O. O. (2015). The pro-poorness of fertiliser subsidy and its implications on food security in Nigeria. Nairobi: African Economic Research Consortium. Work in Progress (WIP) Report.; Michael et al., 2018Michael, A., Tashikalma, A. K., & Maurice, D. C. (2018). Agricultural inputs subsidy in Nigeria: an overview of the growth enhancement support scheme (GESS). Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 66(3), 781-789. http://dx.doi.org/10.11118/actaun201866030781.
http://dx.doi.org/10.11118/actaun2018660...
). Continuous application of inorganic fertiliser reduces long-term coffee output. There have been instances where coffee farmers were unable to obtain subsidised fertilisers, resulting in a significant decrease in coffee output (Lewin et al., 2004Lewin, B., Giovannucci, D., & Varangis, P. (2004). Coffee markets new paradigms in global supply and demand. Washington: The International Bank for Reconstruction and Development Agriculture and Rural Development Department. http://dx.doi.org/10.2139/ssrn.996111.
http://dx.doi.org/10.2139/ssrn.996111...
).

The coefficient for temperature change was negative in the short and long run, implying that persistent climate change influences coffee production in the short and long term. According to Okoisu et al. (2019), climate change has resulted in a decrease in the amount of coffee produced in Nigeria. Many coffee-growing countries have seen their output fluctuate due to temperature changes. The real changes in where and how coffee is grown are expected as a result of global warming (Gokavi & Kishor, 2020Gokavi, N., & Kishor, M. (2020). Impact of climate change on coffee production: an overview. Journal of Pharmacognosy and Phytochemistry, 9(3), 1850-1858.). According to scientists, one of the world's most popular beverages may become extinct if conservation and monitoring measures are not implemented (Davis et al., 2012Davis, A. P., Gole, T. W., Baena, S., & Moat, J. (2012). The impact of climate change on indigenous arabica coffee (Coffea arabica): predicting future trends and identifying priorities. PLoS One, 7(11), e47981. http://dx.doi.org/10.1371/journal.pone.0047981. PMid:23144840.
http://dx.doi.org/10.1371/journal.pone.0...
; Feria-Morales, 2002Feria-Morales, A. M. (2002). Examining the case of green coffee to illustrate the limitations of grading systems/expert tasters in sensory evaluation for quality control. Food Quality and Preference, 13(6), 355-367. http://dx.doi.org/10.1016/S0950-3293(02)00028-9.
http://dx.doi.org/10.1016/S0950-3293(02)...
; Castillo et al., 2020Castillo, N. E. T., Melchor-Martínez, E. M., Sierra, J. S. O., Ramirez-Mendoza, R. A., Parra-Saldívar, R., & Iqbal, H. M. N. (2020). Impact of climate change and early development of coffee rust–an overview of control strategies to preserve organic cultivars in Mexico. The Science of the Total Environment, 738, 140225. http://dx.doi.org/10.1016/j.scitotenv.2020.140225. PMid:32806380.
http://dx.doi.org/10.1016/j.scitotenv.20...
). The quality of coffee decreases as the temperature rises, making coffee plants sensitive to microclimate changes (Ogundeji et al., 2019Ogundeji, B. A., Olalekan-Adeniran, M. A., Orimogunje, O. A., Awoyemi, S. O., Yekini, B. A., Adewoye, G. A., & Bankole, I. A. (2019). Climate hazards and the changing world of coffee pests and diseases in Sub-Saharan Africa. Journal of Experimental Agriculture International, 41(6), 1-12. http://dx.doi.org/10.9734/jeai/2019/v41i630429.
http://dx.doi.org/10.9734/jeai/2019/v41i...
). While temperatures of 23 °C or higher can hasten fruit ripening and reduce product quality, temperatures of 18-21 °C are ideal for optimum growth and flavour (Ogundeji et al., 2019Ogundeji, B. A., Olalekan-Adeniran, M. A., Orimogunje, O. A., Awoyemi, S. O., Yekini, B. A., Adewoye, G. A., & Bankole, I. A. (2019). Climate hazards and the changing world of coffee pests and diseases in Sub-Saharan Africa. Journal of Experimental Agriculture International, 41(6), 1-12. http://dx.doi.org/10.9734/jeai/2019/v41i630429.
http://dx.doi.org/10.9734/jeai/2019/v41i...
). Because microclimate changes affect coffee quality, coffee plants are susceptible to them. Temperatures of 18-21 °C are ideal for fruit growth and flavour, while temperatures of 23 °C or higher can hasten to ripen and reduce product quality (Poltronieri & Rossi, 2016Poltronieri, P., & Rossi, F. (2016). Challenges in specialty coffee processing and quality assurance. Challenges, 7(2), 19. http://dx.doi.org/10.3390/challe7020019.
http://dx.doi.org/10.3390/challe7020019...
).

Climate data can help coffee farmers improve their risk management framework. Local demand for climate information must be identified to achieve this goal, and coffee yield relationships with climate variables, farmer perceptions, and local cocoa farmer actions must be investigated (Pons et al., 2021Pons, D., Muñoz, Á. G., Meléndez, L. M., Chocooj, M., Gómez, R., Chourio, X., & Romero, C. G. (2021). A coffee yield next-generation forecast system for rain-fed plantations: the case of the Samalá watershed in Guatemala. Weather and Forecasting, 36(6), 2021-2038. http://dx.doi.org/10.1175/WAF-D-20-0133.1.
http://dx.doi.org/10.1175/WAF-D-20-0133....
; Edet et al., 2018Edet, E. O., Udoe, P. O., & Abang, S. O. (2018). Economic impact of climate change on cocoa production among South-Western states, Nigeria: results from Ricardian analysis. Global Journal of Pure and Applied Sciences, 24(2), 171-180.).

