Economics of maize value addition among processors in Imo State, Nigeria

Abstract

The study analyzed the economics of maize value addition among processors in Imo State, Nigeria. It specifically determine the  socioeconomic characteristics of the maize processors, forms of value addition to maize, profitability of maize value addition, factors affecting the profit earned by processors and constraints to maize processing in the study area. Multistage sampling technique was employed in the selection of 120 maize processors for the study. Structured questionnaire and interview schedule were administered to the respondents to elicit data for the study. Data were analyzed using the frequency count, mean, percentages, net return analysis, return on naira spent and multiple regression analyses. The result revealed that majority (74.17%) of the processors were female with mean age of 44.3 years, married (68.3%), had formal education (86.6%), experienced (11.3 years) with a mean household size of  7 persons. The forms of maize value added products produced in the area were pap (akamu), corn meal (agidi) and popcorn. Maize value addition is an economically profitable venture in the study area as every ₦100 invested yielded ₦41.00/kg, ₦47.00/kg and ₦37.00/kg of pap, corn meal and popcorn per week respectively. Processors age, household size, education, experience, cost of maize and access to
credit were significant variables that affects the profit earned by processors as revealed by the multiple regression result. Limited access to credit, cost of raw maize, high processing cost, high transportation cost, and poor infrastructure were factors constraining processors in maize value addition. Government should provide and implement capacity-building programmes on value addition to support, educate and enhance processors skills in the processing of maize into more innovative value added products, like corn flour, cornflakes, and animal feed that aligns with current market trends.