Risk Analysis in Innovation System: A Case Study of Production of Vitamin A Cassava Variety among Farmers in Oyo State, Nigeria

Abstract

Every innovation is targeted towards adoption - a process which involves several levels of risks. Biofortified vitamin A cassava variety is an innovation targeted not only to solve the yield of farmers but to increase the nutritional intake of Nigerian household. The research specifically seeks to investigate the risks involved in the adoption of vitamin A cassava variety, the risk attitude of cassava farmers, and the factors that affect farmers’ risk attitude to the production of vitamin A cassava. A three-stage random sampling procedure was used to select 240 farmers used for the study. Descriptive statistics, Likert scale, safety first utility approach and ordinary least square regression model were used for the analyses. The study revealed that the risks that are involved in the adoption of the cassava variety include animal invasion, price fluctuation, and poor storage facilities. The majority of the farmers were risk-neutral while only 16% were risk-takers. The study further revealed that the significant determinants of risk attitude among farmers were age, income from other activities and estimated annual income. It is therefore recommended that efforts should be geared toward making adequate vitamin A bio-fortified cassava varieties available to young farmers, grazing reserved should be provided to reduce the risks and efforts should be intensified to reduce price volatility for improved Vitamin A cassava