Profitability of Soymilk Processing: Implications for Upscaling among Small Scale Enterprises

Abstract

The profitability of soymilk processing with implications for scaling up among small-scale enterprises was investigated based on data which emanated from the Institute of Agricultural Research and Training (IAR&T), Moor Plantation, Apata Ibadan, Southwest Nigeria. Soymilk, a plant-based product, has gained popularity as a nutritious and sustainable substitute for dairy milk, prompting interest in its production in a commercialized way. In order to establish profitability and upscaling, an economic analysis of soymilk processed at the Institute was carried out on five (5) treatments using two (2) different methods. The partial budgetary and gross margin analysis were used to evaluate the profitability of the soymilk processed. The research outcome showed that treatment Mch2-3.0Syb-3cps was the best with the least cost. Treatment Mch2-3.0Syb-3cps had a positive net benefit of ₦4,090, an incremental net benefit of ₦435, an incremental cost of ₦915 and a marginal rate of returns of 47.54. This implies that compared to other treatments, the Mch2-3.0Syb-3cps method of soymilk processing would give an additional 45.54 litres of soymilk for every ₦1 spent in processing soymilk, which is the highest compared to other treatments. The findings suggest that soymilk processing holds promise as a profitable business if this treatment is adopted and upscaled.