COSTS AND RETURNS ANALYSIS OF CASSAVA PRODUCTION IN IJEBU-NORTH

LOCAL GOVERNMENT AREA, OGUN-STATE, NIGERIA

ABSTRACT
The study on Costs and Returns of Cassava production was carried out in Ijebu-North local
government area of Ogun state in Nigeria. in 2023. Given the importance of cassava in the lives
of the farmers and the general public in Ijebu-North LGA, there is need to examine the current
trend whether the farmers make profit or not by engaging in cassava production per hectare in the
area. This gap will help to encourage farmers to cultivate cassava as a means of improving family
living standards.The study described the socio-economic characteristics of the farmers and
determined the farm profit per hectare of the cassava farmers. A multi-stage sampling technique
was used to select one hundred and twenty (120) cassava farmers as respondents. The tools used
for data collection were questionnaire and interview schedule. The data were analyzed with
descriptive statistics and profitability analysis. The results showed that 75.8% of the cassava
farmers are male, 79.2% of the cassava farmers are married, 50.8% are within the age bracket of
51 years and above, 99.2% of the respondents are educated i.e. they have obtained at least a First
school leaving certificate, 50% have an household size of 6-10 persons per family, 65.8% of the
respondents have a farming experience of 11 years and above, 47.5% of the respondents have a
farm size of 4ha and above and 100% of the respondents have personal savings as their major
source of capital. The Profitability analysis revealed that the total variable cost (TVC) of producing
cassava per hectare was N185,500 and the total fixed cost (TFC) of producing cassava per hectare
was N72,015 giving a total cost (TC) per hectare of N257,515. The total revenue generated per
hectare was N368,000 with a gross margin of N182,500. The finding further revealed that a profit
of N110,485 with N1.43k made on every naira invested into the business. On cassava production
constraints, the farmers ranked Lack of Credit/loan facilities, Poor extension facilities and Lack of
improved cassava varieties as the three top major constraints. The study recommends that youths
should be encouraged to engage themselves in cassava production on a large-scale basis in the
study area.
KEYWORD: Cassava production, cost and returns, analysis, Ijebu-North, LGA.

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INTRODUCTION
Agriculture plays an essential role in sustaining and driving the economies of Nigeria and the
world generally [1]. It is significant to the growth of Nigeria’s economy especially, as it provides
food for the populace, raw materials for industries as well as a major source of revenue to
government both locally and internationally. The sector employs over 70% of Nigeria’s active
population and its contribution to the Gross Domestic Product (GDP) was 24.1% in 2020
(www.data.worldbank.org). [2].
Cassava (Manihot esculenta crantz) is a native crop of South America which was introduced into
the country during the period of slave trade by the Portuguese explorers in the sixteenth century.
The importance of the crop in the country got a boost in the nineteenth century when slave trade
was abolished and many slaves returned and introduced processing techniques into cassava[3].
Cassava is among the important staple and cash crops grown in Nigeria, particularly in the southern
part in terms of area cultivated and the number of farmers growing it [4]. Nigeria is the world
largest producer of cassava while Thailand is the largest exporter of cassava starch. In 2021, it was
estimated that cassava production was about 63,031,376 tonnes in Nigeria from the total land area
of 9,085,736 hectares with an average yield of 69,374kg/ha [5]. Though the crop is produced in
twenty-four of the thirty-six states in the country, both in terms of area covered and numbers of
farmers growing the crop, the major states of Nigeria which produces cassava are Anambra, Delta,
Edo, Benue, Cross-River, Imo, Ogun, Oyo and River states and to lesser extent Kwara and Ondo
states [6].
Cassava is rich in carbohydrate, calcium and vitamin B and C. However, nutrients composition
differs according to variety and age of the harvested crop and soil conditions, climate, and other
environmental factors during cultivation. Cassava is very versatile, and its derivative starch is
applicable in many types of products such as food (Garri, Fufu, Lafun, Pupuru etc.), confectionery,
sweeteners, glues, plywood, textile, paper, biodegradable products, monosodium glutamine and
drugs [7]. Cassava chips and pellets are used in animal feeds and production of alcohol [8].
The growth in cassava production has been primarily due to rapid growth in population, large
domestic demand, complemented by the availability of high-yielding improved varieties of
cassava, a relatively developed market and the existence of improved processing and technology
making possible numerous forms of value addition to the product [9]. The efforts of Agricultural
Development Programmes (ADPs), Ministries of Agriculture and Natural Resources (MANRs),
United State Agency for International Development (USAID) in collaboration with National Root

