Socio-economic determinants and profitability of cassava production in Nigeria.

Abstract


Oni Timothy Olukunle

Nigeria remained an importer of cassava products that can be derived from cassava in spite of her leading position in cassava production. Instability in production of the crop hindered its diversification to manufacturing industry. Therefore, the paper investigated socio-economic factors that determined productivity and profitability of the crop in Nigeria. Regression and budgetary techniques were used in analyzing primary data collected through a survey of farmers. Results revealed three significant determinants of net profit were land area planted to cassava, man-days of labour used and marketing cost incurred by the farmer. Effects of land area planted were positive, while those of man-days of labour and marketing cost were negative on net profit. Also, three significant determinants of cassava output were land area planted, marketing cost and age of the farmer. 10 per cent increase in area planted resulted into 4.8 percent increase in output. 10 percent increase in marketing cost brought about 5.5 percent decline in output, while 10 per cent increase in age of the farmer led to 3.8 per cent decline in output. Majority of the farmers sold their products on the farm due to high transportation cost and bad road. Policy efforts should include increasing use of yield-enhancing practices and improving rural infrastructure and marketing.

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