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ABSTRACT
The study examined the economic analysis of Cassava production in Akinyele Local Government Area of Oyo State.
Multistage random sampling technique was used to select a sample size of 180 respondents for the study. Data
collected were analyzed with descriptive statistics such as frequency, percentages, and chats while inferential
statistics used were budgetary techniques and regression analysis. The results showed that majority of the respondents
(83.9%) were males, 75.6% of the farmers were married and 83.3% of the respondents were having family size of 4-
9. Majority of the respondents (88.3%) had formal education, 80.5% of the respondents had farming experience of
more than16 years. Costs and returns for cassava production were analyzed with budgetary techniques and the result
revealed that for a hectare of cassava there was gross margin of ₦72,318.75 Kobo and the net profit of
₦64,575.00Kobo with a cost benefit ratio of ₦1.85Kobo implying that for every ₦1.00 invested in cassava
production, there was corresponding profit of 85Kobo. Nevertheless, the result further showed there was no efficient
allocation of variable inputs (resource) due to negative coefficients of these explanatory variables but there was
significant relationship to the net profit of the cassava farmers in the study area. Therefore, there is need for cassava
farmers to improve on their resource allocation to make their production robust and to boost their productivity. The
study further recommended that the cassava farmers should be trained on latest innovative practices in cassava
production and proper advisory services must be given to them by the subject matter specialists on resource allocation
for optimal profitability in their production in Akinyele Local Government Area of Oyo State, Nigeria.
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Introduction
Cassava (Manihot esculenta are the largest producers of cassava
Crantz) is a starchy root crop that in the country (IITA, 2004). It had
belongs to the family been suggested that before modern
euphorbiaceae and grown widely research on cassava started in
in West Africa. Nigeria is currently Nigeria in 1954 at the FDAR,
the largest producer of cassava in Ibadan, there were numerous local
the world with an annual output of ecotypes of traditional clones.
54 million tons of tuberous roots These varied in their tuber yields
(FAO, 2014). The crop has become and general tolerance of prevailing
a basic raw material for many pests and diseases. ''Oloronto"
small-scale businesses such as (53101), a local cultivar from the
cassava flour mills, bakeries, fast Ibadan/Abeokuta area, was then
food firms, restaurants, gari recommended for Southwestern
processing firms and is currently Nigeria. It was later used in crosses
an income generating venture in 1967 which led to the release of
(Odii, 2012). Cassava production improved varieties such as 60444,
has been increasing for the past 20 60447 and 60506 for the whole
years in area cultivated and in yield country. Cassava is an important
per hectare (FAO, 2004). Cassava regional food source for about 200
is virtually grown in all parts of million people (nearly one-third of
Nigeria with rainfall greater than the population) of Sub- Saharan
100mm and accounts for over 70% Africa (Abdoulaye et al., 2014). In
of the total production of tuber Nigeria for instance, cassava root
crops in Africa. This achievement and leaves do not only serve as an
has been attributed to the essential source of calories but as a
improved, high yielding, pest and major source of income for rural
disease resistant cassava varieties households. Cassava provides food
produced through research and income to over 30 million
collaboration of International farmers and large numbers of
Institute of Tropical Agriculture processors and traders in Nigeria
(IITA), Ibadan, National Root (Abdoulaye et al., 2014).
Crop Research Institute (NRCRI),
Umudike and other research Technological improvement (such
institutes (Amadi, 2013). as improved cassava varieties) is
the most important factor in
The major area where the crop is increasing agricultural productivity
grown extends from the coast in and reduction of poverty in the
the South to the Middle belt. By long-term (Solomon 2010;
zone, the North central zone Solomon et al., 2011). The
produces about 7 million tons of acceptance of improved cassava
cassava a year. Benue and Kogi varieties in any locality at any
States in the North central Nigeria given time is as a result of the
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Methodology
The study area was Akinyele Local was created in 1976 with the
Government Area. Akinyele LGA Administrative Headquarters
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Olukosi and Erhabor (1988) stated (TVC) makes up the gross margin
that farm budgetary analyses (GM). It evaluates the profitability
enable the estimation of the total of a given business. It is useful
costs as well as total revenue where the value of the fixed cost is
accrued to the enterprise within a negligible as it is the case with
specific production period. The cassava production which is
difference between revenue operated mostly at small scale level
(returns) and Total Variable Cost (Arene and Mbate, 2008).
Therefore, Gross Profit Margin is given as:
Gross profit margin (GPM) = Gross profit (GP) ÷ Total revenue (TR) × 100;
the profitability ratio used is benefit cost ratio (BCR) = Total revenue (TR) ÷
Total Cost (TC); Total fixed cost = Total cost (TC) – Total variable cost
(TVC); while the net profit (NP) = Gross margin (GM) – Total fixed cost
(TFC)
The regression model is given as:
Y = b0 + b1X1 + b2X2 + b3X3 + …….. +X7 + Σo (Koutsoyiannis, 2003).
Y = Profit, X1 = farm size, X2 = cost of land, X3 = labour, X7 = transportation
cost, Σo = Error term, b0 = Constant, b =Parameter.
Results and Discussion
Socio-economic characteristics of respondents in the study area
The result from table 1 above Area of Oyo State; Cassava
revealed that 83.9% of Cassava farmers are mostly between 36 and
farmers were males, this indicates 56 years of age. The result from
that Cassava production is not the table above showed that the
gender exclusive but is mostly majority of the respondents
carried out by the male folk, which (75.6%) were married. The finding
might be due to the fact that is agreement with a study by
cassava farming might be too Jibowo (2000) that a high
tedious for females especially land percentage of rural populations are
preparation. The age range of the married. This is because majority
farmers varied, 90.6% of the of the famers have a lot of
respondents fall between 30-59 responsibilities to carry out in their
years of age, implying that, in the families which will one way or the
study area, Cassava production is other affect the cost of production.
done by active and energetic The result also showed that
people in the middle ages of majority of the cassava farmers in
production. This conforms to the the study area (35.6%) had first
findings of Okunade et al., (2005) school leaving certificates while
that in Surelere Local Government (49.4%) had secondary school
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Fig
ure 2: Other livelihood activities
Majority of the respondents families. This result aligned with
(83.3%) had an average household the submission of Adebayo et al.
size within a range of 4-9 (Figure (2003) who reported that most
3). This result indicated that a large farmers have an average household
household size is germane to their size of 7 persons that are
involvement in farm labour and significant to farm labour.
increased productivity of the farm
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result in Table 3 further revealed suggesting that the higher the farm
that at 5% level of significance size the higher the profit of the
farm size value had positive and respondents.
significant influence on profit
Conclusion
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References
Abdoulaye, T., Abbas, A., Maziya- Journal of Development and
Dixon, B., Tarawali, G., Agricultural Economics. 6
Okechukwu, R., Rusike, J., (2): 67 – 75.
Alene, A., Manyong, V. and
Ayedun, B. (2014). Adebayo, K., Anyanwu, A.C. and
Awareness and Adoption of Osiyale, A.O. (2003).
Improved Cassava Varieties Perception of Environmental
and Processing Issues by Cassava
Technologies in Nigeria. Production Processors in
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Appendix
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