ECONOMIC ANALYSIS OF YAM FLOUR PROCESSING IN SAKI, OYO STATE, NIGERIA

Abstract

The study examined the economics of yam flour processing in Saki, Oyo State, Nigeria. Primary data were obtained using questionnaire. A multistage sampling procedure was used in selecting one hundred and twenty (120) yam processors. Data were analysed using descriptive statistics, budgetary analysis and multiple regressions. Results revealed that 86.5% of yam flour processors were female, 71.2% were married, and 41.4% had primary education. In addition, mean age, household size and production experience of the processors of yam flour were 40 years, 6 persons and 15 years respectively. The gross margin and net farm income were N146,770.03 and N141,536.79 per processing cycle, while the return on investment was 3.25 for every N1 invested which implies that yam flour processing is profitable. Multiple regression revealed that the coefficient of labour cost, transportation cost, cost of storage and packaging and distance to market were negatively significant at 5%, 1%, 1%, and 1% probability level. Also, year of processing experience and membership of association were positively significant at 1% and 5% probability level respectively. The main constraints facing processors of yam flour in the study area were inadequate storage facilities, lack of infrastructural facilities and problem associated with climate change. It is therefore recommended that policies that would enhance large processing capacity so that at the long-run, output and profit can be maximized.