EFFECT OF VALUE ADDITION ON THE NET RETURNS OF CASSAVA FARMERS IN EKITI STATE, NIGERIA
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Date
2021
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Abstract
The study examined the effect of value addition on the net returns of cassava farmers in
Ekiti State, Nigeria. The study also determines factors influencing the decision to add value and
the level of value added and to identify the factors influencing net returns in the process of value
addition in the study area. Multistage sampling procedure was employed to select a sample size of
180 respondents. Primary data were collected through the administration of a structured
questionnaire and were analyzed using descriptive statistics, budgetary technique, heckman two-
stage selection model, multiple regression. The socio-economic characteristics of the respondents
indicated that the mean age of the farmers was 48.5 years. Most (66.1%) of the respondents were
females. Majority (82%) of the respondents were married. In addition, majority of the respondents
had attained some level of formal education. The mean household size for respondents was 7
persons per house. Furthermore, about 41% of the respondents had cassava production experience
of 11-20 years with a mean of 15.7 years. Estimating the net returns from cassava value addition
using budgetary analysis, the result shows that the net return of the farmers’ from Gari, Lafun and
Cooked Fufu was ₦18,328.48, ₦28,682.05 and ₦17,446.41 respectively indicating the value
addition is profitable. Net return on investment (NROI) estimated for Gari, Lafun and Cooked
Fufu was 1.37, 1.86 and 1.40 respectively. The result of the Heckman analyse indicated that
various factors such as education, farming experience, quantity harvested and equipment
availability influenced the decisions of the farmers to add value to their product and the level of
value added. Post estimation of the selection equation result indicated that years of education,
farming experience, quantity harvested and availability of processing equipment significantly
influenced adding value to cassava positively. Meaning that they increased probability of the
farmers adding value to their produce (cassava). Similarly, the same analytical results run for level
of value added showed that years of education, farming experience and availability of equipment positively influenced the level of value added to cassava. Meaning that they increased the
probability of the level of value added. The determinants of net return from cassava value addition
were analyzed using the production function estimates. The semi-log functional form was chosen
as lead equation. The significant variables that positively influenced net return were household
size, processing experience and farm size whereas, cost of cassava stem negatively influenced the
farmers’ net return in the study area. There different constraints militating against cassava value
addition in the study area. Using the likert type of scale, they included high cost of labour, high
cost of cassava tubers, poor processing facilities, inadequate funds, inadequate drying space, long
distance from farm and high cost of transportation which were severe to the cassava farmers adding
value in the study area while poor storage facilities, low pricing of the product and lack of
processing implement were not severe. In order to derive the highest socioeconomic and financial
benefits from cassava processing, this study makes the following recommendations based on the
findings of the study, there is urgent need for the government and other relevant stakeholders to
assist the cassava farmers by providing more land for agriculture, hybrid cassava stems (high
yielding varieties) at no cost or subsidized rate and adequate processing technology in order to
improve value addition to cassava.