VALUE CHAIN ANALYSIS OF MAIZE IN ONDO STATE, NIGERIA

Abstract

This study focused on value chain analysis of maize in Ondo State, Nigeria. A Multi-stage sampling procedure was employed to select a sample size comprising of 180 respondents for the study. The Data for the study were drawn from maize value chain actors such as input suppliers, producers (farmers), marketers, processors and transporters. Primary data were collected with the aid of a well structured questionnaire. Value chain mapping, Descriptive statistics, Budgetary Analysis, Marketing Margin and Gini-Coefficient were used to analyze the data collected. The result of the value-chain mapping identified six major actors involved in the value chain of maize in the study area. The actors include the input suppliers, producers, marketers, processors and transporters. The results of this study revealed that majority (35%) of the respondents were within the age range of 50-69 years. Majorities (75%) of the processors were female, 50% of the respondents were married, and 35% of the respondents had tertiary education. About 60% of the respondents had a household size of 1-5 persons per household, 80% of the processors had an experience of 1-10 years. The result of the profitability showed that maize input supply and maize marketing has the highest gross ratio of 0.83 with the net profit of N163,466.66 and N10,168.54 respectively, showing that the business is a profitable venture in the study area. The result of the Gini-coefficient revealed that processors had the highest level of income inequality among the value chain actors in the study area (0.648), followed by the producers with a relatively high level of income inequality (0.636) as well as transporters with a high level of income inequality (0.464). value added by the input suppliers, producers, marketers, processors and transporters was worth N193,133.33, N291,038.50, N45,827.66, N26,781.44 and N366,616.00 respectively. In order to improve on the maize value chain in the study area, it was recommended that training should be organized for farmers, marketers, and processors on new and improved technology to boost production, marketing strategy to boost sales and modern processing techniques respectively.