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Crop Research Institute (NRCRI) and International Institute of Tropical Agriculture (IITA) have
helped in cassava genetic improvement and many improved cultivars currently in use by farmers
in the country [10,11]
More than 80% of the country’s population are resident in the in rural area and are dependent on
Agriculture for their livelihood [2]. The sector holds a major role in Nigeria’s economic
development as majority of the active population are employed in the agricultural sector [12]. In
Nigeria, Cassava is grown in all ecological zones and is planted all year round depending on the
availability of moisture [13].
Profitability analysis in cassava production will give a direction to the farmers to evaluate
themselves whether they make favourable net returns by engaging in the sector after subtracting
the total cost (TC) of production from the total farm revenue (TFR). Farmers especially will tend
to invest in what is profitable and into what can give them better economic returns. Given this
scenario, do farmers in Ijebu-North who produce cassava make any economic gains or are they
still producing at subsistence level? Is the cost component involved in cassava production so
enormous that it does not make it attractive as a business? Is the market and profit margin per
hectare attractive? Investigating the above questions will guide the farmers on the profit margin
per hectare of cassava production in the LGA.
Accordingly, the study generally analyzed the Costs and Returns as well as identified the major
constraints in Cassava Production in Ijebu-North Local government area of Ogun state, Nigeria.

METHODOLOGY
The study was carried out in Ijebu-North Local Government area (LGA) of Ogun state which has
its headquarters in Ijebu Igbo. Ijebu-North local government area lies between latitudes 6° 59' 44"
and 6.99 55° North of the Equator and longitudes 3° 58' 15"E and 3.9706° east of the Greenwinch
Meridian. Ijebu-North LGA is bounded by Oluyole Local Government of Oyo State in the north,
in the east by Ijebu East Local Government, in the south by Ijebu Northeast, Odogbolu and Ijebu
Ode Local Government, and in the west by Ikenne Local Government [14]. It has an area of 1, 074
square kilometers and a population of 477, 100 [15]. The local government area is divided into
eleven political wards: These are Atikori, Oke-Agbo, Ojowo/Japara, Oke-Sopen, Ome, Oru-awa-
ilaporu, Osun and Ago-Iwoye urban I, Ago-Iwoye urban II, Ako-Onigbagbo Gelete, and
Mamu/Ehin-Etiri [14].

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In Ijebu-North, agriculture is the economic mainstay of the people of the Local Government area,
producing farm outputs such as oil-palm, cocoa, kolanut, maize, yam, cassava, cocoyam,
vegetables, and poultry.

Sampling Techniques
Multi-stage sampling was used to select respondents for the study. The first stage involved
purposive sampling of six wards from the eleven political wards in Ijebu North local Government
area. The six political wards selected are Osun, Omen, Atikori, Oke-sopen, Oke-agbo and
Japara/Ojowo. These political wards were chosen based on their engagement on large scale
production of cassava in the LGA.
The second stage involved purposive selection of twelve villages from the six political wards. The
villages include Ajebandele-nugba, Erigboro, Ita-egba, Orita-Agbede 1, Gbogiri, Dagbolu,
Lagada, Atikori, Italiwo, Egan moro, Oke-agbo, Tisaba. and Topon with the assistance of the staff
from the Local Government Area, ADP and Ministry of Agriculture in the state.
The third stage involved the purposive selection of 10% proportionality factor of the sample frame
of each village. A total of 120 farmers were randomly selected using random numbers.
Table 1: Selection of respondents in the study area
S/N Wards Villages Sample frame Sample size
1. Atikori Dagbolu 110 11
Oduja 80 8
2. Omen Ita-Egba 110 11
Orita Agbede 1 90 9
3. Osun Ajebandelenugba 120 12
Erigboro 70 7
4. Oke Agbo Egan moro 70 7
Tisaba 100 10
5. Japara/Ojowo Lagada 150 15
Gbogiri 100 10
6. Oke-sopen Italiwo 80 8
Topon 120 12
Total 6 wards 12 Villages 1200 farmers 120 respondents

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Source: Field data, 2023.
Source of Data
The major source of data collection for this study was primary data. This was collected using
structured questionnaire to capture the objective of the study. Data were collected on the socio-
economic characteristics of the cassava farmers such as age, gender, house-hold size, annual
income, marital status as well as the years of experience in cassava farming. Data on the cost of
cassava farming per hectare such as the cost of labour, cassava cuttings, fertilizer and herbicides
were collected. Also, information on the returns per hectare and the gross margin per hectare were
collected from each farmer.

