ASSESSEMENT OF PLANTAIN CHIPS ENTERPRISES IN COMMERCIAL CITIES OF ONDO STATE, NIGERIA

Abstract

The study assess the plantain chips enterprises in the commercial cities of Ondo State, Nigeria. The study identify the socioeconomic characteristics of plantain chips producers, determine the costs and returns associated with plantain chips production, examine the factors determining demand for plantain chips in the commercial cities Ondo State and determine the constraint of plantain chips production in the commercial cities Ondo State. A total of four hundred respondents (200 plantain chips producers and 200 consumers) were selected in the four major commercial towns in Ondo State. Data were collected through the use of structured questionaire. Data collected were analyzed using descriptive statistics, budgeting analysis, multiple regression model and demand function. The result from the descriptive revealed that 98.0% of the producers of plantain chips are between the age range of 16-50years, while 93% of the consumers falls within 10-50years and 7% were 51years and above. Also the analysis shown that 99.0% of the producers source for their capital themselves, while 1.0% of them borrowed capital from relatives. The cost and return analysis revealed that plantain chips production is profitable in the study area. Total Variable Cost (TVC) of plantain chips per producer was N201,785 /year while the Total Revenue (TR) was N470,841 and the Gross Margin (GM) Per Producer per year was N 268,399. The result of the multiple regression analysis shows the effects of explanatory variables on the dependent variable of the producers was 0.68, showing that the variation in the explanatory variables have combined effect of 68 percent on the dependent variable (Total Revenue). The analysis also revealed that household size, year of experience, educational qualification, transport cost, labour cost, cost of frying and cost of plantain have direct relationship with the total revenue of the producer, while age and marital status had an inverse relationship. The result of the demand function revealed that Price of related snack, consumers taste and price of plantain chip had positive coefficients with the quantity demand, showing a direct relationship with the dependent variable. The substitute for plantain chips and consumer’s income had negative coefficients meaning an inverse relationship with the quantity demand of plantain chips. As revealed from the study area the constraints of plantain chips producers as identified by the respondents were financial constraints, labour scarcity, high transportation cost, poor storage facilities and inadequate facilities. Based on the findings from this study, the follow recommendation was suggested, youths are adviced to take up o plantain chips enterprise as a means of livelihood, Small scale producers of plantain chips should organise themselves to form cooperative societies that will enable them to enjoy government credit assistance.