The price of coffee has a negative coefficient in both the short and long run, meaning that the price of coffee is not competitive or fair to Nigerian coffee farmers. Coffee price has a negative elasticity (average yearly supply shift) with coffee supply (output), according to Ssenkaaba (2019)Ssenkaaba, J. (2019). Price determination in coffee market: the impact of supply and demand shifts (Master's thesis). School of Business and Economics, The Artic University of Norway, Norway. Retrieved in 2022, June 5, from https://munin.uit.no/bitstream/handle/10037/17572/thesis.pdf?sequence=2&isAllowed=y
https://munin.uit.no/bitstream/handle/10...
. Boansi & Crentsil (2013)Boansi, D., & Crentsil, C. (2013). Competitiveness and determinants of coffee exports, producer price and production for Ethiopia (MPRA Paper, No. 48869). Munich: Munich Personal RePEc Archive. Retrieved in 2022, June 5, from https://mpra.ub.uni-muenchen.de/48869/
https://mpra.ub.uni-muenchen.de/48869/...
, on the other hand, found that producer price had a positive impact on the quantity of coffee produced by Ethiopian farmers; the authors concluded that Ethiopian coffee is of high quality and hence fairly priced. Prices on the coffee market have been volatile. Arabica declines by 3% per year, while robusta declines by 5% (Ssenkaaba, 2019Ssenkaaba, J. (2019). Price determination in coffee market: the impact of supply and demand shifts (Master's thesis). School of Business and Economics, The Artic University of Norway, Norway. Retrieved in 2022, June 5, from https://munin.uit.no/bitstream/handle/10037/17572/thesis.pdf?sequence=2&isAllowed=y
https://munin.uit.no/bitstream/handle/10...
). Production increases as new lower-cost producers enter the market, export prices rise, and a cycle of renewable planting and innovation follows price spikes (Christensen, 2016Christensen, B. V. (2016). Challenges of low commodity prices for Africa (BIS Paper, No. 87). Basel: Bank for International Settlements.). Coffee demand and supply have always been influenced by price. The price is determined by supply and demand. For a sustainable coffee economy, producers should be paid competitive prices that cover production, living, and environmental costs, according to the International Coffee Committee (ICC) (Sachs et al., 2019Sachs, J. D., Cordes, K. Y., Rising, J., Toledano, P., & Maennling, N. (2019). Ensuring economic viability and sustainability of coffee production. New York: Columbia Center on Sustainable Investment.; ICC, 2015International Coffee Council – ICC. (2015). Sustainability of the coffee sector in Africa: 114th Session 2-6 March 2015. London. Retrieved in 2022, June 5, from http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
http://www.ico.org/documents/cy2014-15/i...
). Coffee bean prices fluctuate because neither supply nor demand is constant. Given that supply shifts have more positive and negative shifts, supply shifts have a greater influence on coffee price fluctuations than demand shifts (Ssenkaaba, 2019Ssenkaaba, J. (2019). Price determination in coffee market: the impact of supply and demand shifts (Master's thesis). School of Business and Economics, The Artic University of Norway, Norway. Retrieved in 2022, June 5, from https://munin.uit.no/bitstream/handle/10037/17572/thesis.pdf?sequence=2&isAllowed=y
https://munin.uit.no/bitstream/handle/10...
). Because Nigeria's economy is so reliant on oil exports, fluctuations in oil prices have a greater impact on coffee prices in Nigeria than anywhere else (Gylych et al., 2020Gylych, J., Jibrin, A. A., Celik, B., & Isik, A. (2020). Impact of oil price fluctuation on the economy of nigeria, the core analysis for energy producing countries. In M. Mohiuddin, J. Wang, M. S. Al Azad & S. Ahmed (Eds.), Global market in the Emerging Business Environment. London: IntechOpen.; Abdlaziz et al., 2018Abdlaziz, R. A., Naseem, N. A. M., & Slesman, L. (2018). Dutch disease effect of oil price on agriculture sector: evidence from panel cointegration of oil exporting countries. International Journal of Energy Economics and Policy, 8(5), 241.). This is not the case with other major coffee-producing countries.

The agricultural goods market alternates between high prices with high volatility and low prices with low volatility, and coffee is typical (IMF, 2011International Monetary Fund – IMF. United Nations Conference on Trade and Development – UNCTAD. (2011). Price volatility in food and agricultural markets: policy responses. Rome: FAO.). When coffee prices are low, farmers invest less. Climate change, pests and diseases, limited land and insufficient inputs, equipment, and market information all impact coffee supply and price.

In both the short and long term, capital spent on agriculture over the time studied had a negative coefficient, meaning that capital expenditure on agriculture in Nigeria was insufficient and not used efficiently for coffee production (see Table 3). Coffee farmers in Africa are cash-strapped due to a lack of credit and a high-risk assessment among lending institutions. Farmers do not have a well-diversified source of income, so they rely on their meagre personal savings to fund their coffee farms (AfDB, 2017African Development Bank (AfDB) Group – AfDB. (2017). Africa's coffee sector: status, challenges and opportunities for growth. Abidjan. Retrieved in 2022, June 5, from https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Africa_s_Coffee_Sector_Status__Challenges_and_Opportunities_for_Growth.pdf
https://www.afdb.org/fileadmin/uploads/a...
).

Capital is an important factor in increasing coffee productivity. Capital is essential for purchasing equipment, knowledge, land, and research for sustainable coffee development. According to Bukuru and Tabitha, capital investment positively affects coffee output (2021). Coffee producers in Nigeria have long faced a slew of capital constraints, and many of these can be attributed to low or volatile coffee prices. There is a need to increase the upstream flow of credit, thereby catalysing new productivity-enhancing investments and contributing to more profitable and sustainable coffee farmer livelihoods (Parizat et al., 2015Parizat, R., van Hilten, H. J., Tressler, E. G., Wheeler, M., Nsibirwa, R. W., Morahan, R., Modelo, M., Spolado, H., De Smet, J., & Pinto, D. (2015). Risk and finance in the coffee sector: a compendium of case studies related to improving risk management and access to finance in the coffee sector (No. 93923, pp. 1-132). Washington: World Bank.).

As shown in Table 4, the F-statistics value (0.525807) was statistically insignificant, implying that we accept the null hypothesis of no serial correlation in the ARDL model. The Breusch – Godfrey Correlation Lagrange Multiplier test produces probability values for F-statistics that are significant enough to reject the null hypothesis that there is no autocorrelation in the regression model residuals. We can conclude that the test is valid because it is not affected by serial correlation throughout the series.

Table 4
Breusch-Godfrey Serial Correlation LM Test.

Figure 2 shows the Cumulative Sum (CUSUM) Control Chart, which demonstrates the ARDL model's stability; the data are stable because the CUSUM graph is within the limits of the 5% significance level.

Figure 2
Cummulative Sum Control Chart.

5 Conclusion

The output of coffee in Nigeria has been declining, and the parameters examined in the ARDL model are critical in assessing the nature of the trend. In the short run, significant short-run factors such as land and fertiliser use are critical for coffee farmers' output to increase. In the long run, the usage of fertiliser has a negative impact on coffee farmers' output. Climate change, exacerbated by rising temperatures, has a short- and long-term negative impact on coffee farmers' output. The producer price of coffee has a negative short- and long-term impact on coffee farmers' output, meaning that the price of coffee is not fair enough to encourage them to produce more. Farmers' access to financing is restricted, as government funding has not resulted in an improvement in both short- and long-term coffee output. As a result, it is critical to make certain recommendations in order to avoid a predicted decline in coffee output.

There is a pressing need to encourage coffee farmers to embrace and adapt proven climate change mitigation strategies in order to slow the rate of temperature rises (global warming), which distorts the coffee production cycle and reduces accessible area for cultivation through desertification. Coffee farmers' associations and cooperative societies in coffee-growing regions should be at the forefront of disseminating information about climate change adaptation strategies. The recommendations on area for cultivation and climate change variables are because factors such as temperature and land have shortrun impact on coffee production. Price regulation through government policies is key in ensuring that coffee farmers obtain a fair price for their output; marketing board activation is also crucial in price regulation. It is critical to conserve farmland by amending land use laws to prevent it from being converted to residential areas.

There are some practical implications from the result of the study for producers and other stakeholders in the coffee food ecosystem. The result provides strong support for continue investment in coffee production but highlights obvious gaps in value chain acitivites in Nigeria and marketing issues. First, the decreasing trend in coffee production has negative impact on government desire to diversify Nigeria economy away from oil. This has severe implications for revenue, employment opportunities and the growth of Nigeria economy. Secondly, the importance of agricultural input materials like fertiliser provides direction for investment and scaling up of solutions around agricultural input services.

Given that government cannot address majority of these challenges, this study encourage the use of private-public partnership (PPP). This will reduce cost of procurement of input material and create economic opportunities. Thirdly, the significance of climate change and land issues emphasises the need to improve policies that address intelligent agricultural practices and review land use instruments that impede land ownership and access in Nigeria. There is a growing concern around climate change but it can be effective management with innovative and smart practices. However, this requires large investment and government support to mitigate risk. The risk of non-adherence to smart and innovative practices is higher.

Finally, the nexus between price and supply is not in doubt. With hgher price, there is the tendency to supply more. This requires development and invesmtnet in value chain activities, access to the market and management of supply chain networks. The reengineering of board must address two key fundamentals – creating demand from the consumer side, which will stimulate demand around innovative coffee market offerings, and connecting small scale resource coffee farmers to market with higher returns on their investment.

