ECONOMIC ANALYSIS OF GARI PRODUCTION IN EKITI STATE, NIGERIA

Abstract

This study examined the socio-economics of gari production in Ekiti State. Data for this study were obtained using structured questionnaire administered to one hundred randomly sampled commercial gari producing enterprises from four Local Governments. Data collected were analyzed using descriptive statistics, Budgetary analysis (gross margin) and econometric method involving regression analysis. The study result revealed that gari production was dominated by females as over 90% of producers were females. About 52% of the respondents have no formal education while majority (80%) of the producers have less than 10 years production experience. Gross margin analysis revealed that gari production was a profitable venture in the study area with an average gross margin per annum of N299, 102.49. The regression analysis revealed that about 90% of the variation in the income of the producers was explained by the variables considered (R2 = 92%) The quantity of cassava tubers, quantity of fuel for transportation (litres), machine hour for grating and man-hour of labour for peeling were significant variables in gari production. The resource-use efficiency results also revealed that the quantity of cassava tubers as well as machine hour for grating were under-utilized while quantity of fuel for transportation (litres) and man-hour of labour for peeling were over-utilized. Based on the findings in this study, it is recommended that to ease the problem of smoke and heat, chimney should be constructed alongside the structures where production takes place and the structures should allow for cross ventilation. There should be adequate extension training for the producers on the effective and efficient management of their resources so as to avoid wastages. To also ease the problem of inadequate capital, producers should form cooperative societies to aid easy access to credit facilities for members