Economic Analysis of Cassava Flour and Garri Production in Ibarapa Local Government Area, Oyo State, Nigeria

Abstract

Cassava, an edible root crop and a reliable and relatively inexpensive source of carbohydrate, is widely grown and processed into different foods such as cassava flour and garri. The study analyzed the costs and returns in cassava flour and garri production and also determined the factors influencing its production in the study area. A two- stage sampling technique was used to generate primary data used for this study. The first stage involved the purposive selection of Ibarapa North Local Government Area (LGA), because it has more cassava producers and processors than other LGAs. The second stage involved the random selection of 15 villages out of the 23 in the LGA. From the selected villages, 170 respondents were randomly selected while only 150 copies of the structured questionnaire administered were retrieved. Results from the primary data shows that 28.3% of garri producersproducers had no formal education and 46.7% were between the ages of 30 and 39years. The regression analysis shows that the quantity of garri sold (ß =5.4099), transportation cost (ß =-0.2994), peeling cost (ß = -0.4249), and grating cost (ß = 0.6878) were all  significant to the total revenue of cassava flour sold. Price, inadequate capital, transportation, land tenure and markets were factors influencing garri and cassava flour production. Analysis of the costs and returns revealed that processing cassava into garri gave a higher gross margin even though processing of cassava was profitable, indicating that there is a significant difference between flour and garri production. Inputs, market, good and infrastructural facilities should be provided so as to increase production capacity and hence food security.

Keywords: Cassava, Cassava flour, Garri, Gross margin, Nigeria