Profitability analysis of cassava processing in Uhunmwonde Local Government Area, Edo State, Nigeria

Abstract

This study examined the profitability of cassava processing in Uhunmwonde Local Government Area, Edo State, Nigeria. The specific objective was to estimate costs and returns of processing cassava into different products. Two-stage sampling technique was employed to select 107 processors from seven districts in the study area known for high cassava processing activities. Data were collected using structured questionnaire alongside scheduled interview. The data collected were analyzed using descriptive statistics, net return and benefit-cost ratio. The study revealed that 63 % of the respondents were females and 37%were within the age range of 41-50 years with an average of 44 years. Also, 66.36% were married and a mean household size of 5 persons. About 76.64% had formal education with an average processing experience of 18 years. The study further revealed that garri was the most significant product, followed by fufu, starch, abacha, flour and chips. Analysis of the costs and returns revealed that processing cassava to garri gave the highest gross margin, net return and benefit-cost ratio of ₦3,689.30, ₦3,306.79 and 1.81 respectively per week, though processing cassava to the six different products was profitable and viable. The study also shows that the major constraints faced by processors in the area include lack of government aid, lack of storage facilities and inadequate capital. It was therefore recommended that farmers should process their cassava tubers into any of the identified products before sales, especially garri.

Keywords: Cassava Chips, Flour Fufu, Starch, Abacha, Gross Margin, Benefic-cost ratio