An ECONOMIC ANALYSIS OF SELECTED CASSAVA PRODUCTS IN THE KULODI CASSAVA PROCESSING COMMUNITY AREA OF OYO STATE, NIGERIA
Abstract
Cassava is mostly produced for food especially in the form of gari, lafun and fufu with little or no use in the agribusiness sector as an industrial raw material. Therefore, this study examined primary data obtained from 120 processors obtained through a multi-stage sampling procedure. These data were analyzed using descriptive statistics, ordinary least squares (OLS), gross margin analysis and a Likert scale. The objectives of the study were: to describe the socio-economic characteristics and method of processing used by the respondents in the study area; to determine returns to cassava processing; and to evaluate the socio-economic factors influencing the profitability of selected cassava products processing in the area in question. The socio-economic factors identified include age, sex, marital status, household size, method of processing, distance to market, market uncertainty, inadequate infrastructure and high cost of input. The study shows that the majority of processors were still of their economically active age and have a functional cassava processing association which can enable them to experience the benefits of group dynamics from government and non-government associations. Moreover, the majority of both cassava products still use the traditional processing method, which is both time-consuming and labour-intensive. Furthermore, processing fufu and garri were profitable in the study area but fufu is more profitable than garri in terms of the return on investment, which amounted to 1.12 and 1.03, respectively. For profitable returns, the study recommended cassava processors adopt a modern method of processing and government and non-government associations should help in the acquisition of modern processing equipment. Furthermore, cassava processors should be trained in using cassava waste for generating biogas to reduce processing costs.
Keywords
cassava; regression analysis; value addition; Nigeria
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Federal University of Agriculture, Abeokuta Ogun State, Nigeria. Nigeria
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