DOI: https://dx.doi.org/10.4314/gjass.v21i2.

GLOBAL JOURNAL OF AGRICULTURAL SCIENCES VOL. 21, 2022: 135-140

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ECONOMIC ANALYSIS OF CASSAVA PROCESSING IN EGBEDA

LOCAL GOVERNMENT AREA, OYO STATE, NIGERIA
UGEGE B. H., TUNDE-FRANCIS A. A., ODEYALE O. C AND IBODE, R. T
(Received 4 October 2022; Revision Accepted 1 November 2022)

ABSTRACT
Cassava is one of the most important crops that can be cultivated all year round yet there is inability to meet the
quantity demanded by industries and other end user of the product. This study was carried out to analyse
cassava value chain in Egbeda local government area of Oyo state, Nigeria. Primary data needed for the study
were collected through the administration of questionnaires. A total of 85 questionnaires were administered.
Descriptive (Table and Frequency) and budgetary analysis was used. Well-constructed questionnaires were
administered to major actors in the chain (farmers/producers, marketers and processors.). The result revealed
that there are three major cassava processed products in the study area; garri, cassava dough(fufu) and
cassava chip (lafun).The result also revealed that females are more involved in the marketing(71.14% ) and
processing(85.71% ) of cassava. Also most of the respondents were betweeen the age range of 31-50. The
study also revealed that to every one tonne of fresh cassava 275000(garri), 34500 (wet fufu) and 45000(cassva
chip) are produced respectively. While the average gross margin estimated for the producer/farmers was
N706111. Also it was discovered that poor marketing information is a major challenge faced by the processors.
It is therefore recommended that cassava processors should organize to form an association and a cooperative
society to strengthen the marketing network.

