ECONOMIC ANALYSIS OF CASSAVA PROCESSING IN YEWA SOUTH LOCAL GOVERNMENT AREA OF OGUN STATE, NIGERIA
Keywords:
Cassava, Value addition, Budgeting, Regression analysis, NigeriaAbstract
This study was carried out to investigate the determinants of cassava processing and economic benefits derived by the processors in Yewa South Local Government Area of Ogun State. The study was based on primary data obtained from 80 processors drawn through multi-stage sampling procedure. Data were analysed using descriptive statistics, Ordinary Least Squares (OLS), and Gross Margin Analysis. The results indicate that 80 percent of the processors were female with average age of 39 years. A high proportion was not educated (48.7%) and majority (76.3%) still used the traditional processing methods. Fufu, Gari and Lafun were the three main products from cassava processing in the study area. However, processors showed preference for Fufu. Insufficient funds constitute the major constraint to cassava processing (76%), followed by lack of infrastructural facilities such as electricity, storage facilities and good road network (66%) and cost of labour/fuel saving devices (57%). OLS estimates revealed that cost of cassava roots, age of processors, labour, processing technique and cost of factors such as firewood, transportation, frying pan, and knives were significant. The mean gross margin per processor per month was N39,830, mean total variable cost was N37,907.19 and average revenue was N77,736.88 with a rate of return on investment (ROI) of 2.05. This implies that for every N1 spent on processing cassava, the processor gets N2.05 in return, showing cassava processing as a profitable venture in the . For more profitable returns, the study recommended among others, the use of labour and fuel saving devices by the processors. Also, provision of good road network used by cassava farmers may likely reduce the cost of the cassava roots.