Economic analysis of locust bean processing and marketing in Iwo local government, Osun state.

Abstract

This study was designed to estimate the economic analysis of locust bean processing and marketing in Iwo Local Government Area of Osun State, Nigeria. Primary data was used and purposive sampling technique was adopted to select the respondents used for the study. A total number of 60 respondents were interviewed. The data collected were analyzed using inferential statistical tool such as regression analysis. Budgetary analysis technique was also used to analyze the profitability of locust bean processing and marketing in the study area. Majority (78.3%) of the processors and marketers were making profit; 95.0% operate above break even point while 3.3% operate at break even point this indicates that they neither gain nor loss. The regression analysis result shows that quantity processed and years of experience in processing were significant at 1% and 10% respectively, while stall rent was significant at 5%. F-test also explained that independent variables are jointly significant at 1% probability level with an adjusted R2 of 79.8%. It was therefore concluded that locust bean enterprise is profitable and attention should be focused on boosting quantity of locust bean seeds available for processing and the revenue from its’ sales through cultivation and planting of more locust bean trees.

Keywords: Locust bean, processing, marketing, Iwo, Budgetary techniques, Regression analysis.