KEYWORD: Economic, Analysis, Cassava, processors,

INTRODUCTION Over 90% of cassava produced in the country is

consumed locally with less than 10% utilised for
Cassava (Manihot esculenta Crantz) is an essential industrial purposes. Cassava roots constitute an
food for over 600 million people in large parts of sub important source of employment and income. It can
– Saharan Africa, South America and Asia. It is a be transformed into a considerable number of
tropical perennial crop cultivated mainly for its edible commodities varying from conventional and
root. More than half of the world‟s cassava is innovative food products, to livestock feedstuffs,
produced in Africa. It is a major source of calories for ethanol and starch and its many derivatives.
over 40% of the population (Arthur et al., 2009). Cassava root can be processed locally into products
Cassava is one of the most important crops for like Garri, Chip, lafun, Tapioca, Starch, fufu, Chips
Nigerian farmers; it is the most widely cultivated crop etc, to sell in their local markets and communities
and largely cultivated by small-scaled farmers that Garri is a form of carbohydrate food gotten from
depend on seasonal rainfall (Ganeshkumar et al., processed cassava root, it is the most widely
2017). The crop is preferred by most resource- consumed and traded of all food products made from
constrained farmers because of its low input cassava roots. It is processed by peeling, washing,
requirements, tolerance to low rainfall and ease of grating and fermenting the mature cassava roots.
propagation by use of vegetative stem cuttings. It After a few days fermentation, say three to five days
provides food and income to over 30 million farmers depending on preference, the grated mash is
and large numbers of processors and traders. bagged, de-watered and grated again. The second
Ugege B. H., Federal College of Forestry, Ibadan, Oyo State, Nigeria
Tunde-Francis A. A., Federal College of Forestry, Ibadan, Oyo State, Nigeria
Odeyale O. C., Federal College of Forestry, Ibadan, Oyo State, Nigeria
Ibode, R. T., Federal College of Forestry, Ibadan, Oyo State, Nigeria
© 2022 Bachudo Science Co. Ltd. This work is licensed under Creative Common Attribute 4.0 International license
136 UGEGE B. H., TUNDE-FRANCIS A. A., ODEYALE O. C AND IBODE, R. T
grating will make the granule smaller and friable. bounded on the west by Irewole local government
Garri can be consumed by soaking in cold water or area in Osun state Nigeria. Its headquarters is
0
making pasta with it and eating with delicious soup. Egbeda town. It lies on geographical coordinates 7
1 “ 0 1
The market structure of garri is characterized by 22 0 North and 4 3 0” East. The local government
perfect competition in the sense that there are many area has a total area measuring 191square
buyers and sellers who are not in a position to kilometers and witnesses two major seasons which
influence the market. Another product gotten from are rainy and dry seasons. Farming is one of the
cassava root is sticky dough (fufu) .It is known by major economic activity in Egbeda local government
many names; fufu, Akpu (in Igbo), loi loi, Santana area.
and Mr White. The origin of fufu is from the Ibo land
where is popularly called Akpu. Sticky dough (fufu) is SAMPLING PROCEDURE AND SAMPLING SIZE
prepared by peeling roots, washing, cutting into Purposive sampling techniques was used to select
pieces and steeping in water to ferment for three to eighty-five respondents. A total of 85 questionnaires
four days. There are other cassava products, were administered to the respondents in the study
fermented chip (lafun). area. Thirty-six(36) of the respondents were
Cassava chain is an elaborate but essential food farmers/producers ,thirty-five(35) were processors
production system that require so many actors to and fourteen(14) were marketers.
maintain sustainability and food security. Despite the
role of cassava in Nigeria economy, the value DATA COLLECTION
addition mechanism is inadequately utilized. Data were collected through the administration of a
Processing is predominantly done on small scale, well- structured questionnaire and personal interview
resulting to inability to meet the quality and quantity on the socio-economic characteristics, cost and
demand of the industry and other users of the return on each activities of the actors in the study
product. area. The questionnaire were divided into three
The main objective of the study is to carry out the categories; the farmer/producers, the marketer and
economic analysis of cassava processing in the the processors.
study area with a view to providing strong economic
performance and significant improvement on the METHOD OF DATA ANALYSIS
income of the respondents. The data collected was analyzed using descriptive
and budgetary analysis. Descriptive statistics was
METHODOLGY used to assess demographic characteristics of the
respondents, while budgetary analysis (Gross
STUDY AREA margin) was used to determine income of the actors
The study was carried out in Egbeda, It is one of the in the chain.
Local Government Area in Oyo State, comprising of The Gross margin can be expressed as follows;
many district and villages of Ayede/Alugbo, Egbeda, GM= TR-TVC
Erunmu, Olodo/Kumapayi, Where,
Osegere,Owobaale/Kasumu, Adeyadi, Alagbo, TR= Total Revenue
Ayede, Buramo, Fatade, Fayo and others. It is TVC= Total variable cost
located to the East and North East of Ibadan city. It is
ECONOMIC ANALYSIS OF CASSAVA PROCESSING IN EGBEDA LOCAL GOVERNMENT AREA, OYO STATE, NIGERIA 137
Result and Discussion
Table 1: Socio-economic characteristics of the respondent
Variables Producers/ Processor Marketers
farmers
Gender Frequent % Mean Standard Frequency % Mean Standard Frequency % mean Standard
deviation deviation deviation
Male 36 100 2 14.29 8 22.86
Female 0 0 12 85.71 27 71.14
Total 36 100 14 100 35 100

Age
Below 20 1 2.78 1 7.17 0 0
21-30 0 0 3 21.43 15 11.43
31-40 13 36.11 6 42.86 11 31.43
41-50 12 33.33 3 21.43 15 42.86
Above 50 10 27.77 1 7.41 5 14.29
Total 36 100 42.40 7.18 14 100 35.5 6.76 35 100 40.7 4.14

Marital status
Single 5 12.89 3 21.43 4 11.43
Married 24 66.67 10 71.43 29 82.86
Engage 4 11.11 1 7.14 2 5.71
Divorced 3 8.33 0 0 0 0
Total 36 100 14 100 35 100

Education
attainment
No formal 2 5.5 2 14.29 7 20.0
Primary 11 30.36 3 21.43 7 20.0
Secondary 13 36.11 7 50.0 9 25.71
Tertitary 8 22.22 2 14.29 11 31.43
Adult 2 5.6 0 0 1 2.86
education
Total 36 100 14 100 1 100