Appendix A  Data set analyzed.

year area harvested (ha) output of coffee (tonnes) producer price naira Fertiliser (kilograms per hectare of arable land) temperature change (centigrade) credit to agriculture in naira ('000000)
1981 6000 3000 1155 12.9479 0.195 0.01
1982 6000 3000 1155 12.2189 0.377 0.01
1983 6000 3000 1255 14.8243 0.279 0.01
1984 8000 4000 1405 12.6762 0.82 0.02
1985 12000 6000 1450 9.67826 0.416 0.02
1986 2400 1200 4000 9.21393 0.552 0.02
1987 3000 1500 5500 8.43196 0.855 0.05
1988 3000 1570 6000 11.568 0.538 0.08
1989 3400 2570 7464 12.9557 -0.363 0.15
1990 3434 3030 6680 14.211 0.619 0.26
1991 3500 3200 8750 14.3067 0.653 0.21
1992 3600 3380 151667 14.6179 -0.085 0.46
1993 3700 3580 120000 15.3156 0.545 1.80
1994 4000 3720 74167 9.54839 0.471 1.18
1995 3122 3090 148000 5.56231 0.448 1.51
1996 3652 3780 135000 5.24169 0.789 1.82
1997 3444 3700 132500 4.14759 0.71 2.06
1998 3300 3700 70020 4.8 1.078 2.89
1999 3130 3750 65630 4.79143 0.812 59.32
2000 3190 3830 68610 5.35714 0.565 6.34
2001 3210 3850 67930 6.69697 0.249 7.06
2002 3330 4100 159497 4.52888 0.779 9.99
2003 3540 4360 185176 6.141 0.838 7.54
2004 3580 4660 307616 4.54511 0.757 11.30
2005 3670 4990 283622 7.19733 1.255 16.30
2006 3710 5340 357371 10.0389 1.283 17.92
2007 2000 2520 371661 4.20505 0.875 32.48
2008 2100 3000 292762 5.87683 0.631 65.40
2009 1800 2040 456231 5.26103 1.369 22.44
2010 1990 2400 745535 12.2137 1.492 28.22
2011 1942 2525 770003 6.56129 0.9 41.20
2012 1893 2417 510425 8.6687 0.577 33.30
2013 1639 2100 367621 9.01817 0.964 39.43
2014 1520 1972 590737 9.50187 1.048 36.70
2015 1345 1755 504867 8.45716 1.228 41.27
2016 1138 1466 793572 11.4072 1.214 36.30
2017 1002 1290 808981 21.06 1.19 50.26
2018 901 1161 688294 19.7373 1.069 53.99
2019 868 1117 899937 1.26 70.27
Variables Source
area harvest FAOSTAT
output FAOSTAT
price
(1981-2002)
FAOSTAT
price
(2003-2019)
ICO
fertiliser WDI
temperature FAOSTAT
agriculture capital CBN

Estimation command using Eviews

ARDL(DEPLAGS=2, REGLAGS=2, IC=HQ) OUT TEMP PRICE LAND FERT CAP @ @EXPAND(@MONTH,@DROPFIRST)

OUT = C(1)*OUT(-1) + C(2)*TEMP + C(3)*PRICE + C(4)*LAND + C(5)*LAND(-1) + C(6)*FERT + C(7)*FERT(-1) + C(8)*CAP + C(9)

Appendix B  Lag selection criteria.

Model LogL AIC* * Selection criteria. BIC HQ Adj. R-sq Specification
2119 -248.686588 14.839234 15.328057 15.007975 0.920593 ARDL(1, 3, 0, 1, 1)
1994 -247.874445 14.849968 15.383230 15.034050 0.920898 ARDL(1, 4, 0, 1, 1)
1119 -249.377880 14.878736 15.367560 15.047478 0.917394 ARDL(3, 1, 0, 1, 1)
2118 -248.546633 14.888379 15.421641 15.072461 0.917801 ARDL(1, 3, 0, 1, 2)
1991 -245.555924 14.888910 15.555488 15.119012 0.920321 ARDL(1, 4, 0, 1, 4)
1494 -248.657920 14.894738 15.428001 15.078820 0.917277 ARDL(2, 3, 0, 1, 1)
1989 -247.659931 14.894853 15.472554 15.094275 0.918310 ARDL(1, 4, 0, 2, 1)
2114 -248.664986 14.895142 15.428404 15.079224 0.917243 ARDL(1, 3, 0, 2, 1)
2094 -248.677589 14.895862 15.429124 15.079944 0.917184 ARDL(1, 3, 1, 1, 1)
2116 -246.766599 14.900949 15.523088 15.115711 0.918679 ARDL(1, 3, 0, 1, 4)
1495 -249.781562 14.901804 15.390627 15.070545 0.915466 ARDL(2, 3, 0, 1, 0)
1369 -247.853313 14.905904 15.483604 15.105326 0.917403 ARDL(2, 4, 0, 1, 1)
1969 -247.870263 14.906872 15.484573 15.106294 0.917323 ARDL(1, 4, 1, 1, 1)
1993 -247.872338 14.906991 15.484691 15.106413 0.917313 ARDL(1, 4, 0, 1, 2)
1370 -249.125366 14.921449 15.454712 15.105532 0.915037 ARDL(2, 4, 0, 1, 0)
1114 -249.218962 14.926798 15.460060 15.110880 0.914582 ARDL(3, 1, 0, 2, 1)
494 -249.263707 14.929355 15.462617 15.113437 0.914363 ARDL(4, 1, 0, 1, 1)
1919 -246.268637 14.929636 15.596214 15.159739 0.917009 ARDL(1, 4, 3, 1, 1)
2120 -251.293278 14.931044 15.375430 15.084446 0.911526 ARDL(1, 3, 0, 1, 0)
994 -249.312479 14.932142 15.465404 15.116224 0.914124 ARDL(3, 2, 0, 1, 1)
1941 -244.346432 14.934082 15.689537 15.194865 0.917380 ARDL(1, 4, 2, 1, 4)
2044 -247.356718 14.934670 15.556809 15.149432 0.915890 ARDL(1, 3, 3, 1, 1)
  • *
    Selection criteria.
    • Financial support: None.
    • How to cite: Onwusiribe, N. C., Mbanasor, J. A., & Oteh, O. U. (2022). Dynamics of coffee output in Nigeria. Gestão & Produção, 29, e7621. https://doi.org/10.1590/1806-9649-2022v29e7621