Analytical Technique
Descriptive statistics (simple averages, percentages and tables) were used to discuss the socio-
economic characteristics of the farmers, while profitability analysis was used to determine the net
farm income of the farmers per hectare. The four (4) point Likert-scale degree was used to rate the
constraints identified by the farmers.
The Gross Margin (GM) analysis was expressed as:
GM = TR – TVC (1)
where;
GM = Gross margin
TR = Total revenue
TVC = Total variable cost
While Net Farm Income (NFI) was expressed as:
NFI = TFR-TFC (2)
Where:
NFI = Net Farm Income
TFR = Total Farm Revenue
TFC = Total Farm Cost
The four point Likert scale were rated as VSC = Very severe constraint, SC = Severe constraint.
MSC = Moderately Severe constraint and NC = No constraint.

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RESULTS AND DISCUSSION
Socio-Economic Characteristics of Cassava Farmers
The socio-economic characteristics of cassava farmers in the study area that were considered
include: gender, marital status, age of respondents, educational level, house-hold size, farming
experience, farm size and major source of capital. The result of the analysis is presented in table 2
below.

Table 2: Socio-economic Characteristics of Cassava Farmers in the Study area.

S/N VARIABLES FREQUENCY (120) PERCENTAGE MEAN
1 GENDER
Male 91 75.8
Female 29 24.2
Total 120 100
2 MARITAL STATUS
Married 95 79.2
Single 11 9.2
Widow 12 10
Widower 02 1.6
Divorced 00 00
Total 120 100
3 AGE 49 years
Less than 20 years 00 00
21-30 years 06 5
31-40 years 08 6.7
41-50 years 45 37.5
51 years and above 61 50.8
Total 120 100
4 EDUCATIONAL LEVEL
No Formal Education 01 0.8
First School Leaving Certificate 30 25
Senior Secondary Certificate 68 56.7
Higher Institution 21 17.5
Total 120 100
5 HOUSEHOLD SIZE 10 persons
Less than 5 Persons 04 3.3
6-10 Persons 60 50
11-15 Persons 53 44.5
16 Persons and above 03 2.5
Total 120 100
6 FARMING EXPERIENCE 11 years
Less than 5 years 03 2.5
6-10 years 38 31.7
11 years and above 79 65.8
Total 120 100
7 FARM SIZE IN HECTARE 3.4 ha
0.1-1ha 03 2.5

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 1.1-2ha 16 13.3
2.1-3ha 33 27.5
3.1-4ha 11 9.2
4ha and above 57 47.5
Total 120 100
8 MAJOR SOURCE OF
CAPITAL 120 100
Personal Savings 00 00
Loans from Banks 00 00
Family and Friends 00 00
Money Lenders 120 100
Total
Source: Field Survey, 2023

Gender
From the table, the variable of Gender shows that majority (75.8%) of the Cassava farmers in the
study area were male while (25.2%) were female. This implies that there were more male cassava
farmers than female cassava farmers in the study area. This finding agrees with that of Olanrewaju
et al (2022) [7] who reported that about 72.7% male and 27.3% female produced cassava in his
study area in Akoko District of Ondo State, Nigeria. The predominance of male in Cassava
production may be attributed to the tedious nature and hard work involved in the production
process.

Marital Status
The table revealed that 79.2 % of the cassava farmers in the study area were married while 9.2%
were single. The widowed represented 11.6%. This means that married farmers dominated in
cassava production in the study area and that cassava production would serve as a reliable source
of income to meet the need of the family. Also, being married could create potential for increased
farm labour supply which will contribute positively to cassava production. This result is in
accordance with Akomolafe et al (2023) [16] findings in Bwari Area council, Abuja, Nigeria. The
author found that majority of his respondents (75%) were married.

Age of respondents
On age distribution, the age bracket of 51 years and above had 50.8%, 41-50 years had 37.5%,
while 6.7 % and 5% were within the age brackets of 31-40 years and 21-30 years respectively.
This implies that most of the farmers in the study area were still active, agile, and energetic to

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carry out Agricultural activities. They will be able to adopt new innovations, new ideas, research
findings and new farming technologies that can increase productivity in cassava production.
This result buttresses the study of Olanrewaju et al (2022) [7] in Akoko District of Ondo State
that majority of the respondents (51.3%) are within the age bracket of 51 years.

