Analysis of Risk Management Strategies Among Cocoa Farmers in Ekiti State

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Cocoa farming faces various production and market risks. This study analyzed risk management strategies among cocoa farmers in Ekiti State. Data were collected from 180 cocoa farmers using structured questionnaires. Risk sources were ranked using mean score analysis, and factors influencing strategy adoption were analyzed using multinomial logit model. Results showed that price fluctuation, pest and disease, and climate variability were perceived as most important risks. Common risk management strategies included crop diversification (72%), off-farm income (58%), savings (45%), and informal insurance (28%). Factors influencing strategy choice included education, farm size, access to extension, and risk perception. Formal insurance adoption was low (8%) due to cost and unavailability. The study recommends developing appropriate crop insurance products for cocoa farmers.