ECONOMIC ANALYSIS OF CASSAVA PROCESSING UNDER VALUE CHAIN DEVELOPMENT PROGRAMME (VCDP) IN WUSHISHI LOCAL GOVERNMENT AREA OF NIGER STATE, NIGERIA

Abstract

This study was carried out to analyse the economics of cassava processing under value chain development program in Wushishi Local Government area of Niger State, Nigeria. The research described the socio-economic characteristics of the cassava processors, identified methods used by the cassava processors, estimated the cost and returns to cassava processing as well as analysed the determinants of income of cassava processors. The study utilized multistage sampling technique in selecting 100 processors from the study area. Data were obtained through the use of structured questionnaire and interview schedule. The data were analysed using descriptive statistics, farm budgeting technique and regression model. The farm budgeting analysis revealed that cassava processing into garri was profitable with a net income of ₦103,485.33. Labour intensity, high cost of cassava tubers and time consumption were the major constraints faced by the farmers. The regression analysis showed that 67% of the variation of the output was explained by the variables included in the model. Age (p<0.05), processing experience (p<0.01), transportation cost (p<0.05), storage cost (p<0.01) and packaging cost (p<0.01) were significant factors that influenced the income of cassava farmers under VCDP in the study area.The study recommendsthat the VCDP/Government should introduce innovative equipment that will reduce the stress in processing and ensure timeliness in processing operations.