Household
size
Less than 5 18 50 8 57.14 16 45.7
5-10 18 50 6 42.86 19 54.29
Total 36 100 5.0 6.75 14 100 4.64 1.14 35 100 5.2 7.2

Years of
experience
Less than 5 1 2.78 8 57.18 10 28.57
6-10 18 50 6 42.86 19 54.29
11-15 11 30.55 0 0 3 8.57
16 & above 6 16.67 0 0 3 8.57
Total 36 100 10.72 7.18 14 100 5.14 0.85 35 100 7.6 4.14

Other
sources of
income
Farming 14 38.89 0 0 7 20.0
Civil servant 5 13.89 3 21.43 1 2.86
Trader 3 8.33 5 35.71 13 37.14
Artisan 10 27.78 4 24.37 6 17.14
Others 4 11.11 2 14.21 8 22.86
Total 36 100 14 100 35 100

Source: Field Survey, 2022

Table 1 revealed that females are more involved in production due to the vigor and activeness. The
the marketing and processing of cassava 71.14% study further shows that 66.67% (farmers), 82.86%
and 85.71% respectively. It was also observed that (marketers) and 71.43% (processors) of the
69.44% of farmers, 74.39% of marketers and 63.99% respondents are married, this is an indication that
of processors were between the age range of 31 and cassava value chain serve as a means of livelihood
50 years, indicating that they were in their active and and they are expected to show greater commitment
productive age and are expected to contribute because of their financial obligation. This
immensely to the development of the industry. This corroborates with the works of Oladoja, Adedoyin &
findings agree with Chikezie, et.al. (2012) who Adeokun (2008) who agreed that marriage comes
reported that youths are majorly involved in cassava with responsibility and hence an important factor in
138 UGEGE B. H., TUNDE-FRANCIS A. A., ODEYALE O. C AND IBODE, R. T
livelihood of individuals. Also among the actors in the 50% of the farmers in the chain had 6-10years
chain, 36.11% (farmers) had secondary education, experience, 54.29% of the marketers had 6-10years
31.4% (marketers) had tertiary education while 50% experience in the business while 57.14% of the
(processors) had secondary education. This is an processor had less than 5 years‟ experience.
indication of some level of literacy in the chain. Also

Table 3: BUDGETARY ANALYSIS FOR PRODUCING PER HECTARE OF CASSAVA BY FARMERS.

This table discusses the costs and returns of cassava cultivation in the study area.

Items Amount(N)
Land rentage 10000 : 00
Land Preparation (clearing, ploughing, harrowing) 150000 : 00
Cost of cutting (50 bundles) 27000 : 00
Planting cost (labor) 50000 : 00
Cost of weeding(herbicide and labour 50000 : 00
Fertilizer cost(fertilizers and labor) 60000 : 00
Harvesting cost 50000 : 00
Total Cost Revenue 397000 :00
Yield in tonnes produced 20tonnes
Selling price/ tonne 57000
Cassava tuber 1140000
Cassava cuttings 15000
Total Revenue 1155000
Net Revenue 758000

Source: Field survey, 2022

Table 3 above is the income contribution analysis for area. This is in line with (Tim-Ashama, 2016) that
cassava producers in the study area. From the table, farm business is more profitable and lucrative with
the Gross Margin of the producers was estimated as efficiency of production transforming into more
N758,000 per hectare. Therefore cassava farming profitability.
can be regarded as a profitable venture in the study

Table 4: Constraints faced by the farmers/Producers

Variable True False

High cost of production 32(88.89%) 4(11.11%)
High cost of hired labour 8(22.22%) 28(77.78%)
Poor extension services 26(72.22%) 10(27.78%)
Poor market network 31(86.11%) 5(13.89%)
Poor access road 29(80.56%) 7(19.44%)
Poor market information 32(88.89%) 4(11.11%)
Inadequate capital 23(63.89%) 13(36.11%)
Low returns from business 7(19.44%) 29(80.56%)
Weak linkage between cassava 4(11.11%) 32(88.89%)
farmers and processors
Unavailability of Inputs 33(91.67%) 3(8.33%)
Source: Field survey, 2022

