EFFECT OF VALUE ADDITION ON THE NET RETURNS OF CASSAVA FARMERS IN EKITI STATE, NIGERIA

Abstract

The study examined the effect of value addition on the net returns of cassava farmers in Ekiti State, Nigeria. The study also determines factors influencing the decision to add value and the level of value added and to identify the factors influencing net returns in the process of value addition in the study area. Multistage sampling procedure was employed to select a sample size of 180 respondents. Primary data were collected through the administration of a structured questionnaire and were analyzed using descriptive statistics, budgetary technique, heckman two-stage selection model, multiple regression. The socio-economic characteristics of the respondents indicated that the mean age of the farmers was 48.5 years. Most (66.1%) of the respondents were females. Majority (82%) of the respondents were married. In addition, majority of the respondents had attained some level of formal education. The mean household size for respondents was 7 persons per house. Furthermore, about 41% of the respondents had cassava production experience of 11-20 years with a mean of 15.7 years. Estimating the net returns from cassava value addition using budgetary analysis, the result shows that the net return of the farmers’ from Gari, Lafun and Cooked Fufu was ₦18,328.48, ₦28,682.05 and ₦17,446.41 respectively indicating the value addition is profitable. Net return on investment (NROI) estimated for Gari, Lafun and Cooked Fufu was 1.37, 1.86 and 1.40 respectively. The result of the Heckman analyse indicated that various factors such as education, farming experience, quantity harvested and equipment availability influenced the decisions of the farmers to add value to their product and the level of value added. Post estimation of the selection equation result indicated that years of education, farming experience, quantity harvested and availability of processing equipment significantly influenced adding value to cassava positively. Meaning that they increased probability of the farmers adding value to their produce (cassava). Similarly, the same analytical results run for level of value added showed that years of education, farming experience and availability of equipment positively influenced the level of value added to cassava. Meaning that they increased the probability of the level of value added. The determinants of net return from cassava value addition were analyzed using the production function estimates. The semi-log functional form was chosen as lead equation. The significant variables that positively influenced net return were household size, processing experience and farm size whereas, cost of cassava stem negatively influenced the farmers’ net return in the study area. There different constraints militating against cassava value addition in the study area. Using the likert type of scale, they included high cost of labour, high cost of cassava tubers, poor processing facilities, inadequate funds, inadequate drying space, long distance from farm and high cost of transportation which were severe to the cassava farmers adding value in the study area while poor storage facilities, low pricing of the product and lack of processing implement were not severe. In order to derive the highest socioeconomic and financial benefits from cassava processing, this study makes the following recommendations based on the findings of the study, there is urgent need for the government and other relevant stakeholders to assist the cassava farmers by providing more land for agriculture, hybrid cassava stems (high yielding varieties) at no cost or subsidized rate and adequate processing technology in order to improve value addition to cassava.