Analysis of the profit margin along the plantain value chain in Osun State, Nigeria

Abstract

Plantain is a crop of economic value and can serve as a source of foreign exchange if given proper attention. There is, thus, the need to explore this potential, especially as regards the profit accrued by the various actors in the plantain value chain. This study sought to estimate the profit margin of players along the plantain value chain, examine the factors affecting the margins of actors and identify the constraints faced by them. Random sampling technique was used to select 125 producers, processors and marketers in Osun state. The primary data used were collected using well-structured interview schedule. Gross margin, net marketing margins; ordinary least square regression; and Likert-type scale were used for data analysis. The study revealed that the gross margin accrued to plantain producers was ₦639,148.31/ha per annum, while the net marketing margin/bunch for the plantain processors and marketers were ₦1836.61 and ₦204.96 respectively. Household size, quantities of labour, suckers, and pesticide used were factors affecting the gross margin of producers. Total input cost significantly affected the marketing margin of the processors, while it was transportation cost for the marketers. The major constraint faced by the plantain farmers was high cost of labour whilethe processors and marketers had the challenges of high cost of plantain and lack of a uniform unit of measurements respectively. The study concludes that the plantain value chain is profitable for all the actors, and recommends that the government should provide incentives that would encourage more people to go into plantain production, processing, and marketing.

Keywords: Plantain, Value chain, Actors, Profit margin, Constraints