    References

    • Ababu, D. G., & Getahun, A. M. (2021). Time series analysis of price of coffee in case of Mettu Town, Ilu Ababor Zone, Oromia Regional State, Ethiopia. Asian Journal of Dairy and Food Research, 40(3), 279-284. http://dx.doi.org/10.18805/ajdfr.DR-204
      » http://dx.doi.org/10.18805/ajdfr.DR-204
    • Abdlaziz, R. A., Naseem, N. A. M., & Slesman, L. (2018). Dutch disease effect of oil price on agriculture sector: evidence from panel cointegration of oil exporting countries. International Journal of Energy Economics and Policy, 8(5), 241.
    • Aderolu, I. A., Babalola, F. D., Ugioro, O., Anagbogu, C. F., Ndagi, I., Mokwunye, F. C., & Mokwunye, I. U. (2014). Production and marketing of Coffee (Coffea robusta) in Kogi State, Nigeria: challenges and recommendation for intervention. Journal of Social Science Research, 3(2), 207-215. http://dx.doi.org/10.24297/jssr.v3i2.3559
      » http://dx.doi.org/10.24297/jssr.v3i2.3559
    • Adeyemi, P. A., & Ogunsola, A. J. (2016). The impact of human capital development on economic growth in Nigeria: ARDL approach. IOSR Journal of Humanities and Social Science, 21(3), 1-7.
    • African Development Bank (AfDB) Group – AfDB. (2017). Africa's coffee sector: status, challenges and opportunities for growth. Abidjan. Retrieved in 2022, June 5, from https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Africa_s_Coffee_Sector_Status__Challenges_and_Opportunities_for_Growth.pdf
      » https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Africa_s_Coffee_Sector_Status__Challenges_and_Opportunities_for_Growth.pdf
    • Ahmed, S., Brinkley, S., Smith, E., Sela, A., Theisen, M., Thibodeau, C., Warne, T., Anderson, E., Van Dusen, N., Giuliano, P., Ionescu, K. E., & Cash, S. B. (2021). Climate change and coffee quality: systematic review on the effects of environmental and management variation on secondary metabolites and sensory attributes of Coffea arabica and Coffea canephora Frontiers in Plant Science, 12, 708013. http://dx.doi.org/10.3389/fpls.2021.708013 PMid:34691093.
      » http://dx.doi.org/10.3389/fpls.2021.708013
    • Akinpelu, A. O., Oluyole, K. A., Ugwu, C. A., & Alli, M. A. (2021). Determinants of coffee marketing among smallholder coffee farmers in Kogi State, Nigeria. Asian Journal of Agricultural and Horticultural Research, 8(3), 13-18. http://dx.doi.org/10.9734/ajahr/2021/v8i330116
      » http://dx.doi.org/10.9734/ajahr/2021/v8i330116
    • Akpan, S. B., Ini-mfon, V. P., & Daniel, E. J. (2012). Empirical relationship between trends in cash crop output volatility and agricultural policy periods in Nigeria. International Journal of Economics and Management Sciences, 1(11), 57-65. Retrieved in 2022, June 5, from https://www.hilarispublisher.com/open-access/empirical-relationship-between-trends-in-cash-crop-output-volatility-and-agricultural-policyperiods-in-nigeria-2162-6359-1-104.pdf
      » https://www.hilarispublisher.com/open-access/empirical-relationship-between-trends-in-cash-crop-output-volatility-and-agricultural-policyperiods-in-nigeria-2162-6359-1-104.pdf
    • Al-Abdulkader, A. M., Al-Namazi, A. A., AlTurki, T. A., Al-Khuraish, M. M., & Al-Dakhil, A. I. (2018). Optimising coffee cultivation and its impact on economic growth and export earnings of the producing countries: the case of Saudi Arabia. Saudi Journal of Biological Sciences, 25(4), 776-782. http://dx.doi.org/10.1016/j.sjbs.2017.08.016 PMid:29740243.
      » http://dx.doi.org/10.1016/j.sjbs.2017.08.016
    • Alabi, R. A., & Adams, O. O. (2015). The pro-poorness of fertiliser subsidy and its implications on food security in Nigeria. Nairobi: African Economic Research Consortium. Work in Progress (WIP) Report.
    • Alli, M. A., Kehinde, A. A., Mutiat, O. A., Adejoke, A. A., Qudus, A. O., Chinweike, A. U., & Ayodele, O. A. (2021). Review on coffee research and production in Nigeria in the last one decade (2009- 2018). World Journal of Advanced Research and Reviews, 9(1), 31-36. http://dx.doi.org/10.30574/wjarr.2021.9.1.0501
      » http://dx.doi.org/10.30574/wjarr.2021.9.1.0501
    • Amalu, N. S. (2015). Impact of Boko Haram insurgency on human security in Nigeria. Global Journal of Social Sciences, 14(1), 35-42. http://dx.doi.org/10.4314/gjss.v14i1.4
      » http://dx.doi.org/10.4314/gjss.v14i1.4
    • Ambali, A. R., & Murana, A. O. (2017). A reflection on the challenges in Nigerian agricultural policies and the way forward. The Journal of American Science, 14(1), 1-17.
    • Asghar, N., Qureshi, D. S., & Nadeem, M. (2020). Institutional quality and economic growth: panel ARDL analysis for selected developing economies of Asia. South Asian Studies, 30(2), 381-404.
    • Ayegboyin, K. O., Famaye, A. O., Akinrinde, E. A., Adejobi, K. B., & Akanbi, O. S. (2015). Growth performance and nutrient uptake of Coffea Canephora Prierre Ex. Froehner grown in contrasting soils. International Journal of Research Studies in Agricultural Sciences, 1(4), 25-31.
    • Ayele, A., Worku, M., & Bekele, Y. (2021). Trend, instability and decomposition analysis of coffee production in Ethiopia (1993-2019). Heliyon, 7(9), e08022. http://dx.doi.org/10.1016/j.heliyon.2021.e08022 PMid:34589632.
      » http://dx.doi.org/10.1016/j.heliyon.2021.e08022
    • Ayoola, J. B., Ayoola, G. B., & Ladele, A. A. (2012). An assessment of factors constraining coffee production and marketing in Nigeria. International Journal of Science and Nature, 3(3), 678-683.
    • Baca, M., Läderach, P., Haggar, J., Schroth, G., & Ovalle, O. (2014). An integrated framework for assessing vulnerability to climate change and developing adaptation strategies for coffee growing families in Mesoamerica. PLoS One, 9(2), e88463. http://dx.doi.org/10.1371/journal.pone.0088463 PMid:24586328.
      » http://dx.doi.org/10.1371/journal.pone.0088463
    • Bawa, S., Abdullahi, I. S., & Ibrahim, A. (2016). Analysis of inflation dynamics in Nigeria (1981-2015). CBN Journal of Applied Statistics, 7(1b), 255-276.
    • Bjornlund, V., Bjornlund, H., & van Rooyen, A. (2020). Why agricultural production in sub-Saharan Africa remains low compared to the rest of the world: a historical perspective. International Journal of Water Resources Development, 36(Suppl. 1), S20-S53. http://dx.doi.org/10.1080/07900627.2020.1739512
      » http://dx.doi.org/10.1080/07900627.2020.1739512
    • Bjornlund, V., Bjornlund, H., & van Rooyen, A. (2022). Why food insecurity persists in sub-Saharan Africa: a review of existing evidence. Food Security, 14(4), 845. http://dx.doi.org/10.1007/s12571-022-01256-1 PMid:35136455.
      » http://dx.doi.org/10.1007/s12571-022-01256-1
    • Boansi, D., & Crentsil, C. (2013). Competitiveness and determinants of coffee exports, producer price and production for Ethiopia (MPRA Paper, No. 48869). Munich: Munich Personal RePEc Archive. Retrieved in 2022, June 5, from https://mpra.ub.uni-muenchen.de/48869/
      » https://mpra.ub.uni-muenchen.de/48869/