The table 4 reveals the challenges faced by cassava network; while weak linkage between cassava
producers in their course of production. The major farmers and processors, low returns from business
constraints faced by the producers, in order of and high cost of labour were considered as less
importance, were unavailability of inputs, high cost of constraints by the producers.
production, poor market information, poor market
ECONOMIC ANALYSIS OF CASSAVA PROCESSING IN EGBEDA LOCAL GOVERNMENT AREA, OYO STATE, NIGERIA 139
Table 5: Costs and Returns to Cassava Processing/tonne in the Study Area

Items Garri Fufu Cassava chip

Cost of Cassava 40000 40000 40000
Cost of labour 13000 8000 8000
Cost of Transportation 10000 10000 10000
Cost of fuel (Firewood) 1000 - -
cost of water 1000 1000 1000
Cost of Packaging Material 500 500 500
Variable cost 65500 59500 59000
Fixed cost
Depreciation 1000 1000 1000
Total cost 66500 60500 60000
Sales from product
Qty produced in kg 250 300 333
Selling price/kg 350 300 300
Sales from products 87500 90000 99900
Sales from peels 5000 5000 5000
Total revenue 92500 95000 104900
Gross margin 27500 34500 45000
Source: Field survey, 2022

Table 6 shows the income generated from cassava the highest gross margin .It should be noted that
processing. The study revealed that cassava cassava chips is further milled into lafun. Lafun is
processing is a profitable enterprise. This is in line similar to fufu the difference is that lafun is a dried
with the findings of Lawal et product that has a good shelf life and fufu is a wet
al. (2013) and Ehinmowo et al.(2015) who found that product that has a much lower fiber content. It is
cassava processing to garri, cassava chip and often considered that consumer preference for fufu
cassava dough(fufu)are profitable. It was also is low this may be due to its inherent undesirable
revealed that cassava chip contribute more characteristics short shelf life, and odour .Though its
45000/tonne among the processes, followed by garri production is concentrated more in the eastern part
34,500/tonne. Though the profitability of cassava of the country. Garri is mostly consumed possibly
chip is more but the demand and rate of turn of garri due to the fact that it is a pre-cooked convenience
is more than cassava chip. This contrasts the food and is commonly consumed by soaking in cold
findings of Okeowo(2015) who found that fufu had water

Table 7: Constraints faced by Processors

Variable True False
High cost of production 27(77.14%) 8(22.86%)
High cost of hired labour 21(60.0%) 14(40.0%)
Poor extension services 20(57.14%) (42.86%)
Poor market network 16(45.71%) 19(54.29%)
Poor access road 16(45.71%) 19(54.29%)
Poor market information 32(91.43%) 3(8.57%)
Inadequate capital 21(60.0%) 14(40.0%)
Low returns from business 20(57.14%) 15(42.86%)
Weak linkage between cassava 6(17.14%) 29(82.86%)
farmers and processors
Unavailability of Inputs 16(45.71%) 19(54.29%)

Table 7 reveals the challenges faced by cassava CONCLUSION AND RECOMMENDATIONS

processors in the study area. The major constraints This study analyzed the economic contribution of
faced by the processors, in order of importance, were cassava processors into the garri, cassava dough
poor market information, high cost of production, high (fufu) and cassava chips and it was revealed that
cost of hired labour, inadequate capital, poor cassava processing is a profitable enterprise. It was
extension service, low returns from business; while also revealed that cassava chip contributed more
weak linkage between cassava farmers and 45000/tonne follow by garri 34,500/tonne. Though
processors, poor market network and poor access the profitability of cassava chips and cassava dough
road were considered as less constraints by the (wet fufu). Also the study revealed that poor market
processors. information is a major constraint faced by cassava
processors.
140 UGEGE B. H., TUNDE-FRANCIS A. A., ODEYALE O. C AND IBODE, R. T
It is therefore recommended that cassava processors Australian Agricultural and Resource
should organize to form an association and a Economics Society Melbourne, February 9-
cooperative society to strengthen the marketing 11, 2011
network.
Nweke, F. I., 2003. New challenges in Cassava
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