Economics of Cassava value -added products among cassava processing households in South East, Nigeria

Abstract

The processing of cassava into different food forms is vital to maximize the potential of the crop and increase its consumption. This study examined the economics of value-added cassava production in Southeast, Nigeria.
Specifically, the study estimated the level of profit and its determinants.
Data used for the study were obtained from 180 respondents using a multi-stage sampling procedure.
Descriptive statistics, farm budget analysis, ordinary least square and factor analysis were the major analytical tools employed for the study.
Results of the analysis showed that the processors were young with basic formal education and highly experienced in cassava processing.
The study further showed that the gross margin was ₦326814.53,₦353978.00 and ₦267791.69 for gari, fufu and abacha enterprises respectively while the BCR
was 2.17:1.00, 1.77:1.00 and 2.44:1.00 respectively for the enterprises implying that valueadded cassava production in the study area is profitable.
The coefficients for age were negative and significant at 1% for garri and fufu enterprises and 10% level for abacha.
Sex and household size were positively correlated with profit at different levels of significance for all the enterprises.
The result also showed that high cost of labour, input prices, processing and weather conditions were some of the constraints militating against value added cassava production in the area. The study therefore recommends that, accessible, affordable processing inputs and storage facilities should be provided to improve processors’ technical efficiencies.
More so, the emphasis for public investments should be on improving general knowledge, transport and market infrastructures.