    • Bukuru, E., & Tabitha, N. (2021). Financial factors affecting production efficiency of small scale coffee farms in Burundi. International Journal of Finance and Accounting, 6(2), 57-70. http://dx.doi.org/10.47604/ijfa.1424
      » http://dx.doi.org/10.47604/ijfa.1424
    • Castillo, N. E. T., Melchor-Martínez, E. M., Sierra, J. S. O., Ramirez-Mendoza, R. A., Parra-Saldívar, R., & Iqbal, H. M. N. (2020). Impact of climate change and early development of coffee rust–an overview of control strategies to preserve organic cultivars in Mexico. The Science of the Total Environment, 738, 140225. http://dx.doi.org/10.1016/j.scitotenv.2020.140225 PMid:32806380.
      » http://dx.doi.org/10.1016/j.scitotenv.2020.140225
    • Cervantes-Godoy, D., Dewbre, J., Amegnaglo, C. J., Soglo, Y. Y., Akpa, A. F., Bickel, M., & Swanson, B. E. (2014). The future of food and agriculture: trends and challenges (Tech. Rep.). Rome: FAO.
    • Christensen, B. V. (2016). Challenges of low commodity prices for Africa (BIS Paper, No. 87). Basel: Bank for International Settlements.
    • Cleland, D. (2010). The impacts of coffee production on local producers (Senior project). California Polytechnic State University, San Luis Obispo.
    • Czarniecka-Skubina, E., Pielak, M., Sałek, P., Korzeniowska-Ginter, R., & Owczarek, T.. (2021). Consumer choices and habits related to coffee consumption by poles. International Journal of Environmental Research and Public Health, 18(8), 3948. http://dx.doi.org/10.3390/ijerph18083948 PMid:33918643.
      » http://dx.doi.org/10.3390/ijerph18083948
    • DaMatta, F. M., & Ramalho, J. D. C. (2006). Impacts of drought and temperature stress on coffee physiology and production: a review. Brazilian Journal of Plant Physiology, 18(1), 55-81. http://dx.doi.org/10.1590/S1677-04202006000100006
      » http://dx.doi.org/10.1590/S1677-04202006000100006
    • Davis, A. P., Gole, T. W., Baena, S., & Moat, J. (2012). The impact of climate change on indigenous arabica coffee (Coffea arabica): predicting future trends and identifying priorities. PLoS One, 7(11), e47981. http://dx.doi.org/10.1371/journal.pone.0047981 PMid:23144840.
      » http://dx.doi.org/10.1371/journal.pone.0047981
    • Dawid, J. (2018). Organic fertilisers requirement of coffee (Coffea arabica L) review. International Journal of Research Studies in Agricultural Sciences, 4(8). http://dx.doi.org/10.20431/2454-6224.0407003
      » http://dx.doi.org/10.20431/2454-6224.0407003
    • Degaga, J. (2020). Review on coffee production and marketing in Ethiopia. Journal of Marketing and Consumer Research, 67, 7-15.
    • D'Haese, M., Vannoppen, J., & Van Huylenbroeck, G. (2004). Small-scale farmers in developing countries facing globalising markets: importance of labelling fair-trade coffee. In 85th EAAE Seminar on Agricultural Development and Rural Poverty under Globalisation: Asymmetric Processes and Differentiated Outcomes Florence: EAAE.
    • Dickey, D. A., & Fuller, W. A. (1981). Likelihood ratio statistics for autoregressive time series with a unit root. Econometrica, 49(4), 1057-1072. http://dx.doi.org/10.2307/1912517
      » http://dx.doi.org/10.2307/1912517
    • Dinham, B., & Hines, C. (1984). Agribusiness in Africa. Trenton: Africa World Press.
    • Duke, E. S., & Cornell, M. H. (2019, February). How climate change is killing coffee. Pennsylvania: Knowledge at Wharton. Austin. Retrieved in 2022, June 5, from http://www.coffeeresearch.org/agriculture/coffeeplant.htm
      » http://www.coffeeresearch.org/agriculture/coffeeplant.htm
    • Edet, E. O., Udoe, P. O., & Abang, S. O. (2018). Economic impact of climate change on cocoa production among South-Western states, Nigeria: results from Ricardian analysis. Global Journal of Pure and Applied Sciences, 24(2), 171-180.
    • Esquivel, V., & Jiménez, P. (2012). Functional properties of coffee and coffee by-products. Food Research International, 46(2), 488-495. http://dx.doi.org/10.1016/j.foodres.2011.05.028
      » http://dx.doi.org/10.1016/j.foodres.2011.05.028
    • Feria-Morales, A. M. (2002). Examining the case of green coffee to illustrate the limitations of grading systems/expert tasters in sensory evaluation for quality control. Food Quality and Preference, 13(6), 355-367. http://dx.doi.org/10.1016/S0950-3293(02)00028-9
      » http://dx.doi.org/10.1016/S0950-3293(02)00028-9
    • Fitter, R., & Kaplinksy, R. (2001). Who gains from product rents as the coffee market becomes more differentiated? A value‐chain analysis. IDS Bulletin, 32(3), 69-82. http://dx.doi.org/10.1111/j.1759-5436.2001.mp32003008.x
      » http://dx.doi.org/10.1111/j.1759-5436.2001.mp32003008.x
    • Food and Agriculture Organization of the United Nations – FAO. (2021). FAOSTAT: food balances (2010-) Retrieved in 2022, June 3, from http://www.fao.org/faostat/en/#data/FBS[REMOVED IF= FIELD]
      » http://www.fao.org/faostat/en/#data/FBS
    • Fuglie, K., & Rada, N. (2013). Resources, policies, and agricultural productivity in sub-Saharan Africa (USDA-ERS Economic Research Report, No. 145). Washington: USDA.
    • Gizaw, W. (2021). Spatio-temporal variation in area of production, number of holders and productivity of coffee (Coffea arabica L.) and Khat (Khat edulis L.) in West and East Hararghe Zone, Eastern Ethiopia. Journal of Climatology & Weather Forecasting, 9, 285.
    • Gizaw, W., Mengesha, M., & Nigatu, L. (2021). Analysis of rainfall and temperature variability impacts on coffee (Coffea arabica L.) productivity in Habro District, West Harerghe Zone. Eastern Ethiopia. Journal of Climatology and Weather Forecast, 283(9), 1-7.
    • Gokavi, N., & Kishor, M. (2020). Impact of climate change on coffee production: an overview. Journal of Pharmacognosy and Phytochemistry, 9(3), 1850-1858.
    • Growiec, J., McAdam, P., & Mućk, J. (2018). Endogenous labor share cycles: theory and evidence. Journal of Economic Dynamics & Control, 87, 74-93. http://dx.doi.org/10.1016/j.jedc.2017.11.007
      » http://dx.doi.org/10.1016/j.jedc.2017.11.007
    • Grüter, R., Trachsel, T., Laube, P., & Jaisli, I. (2022). Expected global suitability of coffee, cashew and avocado due to climate change. PLoS One, 17(1), e0261976. http://dx.doi.org/10.1371/journal.pone.0261976 PMid:35081123.
      » http://dx.doi.org/10.1371/journal.pone.0261976
    • Gylych, J., Jibrin, A. A., Celik, B., & Isik, A. (2020). Impact of oil price fluctuation on the economy of nigeria, the core analysis for energy producing countries. In M. Mohiuddin, J. Wang, M. S. Al Azad & S. Ahmed (Eds.), Global market in the Emerging Business Environment. London: IntechOpen.
    • Haider, H. (2019). Climate change in Nigeria: impacts and responses. London: K4D.
    • Hallam, D., & Willebois, I. (2013), Forward: West African Food Systems: an overview of trends and indicators of demand, supply and trade. Rebuilding West Africa's food potential: policies and market incentives for small holder-inclusive food value chains. Rome: Food and Agricultural Organization of the United Nations, International Fund for Agricultural Development.
