ECONOMICS OF SMALL-SCALE CASSAVA PROCESSING IN ADAVI LOCAL GOVERNMENT AREA OF KOGI STATE

Abstract

This study examined economics of small-scale cassava processing in Adavi Local Government Area of Kogi State. Specific objectives were to: describe the socioeconomic characteristics of cassava processors, assess the profitability of small-scale cassava processing and determine factors affecting the income of cassava processors. 120 respondents were selected from the list of cassava processors from Agricultural Development Project (ADP) and Adavi Local Government. Primary data used were collected using a structured questionnaire. Data were analysed with Descriptive statistics and Linear Regression. Results showed that respondents had a mean age of 37 years, 66% of the respondents were females, 45% of the respondents were married. 38.33% of the respondents acquired secondary education. The mean household size was 7 persons. The mean years of processing experience was 8 years. 61.67% of processors were members of cooperative societies. 72.50% of the respondents used household members as employees. Gross Margin of N 33,443.3, benefit-cost ratio of 2.72 and the operating cost ratio of 0.367 showed that cassava processing was viable and profitable. Independent variables included in the model were all statistically significant at 5% alpha level. Cassava processing in the study area is a profitable venture. Favourable pricing policies that will help to lessen the cost of processing should be put in place, this will in turn help to lessen processors’ selling prices and thus enable them withstand market competition thereby continue to be in business.