ECONOMICS OF CASSAVA PRODUCTION IN OBOKUN AND ORIADE LOCAL GOVERNMENT AREA OF OSUN STATE, NIGERIA

Abstract

This study examines Economics of Cassava Production in Obokun and Oriade Local Government Area of Osun State, Nigeria. Sample size of 180 cassava farmers were selected using multi-stage sampling method. Structured questionnaire were used for data collection. Data collected were analyzed using descriptive statistics gross margin analysis and stochastic profit frontier analysis. The total cost incurred by cassava farmers was N130,143 per ha, average net farm income was N84,904.2 with an average gross margin of N103,792. The coefficient of normalized cost of stem, normalized cost of labor, cost of fertilizer cost of herbicides and cost of transportation, all have significant effect on the profit of cassava farmers. The profit efficiency result showed that cassava production in the study area is profitable. However, its expansion is greatly hampered by inadequate capital; hence the farmer in the study area cannot meet up with the basic requirement to sustain cassava production The most serious constraints faced by cassava farmers were inadequate capital and poor access to credit. It is recommended that that government through credit agencies should make available loanable fund and credit available to cassava producers and farmers should be encouraged to invest on cassava production for its profitability and economic value