    • Harris, E., Abdul-Aziz, A. R., & Avuglah, R. K. (2012). Modeling annual Coffee production in Ghana using ARIMA time series Model. International Journal of Business and Social Research, 2(7), 175-186.
    • Harvey, C. A., Pritts, A. A., Zwetsloot, M. J., Jansen, K., Pulleman, M. M., Armbrecht, I., Avelino, J., Barrera, J. F., Bunn, C., García, J. H., Isaza, C., Munoz-Ucros, J., Pérez-Alemán, C. J., Rahn, E., Robiglio, V., Somarriba, E., & Valencia, V. (2021). Transformation of coffee-growing landscapes across Latin America: a review. Agronomy for Sustainable Development, 41(5), 62. http://dx.doi.org/10.1007/s13593-021-00712-0 PMid:34484434.
      » http://dx.doi.org/10.1007/s13593-021-00712-0
    • Hordofa, D. (2021). Does Ethiopian competitive in export of coffee so far and what determines it? Evidence from revealed comparative advantage and autoregressive distributed lag model. Preprints, 2021, 2021040053.
    • Idrisu, M., Babalola, F. D., Mokwunye, I. U., Anagbogu, C. F., Aderolu, I. A., Ugioro, O., Asogwa, E. U., Ndagi, I., & Mokwunye, F. C. (2012). Adaptive measures for the factors affecting marketing of coffee (Coffea robusta Rio Nunes) in Kogi State, Nigeria. Agrosearch, 12(1), 37-49. http://dx.doi.org/10.4314/agrosh.v12i1.4
      » http://dx.doi.org/10.4314/agrosh.v12i1.4
    • Ikeno, J. (2007). The declining coffee economy and low population growth in Mwanga District, Tanzania. African Study Monographs. Supplementary Issue, 35, 3-39.
    • International Coffee Council – ICC. (2009). Climate change and coffee103rd session. London.
    • International Coffee Council – ICC. (2015). Sustainability of the coffee sector in Africa: 114th Session 2-6 March 2015. London. Retrieved in 2022, June 5, from http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
      » http://www.ico.org/documents/cy2014-15/icc-114-5e-overview-coffee-sector-africa.pdf
    • International Monetary Fund – IMF. United Nations Conference on Trade and Development – UNCTAD. (2011). Price volatility in food and agricultural markets: policy responses. Rome: FAO.
    • Jaramillo, J., Setamou, M., Muchugu, E., Chabi-Olaye, A., Jaramillo, A., Mukabana, J., Maina, J., Gathara, S., & Borgemeister, C. (2013). Climate change or urbanisation? Impacts on a traditional coffee production system in East Africa over the last 80 years. PLoS One, 8(1), e51815. http://dx.doi.org/10.1371/journal.pone.0051815 PMid:23341884.
      » http://dx.doi.org/10.1371/journal.pone.0051815
    • Karanja, A. M. (2002). Liberalisation and small-holder agricultural development: a case study of coffee farms in Central Kenya. Wageningen: Wageningen University and Research.
    • Kasso, M., & Bekele, A. (2018). Postharvest loss and quality deterioration of horticultural crops in Dire Dawa Region, Ethiopia. Journal of the Saudi Society of Agricultural Sciences, 17(1), 88-96. http://dx.doi.org/10.1016/j.jssas.2016.01.005
      » http://dx.doi.org/10.1016/j.jssas.2016.01.005
    • Kath, J., Byrareddy, V. M., Mushtaq, S., Craparo, A., & Porcel, M. (2021). Temperature and rainfall impacts on robusta coffee bean characteristics. Climate Risk Management, 32, 100281. http://dx.doi.org/10.1016/j.crm.2021.100281
      » http://dx.doi.org/10.1016/j.crm.2021.100281
    • Kimenyi, M., Adibe, J., Djiré, M., Jirgi, A. J., Kergna, A., Deressa, T. T., & Westbury, A. (2014). The impact of conflict and political instability on agricultural investments in Mali and Nigeria (Working Paper, Vol. 17). Africa: Africa Growth Initiative.
    • Knight, M., Loayza, N., & Villanueva, D. (1993). Testing the neoclassical theory of economic growth: a panel data approach. Staff Papers, 40(3), 512-541. http://dx.doi.org/10.2307/3867446
      » http://dx.doi.org/10.2307/3867446
    • Kollipara, P. (2014). Climate change could slash coffee production. American Association for the Advancement of Science. Retrieved in 2022, June 5, from https://www.sciencemag.org/news/2014/12/climate-change-could-slash-coffee-production
      » https://www.sciencemag.org/news/2014/12/climate-change-could-slash-coffee-production
    • Krishnan, S. (2017). Sustainable coffee production. In H. H. Shugart (Ed.), Oxford research encyclopedia of environmental science. Oxford: Oxford University Press. http://dx.doi.org/10.1093/acrefore/9780199389414.013.224
      » http://dx.doi.org/10.1093/acrefore/9780199389414.013.224
    • Labibah, S., Jamal, A., & Dawood, T. C. (2021). Indonesian export analysis: Autoregressive Distributed Lag (ARDL) model approach. Journal of Economics, Business, & Accountancy Ventura, 23(3), 320-328.
    • Lal, R. (1987). Managing the soils of sub-Saharan Africa. Science, 236(4805), 1069-1076. http://dx.doi.org/10.1126/science.236.4805.1069 PMid:17799662.
      » http://dx.doi.org/10.1126/science.236.4805.1069
    • Latif, N. W. A., Abdullah, Z., & Razdi, M. A. M. (2015). An autoregressive distributed lag (ARDL) analysis of the nexus between savings and investment in the three Asian economies. Journal of Developing Areas, 49(3), 323-334. http://dx.doi.org/10.1353/jda.2015.0154
      » http://dx.doi.org/10.1353/jda.2015.0154
    • Legesse, A. (2019). Climate change effect on coffee yield and quality: a review. International Journal of Horticulture, 5, 1-9.
    • Lewin, B., Giovannucci, D., & Varangis, P. (2004). Coffee markets new paradigms in global supply and demand. Washington: The International Bank for Reconstruction and Development Agriculture and Rural Development Department. http://dx.doi.org/10.2139/ssrn.996111
      » http://dx.doi.org/10.2139/ssrn.996111
    • Li, X. (2016). Price analysis under production differentiation in green coffee markets (No. 44) (Doctoral thesis). University of Kentucky, Kentucky. Retrieved in 2022, June 5, from https://uknowledge.uky.edu/agecon_etds/44
      » https://uknowledge.uky.edu/agecon_etds/44
    • Machuka, S. M. (2016). Determinants of productivity of small-scale holdings of arabica coffee and its supply response in Kenya: a case study of Kiambu County (Doctoral thesis). University of Tanzania, Tanzania.
    • Malhi, G. S., Kaur, M., & Kaushik, P. (2021). Impact of climate change on agriculture and its mitigation strategies: a review. Sustainability, 13(3), 1318. http://dx.doi.org/10.3390/su13031318
      » http://dx.doi.org/10.3390/su13031318
    • Markelova, H., Meinzen-Dick, R., Hellin, J., & Dohrn, S. (2009). Collective action for small-holder market access. Food Policy, 34(1), 1-7. http://dx.doi.org/10.1016/j.foodpol.2008.10.001
      » http://dx.doi.org/10.1016/j.foodpol.2008.10.001
    • Michael, A., Tashikalma, A. K., & Maurice, D. C. (2018). Agricultural inputs subsidy in Nigeria: an overview of the growth enhancement support scheme (GESS). Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 66(3), 781-789. http://dx.doi.org/10.11118/actaun201866030781
      » http://dx.doi.org/10.11118/actaun201866030781
