This study empirically analyzed the determinants of profitability among small scale cassava processors in Southwest, Nigeria. Three States were considered for the study which was Ogun, Oyo and Ondo. A multistage sampling technique was employed to randomly select 373 respondents. The data collected were analyzed using descriptive statistics and multiple regression models. The findings revealed that the cassava processing business was profitable in the study area given the value of gross margin (N45,485,680.00; N33,476,280.00 and N64,517,720.00) and net profit (N45,231,752.00; N33,254,740.00 and N64,177,111.00) for the three States (Ondo, Oyo and Ogun). The result of regression model indicated that education, year of experience, access to extension services, household size, cost of raw materials and types of cassava purchased were the factors that significantly determined profitability in the study area. The main challenges encountering by the processors were identified as inadequate capital, environmental hazard, cost of fuel, storage facilities and market problems.
This study carried out an assessment of gari marketing in South-Western Nigeria. It specifically examined the socio-economic characteristics of the gari marketers in the study area; determined profitability of gari marketing and examined the market structure and conduct for gari in the study area. A multi-stage sampling technique was used to select 150 gari marketers in the study area and structured questionnaire administered on them. Descriptive statistics, gross margin, gini-coefficient and production function analyses techniques were used to analyse the data collected. The study showed that 92% of the respondents belong to the active segment of the population while the remaining 8% were aged. Analysis also revealed that gari market was dominated by retailers which accounted for 40.67% of the sellers though there were other categories of sellers such as processor/sellers (15.33%), wholesalers (12.67%) and wholesaler/retailers which accounted for 31.33% of the respondents. The profitability analysis showed that an average marketer incurred an average total variable cost of N6,730.98 per week but earned an average revenue of N10,397.53 per week which indicate that an average marketer earned N3,665.55 as gross margin. A Ginicoefficient of 0.4426 obtained in this study indicates a high level of concentration in the gari market. The result of the production function postulated for gari marketers in the study area reveals that the postulated regressors explained 74.2% in the variation of the regressand.
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