    • Milder, B. (2008). Closing the gap: reaching the missing middle and rural poor through value chain finance. Enterprise Development & Microfinance, 19(4), 301-316. http://dx.doi.org/10.3362/1755-1986.2008.027
      » http://dx.doi.org/10.3362/1755-1986.2008.027
    • Miller, S. M., & Upadhyay, M. P. (2000). The effects of openness, trade orientation, and human capital on total factor productivity. Journal of Development Economics, 63(2), 399-423. http://dx.doi.org/10.1016/S0304-3878(00)00112-7
      » http://dx.doi.org/10.1016/S0304-3878(00)00112-7
    • Minh, H. T., Trang, D. T. N., & Chen, J. (2016). Input factors to sustainable development of coffee production in the Dak Lak province. Open Access Library Journal, 3(12), 1-10. http://dx.doi.org/10.4236/oalib.1103187
      » http://dx.doi.org/10.4236/oalib.1103187
    • Mkandya, E., Kilima, F. T. M., Lazaro, E. A., & Makindara, J. R. (2010). The impact of market reform programmes on coffee prices in Tanzania. Tanzania Journal of Agricultural Sciences, 10(1), 38-45.
    • Mohammed, A. B., Ayanlere, A. F., & Ekenta, C. M. (2013). Profitability of coffee production in Kabba/Bunu local government area of Kogi State Nigeria. African Journal of Agricultural Research, 8(23), 2897-2902.
    • Moyo, S. (2016). Family farming in sub-Saharan Africa: its contribution to agriculture, food security and rural development (Working Paper, No. 150). Rome: FAO.
    • Nchare, A. (2007). Analysis of factors affecting the technical efficiency of arabica coffee producers in Cameroon. Nairobi: African Economic Research Consortium.
    • Ngaruiya, J. K. (1995). Better coffee farming: fertiliser application. Kenya Coffee, 60(709), 2113-2115.
    • Nkoro, E., & Uko, A. K. (2016). Autoregressive Distributed Lag (ARDL) cointegration technique: application and interpretation. Journal of Statistical and Econometric Methods, 5(4), 63-91.
    • Nolte, K., & Ostermeier, M. (2017). Labour market effects of large-scale agricultural investment: conceptual considerations and estimated employment effects. World Development, 98, 430-446. http://dx.doi.org/10.1016/j.worlddev.2017.05.012
      » http://dx.doi.org/10.1016/j.worlddev.2017.05.012
    • Ofana, O. G., Efefiom, E. C., & Omini, E. E. (2016). Constraints to agricultural development in Nigeria. International Journal of Development and Economic Sustainability, 4(2), 19-33.
    • Ogundeji, B. A., Olalekan-Adeniran, M. A., Orimogunje, O. A., Awoyemi, S. O., Yekini, B. A., Adewoye, G. A., & Bankole, I. A. (2019). Climate hazards and the changing world of coffee pests and diseases in Sub-Saharan Africa. Journal of Experimental Agriculture International, 41(6), 1-12. http://dx.doi.org/10.9734/jeai/2019/v41i630429
      » http://dx.doi.org/10.9734/jeai/2019/v41i630429
    • Okafor, C., & Shaibu, I. (2016). Modelling economic growth function in Nigeria: an ARDL approach. Asian Journal of Economics and Empirical Research, 3(1), 84-93. http://dx.doi.org/10.20448/journal.501/2016.3.1/501.1.84.93
      » http://dx.doi.org/10.20448/journal.501/2016.3.1/501.1.84.93
    • Oko-Isu, A., Chukwu, A. U., Ofoegbu, G. N., Igberi, C. O., Ololo, K. O., Agbanike, T. F., Anochiwa, L., Uwajumogu, N., Enyoghasim, M. O., Okoro, U. N., & Iyaniwura, A. A. (2019). Coffee output reaction to climate change and commodity price volatility: the Nigeria experience. Sustainability, 11(13), 3503. http://dx.doi.org/10.3390/su11133503
      » http://dx.doi.org/10.3390/su11133503
    • Oluwatayo, I. B., Omowunmi, T., & Ojo, A. O. (2019). Land acquisition and use in Nigeria: implications for sustainable food and livelihood security. In L. Loures (Ed.), Land use: assessing the past, envisioning the future (pp. 91-110). London: IntechOpen.
    • Oniku, A. C., & Akintimehin, O. (2021). Coffee culture: will Nigerians drink coffee like others? Journal of Humanities and Applied Social Sciences, 4(3), 236-250. http://dx.doi.org/10.1108/JHASS-03-2021-0046
      » http://dx.doi.org/10.1108/JHASS-03-2021-0046
    • Onwumere, J. C., Ubokudom, I. A., Eneh, H. C., Okeke, R. C., & Nwachukwu, D. C. (2021). Trend analysis of cocoa industry productivity to selected macroeconomic variables in Nigeria. Journal of Community & Communication Research, 6(2), 130-139.
    • Onwusiribe, C. N., Nwaiwu, B. N., & Okpokiri, C. I. (2015). Assessment of north insurgency and performance of food dealers in Abia State, Nigeria. Scientific Papers: Management, Economic Engineering in Agriculture & Rural Development, 15(3), 1.
    • Orlowska, I. (2013). Forging a nation: the Ethiopian millennium celebration and the multiethnic state. Nations and Nationalism, 19(2), 296-316. http://dx.doi.org/10.1111/nana.12021
      » http://dx.doi.org/10.1111/nana.12021
    • Parizat, R., van Hilten, H. J., Tressler, E. G., Wheeler, M., Nsibirwa, R. W., Morahan, R., Modelo, M., Spolado, H., De Smet, J., & Pinto, D. (2015). Risk and finance in the coffee sector: a compendium of case studies related to improving risk management and access to finance in the coffee sector (No. 93923, pp. 1-132). Washington: World Bank.
    • Paul, M. B. (1994). The impact of coffee prices on inflation and the national debt in Uganda. Dakar: United Nations, Economic Commission for Africa, African Institute for Economic Development and Planning. Retrieved in 2022, June 5, from https://hdl.handle.net/10855/42547
      » https://hdl.handle.net/10855/42547
    • Pelupessy, W. (2007). The world behind the world coffee market. Etudes Rurales, (180), 187-212. http://dx.doi.org/10.4000/etudesrurales.8564
      » http://dx.doi.org/10.4000/etudesrurales.8564
    • Pereira, L. (2017). Climate change impacts on agriculture across Africa. In H. H. Shugart (Ed.), Oxford research encyclopedia of environmental science. Oxford: Oxford University Press.
    • Pesaran, M. H., & Shin, Y. (1995). An autoregressive distributed lag modelling approach to cointegration analysis (No. 9514). Cambridge: Faculty of Economics, University of Cambridge.
    • Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326. http://dx.doi.org/10.1002/jae.616
      » http://dx.doi.org/10.1002/jae.616
    • Poltronieri, P., & Rossi, F. (2016). Challenges in specialty coffee processing and quality assurance. Challenges, 7(2), 19. http://dx.doi.org/10.3390/challe7020019
      » http://dx.doi.org/10.3390/challe7020019
    • Pons, D., Muñoz, Á. G., Meléndez, L. M., Chocooj, M., Gómez, R., Chourio, X., & Romero, C. G. (2021). A coffee yield next-generation forecast system for rain-fed plantations: the case of the Samalá watershed in Guatemala. Weather and Forecasting, 36(6), 2021-2038. http://dx.doi.org/10.1175/WAF-D-20-0133.1
      » http://dx.doi.org/10.1175/WAF-D-20-0133.1
    • PricewaterhouseCoopers – PwC (2017). Transforming Nigeria’s agricultural value chain: a case study of the cocoa and dairy industries. London. Retrieved in 2022, June 5, from https://www.pwc.com/ng/en/assets/pdf/transforming-nigeria-s-agric-value-chain.pdf
      » https://www.pwc.com/ng/en/assets/pdf/transforming-nigeria-s-agric-value-chain.pdf
    • Rehm, C. D., Ratliff, J. C., Riedt, C. S., & Drewnowski, A. (2020). Coffee consumption among adults in the United States by demographic variables and purchase location: analyses of NHANES 2011-2016 data. Nutrients, 12(8), 2463. http://dx.doi.org/10.3390/nu12082463 PMid:32824298.
      » http://dx.doi.org/10.3390/nu12082463
    • Robinson, J. L., Hunter, J. M., Reyes-Izquierdo, T., Argumedo, R., Brizuela-Bastien, J., Keller, R., & Pietrzkowski, Z. J. (2020). Cognitive short-and long-term effects of coffee cherry extract in older adults with mild cognitive decline. Neuropsychology, Development, and Cognition. Section B, Aging, Neuropsychology and Cognition, 27(6), 918-934. http://dx.doi.org/10.1080/13825585.2019.1702622 PMid:31829793.
      » http://dx.doi.org/10.1080/13825585.2019.1702622
    • Rumanzi, P. I., Turyareeba, D., Kaberuka, W., Mbabazize, R. N., & Ainomugisha, P. (2021). Uganda’s growth determinants: a test of the relevance of the neoclassical growth theory. Modern Economy, 12(1), 107-139. http://dx.doi.org/10.4236/me.2021.121006
      » http://dx.doi.org/10.4236/me.2021.121006
    • Sachs, J. D., Cordes, K. Y., Rising, J., Toledano, P., & Maennling, N. (2019). Ensuring economic viability and sustainability of coffee production. New York: Columbia Center on Sustainable Investment.
    • Sakyi, D. (2011). Trade openness, foreign aid and economic growth in post-liberalisation Ghana: an application of ARDL bounds test. Journal of Economics and International Finance, 3(3), 146-156.
    • Shrestha, M. B., & Bhatta, G. R. (2018). Selecting appropriate methodological framework for time series data analysis. The Journal of Finance and Data Science, 4(2), 71-89. http://dx.doi.org/10.1016/j.jfds.2017.11.001
      » http://dx.doi.org/10.1016/j.jfds.2017.11.001
    • Singh, V., & Verma, D. (2017). Processing technology and potential health benefits of coffee. In D. K. Verma & M. R. Goyal (Eds.),Engineering interventions in foods and plants (pp. 89-117). New York: Apple Academic Press. http://dx.doi.org/10.1201/9781315194677-4
      » http://dx.doi.org/10.1201/9781315194677-4
    • Soule, B. G. (2013). Analytical review of national investment strategies and agricultural policies for the promotion of staple food value chains in West Africa: West African food systems: an overview of trends and indicators of demand, supply and trade. Rebuilding West Africa's food potential: policies and market incentives for small holder-inclusive food value chains. Rome: Food and Agricultural Organization of the United Nations, International Fund for Agricultural Development.
    • Sousa, A. G., Machado, L. M., Silva, E. F., & Costa, T. H. (2016). Personal characteristics of coffee consumers and non-consumers, reasons and preferences for foods eaten with coffee among adults from the Federal District, Brazil. Food Science and Technology, 36(3), 432-438. http://dx.doi.org/10.1590/1678-457X.10015
      » http://dx.doi.org/10.1590/1678-457X.10015
    • Ssenkaaba, J. (2019). Price determination in coffee market: the impact of supply and demand shifts (Master's thesis). School of Business and Economics, The Artic University of Norway, Norway. Retrieved in 2022, June 5, from https://munin.uit.no/bitstream/handle/10037/17572/thesis.pdf?sequence=2&isAllowed=y
      » https://munin.uit.no/bitstream/handle/10037/17572/thesis.pdf?sequence=2&isAllowed=y
    • Swaray, R. (2007). How did the demise of international commodity agreements affect volatility of primary commodity prices? Applied Economics, 39(17), 2253-2260. http://dx.doi.org/10.1080/00036840600707043
      » http://dx.doi.org/10.1080/00036840600707043
    • Talbot, J. M. (1997). Where does your coffee dollar go?: the division of income and surplus along the coffee commodity chain. Studies in Comparative International Development, 32(1), 56-91. http://dx.doi.org/10.1007/BF02696306
      » http://dx.doi.org/10.1007/BF02696306
    • Tinoco-Zermeno, M. A., Venegas-Martínez, F., & Torres-Preciado, V. H. (2014). Growth, bank credit, and inflation in Mexico: evidence from an ARDL-bounds testing approach. Latin American Economic Review, 23(1), 1-22. http://dx.doi.org/10.1007/s40503-014-0008-0
      » http://dx.doi.org/10.1007/s40503-014-0008-0
    • Tollens, E. (2002). Market information systems in liberalized african export commodity markets: the case of cocoa and coffee in Cote D'Ivoire, Nigeria and Cameroon (No. 1067-2016-86810). Leuven: Katholieke Universiteit Leuven.
    • Tosh, J. (1980). The cash-crop revolution in tropical Africa: an agricultural reappraisal. African Affairs, 79(314), 79-94. http://dx.doi.org/10.1093/oxfordjournals.afraf.a097201
      » http://dx.doi.org/10.1093/oxfordjournals.afraf.a097201
    • Udoh, E., Afangideh, U., & Udeaja, E. A. (2015). Fiscal decentralisation, economic growth and human resource development in Nigeria: Autoregressive Distributed Lag (ARDL) approach. CBN Journal of Applied Statistics, 6(1), 69-93.
    • Valkila, J. (2009). Fair Trade organic coffee production in Nicaragua: sustainable development or a poverty trap? Ecological Economics, 68(12), 3018-3025. http://dx.doi.org/10.1016/j.ecolecon.2009.07.002
      » http://dx.doi.org/10.1016/j.ecolecon.2009.07.002
    • van Asten, P. J., Wairegi, L. W. I., Mukasa, D., & Uringi, N. O. (2011). Agronomic and economic benefits of coffee-banana intercropping in Uganda’s small-holder farming systems. Agricultural Systems, 104(4), 326-334. http://dx.doi.org/10.1016/j.agsy.2010.12.004
      » http://dx.doi.org/10.1016/j.agsy.2010.12.004
    • Verter, N., Bamwesigye, D., & Darkwah, S. A. (2015). Analysis of coffee production and exports in Uganda. In International Conference on Applied Business Research (Vol. 1, pp. 1083-1090).
    • Volsi, B., Telles, T. S., Caldarelli, C. E., & Camara, M. R. G. D. (2019). The dynamics of coffee production in Brazil. PLoS One, 14(7), e0219742. http://dx.doi.org/10.1371/journal.pone.0219742 PMid:31335891.
      » http://dx.doi.org/10.1371/journal.pone.0219742
    • Wasihun, G. F. (2019). Trend analysis of coffee (Coffea arabica L.) productivity, area of production and numbers of holders in Ethiopia. Journal of Natural Sciences Research, 9(15), 1-6.
    • Yovo, K. (2021). The response of coffee and cocoa supply to the price volatility: the case of Togo. American Journal of Economics, 11(2), 49-56.
    • Yusuf, A., & Mohd, S. (2021). The impact of government debt on economic growth in Nigeria. Cogent Economics & Finance, 9(1), 1946249. http://dx.doi.org/10.1080/23322039.2021.1946249
      » http://dx.doi.org/10.1080/23322039.2021.1946249

    Publication Dates

    • Publication in this collection
      07 Oct 2022
    • Date of issue
      2022

    History

    • Received
      05 June 2022
    • Accepted
      20 June 2022
    Universidade Federal de São Carlos Departamento de Engenharia de Produção , Caixa Postal 676 , 13.565-905 São Carlos SP Brazil, Tel.: +55 16 3351 8471 - São Carlos - SP - Brazil
    E-mail: gp@dep.ufscar.br