Educational level
The educational level of the respondents as shown in table 1 indicates that majority of the
respondents (99.2%) have some form of formal education. The result reveals that 56.7% of the
farmers has SSCE, 25% have First School Leaving Certificate, about 17.5% have attended a higher
institution, while 0.8% had no formal education. With this finding, it shows that majority of the
farmers can read and write and may understand the use of improved technology. Apeh et al (2023)
[17] had similar result in Imo state, Nigeria where about 93% of the farmers were literate while
only 7% had no formal education. This means that farmers in this area can be able to understand
and apply new techniques involved in Cassava farming and value chain processes.

Household size
The result revealed that 50% of the cassava farmers in the study area had a household size of 6-10
members per family, 44.5% had household size of 11-15 members per family. However, 3.3% and
2.5% of the farmer claimed they had less than 5 members per family and 16 members and above
respectively in their family. It has been observed that large family size may imply more supply of
labour in cassava production as large households has a direct bearing on increased availability of
able-bodied labour for production activities. This finding agrees with Olugbenga et al (2023) [18]
study in Federal Capital Territory, Abuja where majority (58%) of the cassava producers had
between six and ten people per household. This is because house-hold size is the major determinant
of labour availability especially in small scale farm production given the relative high cost of hired
labour.

Farming experience
The study revealed that majority of the cassava farmers in the study area are experienced with
66.8% having a farming experience of 11 years and above, followed by 31.7% of the farmers with
6-10 years farming experience and then farmers (2.5%) with less than 5 years farming experience.
This means that the cassava farmers in the study area are highly experienced. This result is in line

8
with Ume et al (2022) [19] findings in Enugu state, Nigeria where majority of the farmers in his
study area had a farming experience of 11 years and above.

Farm size in hectare

On farm size, the result revealed that 2.5% of the farmers cultivated 0.1-1 ha, 9.2% cultivated 3.1-
4ha, 13.3% cultivated 1.1-2ha, 27.5% cultivated 2.1-3ha, while 47.5% cultivated 4ha and above.
This shows that majority of the farmers have large farm holdings. The finding is in line with Apeh
et al (2023) [17] who observed that in Imo state, Nigeria where majority of the farmers (41%)
cultivated land of 4 ha and above.

Major source of capital

The finding showed that 100% of the farmers have their major source of capital from personal
savings. This suggests the difficulty in accessing loan for cassava production in the study area.

COSTS AND RETURNS ANALYSIS OF CASSAVA PRODUCTION PER

HECTARE IN THE STUDY AREA
TABLE 3: costs, returns and the gross margin of cassava production in the study area per hectare.

VARIABLE QUANTITY/ UNIT PRICE TOTALVALUES

RATE (N) (N)
Variable costs
Cassava cuttings/Planting materials 25(Bundles) 2300 57500
Fertilizers (2bags) 100 (Kg) 19500 39000
Herbicide 4 (Litres) 3500 14000
Labour 30 (Man/day) 2000 60000
Transportation (Naira) 15000 15000
Total variable cost (TVC) 185,500
Fixed costs
Rented land 1 (Hectare) 19620 19620
Farm capital (Naira) 52385 52395
Total fixed cost (TFC) 72,015
Total cost (TC) 257,515
Revenue from sales (TR) (Returns) 18.4 (Tonnes) 20,000 368,000
Gross margin (GM) GM=TR-TVC 182,500
Profit/Net farm income (NFI) NFI=TR-TC 110,485
Benefit cost ratio (BCR) BCR=TR/TC 1.43
Source: Field survey data, 2023.

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Cost of cassava production per hectare
The results presented in table 3 reveals that the otal variable cost of cassava production per hectare
in the study area was N185,500 with cost of labour accounting for the highest percentage of the
variable cost (N60,000). The labour operations include clearing/packing, tilling, planting,
herbicide application, weeding, fertilizer application, harvesting and transportation. Also, the total
fixed cost (TFC) was N72,015 for cassava production per hectare in the study area with farm
capital constituting the highest proportion of the fixed cost (N52,395), The farm capitals include
cutlass, hoe, knapsack sprayer, wheelbarrow, digger, axe, and spade. These farm capitals are
sometimes rented and used within the cycle of production. The total cost (TC) of cassava
production per hectare in the study area was N257,515.

Revenue of cassava production per hectare

The results from table 3 show that the total revenue per hectare was N368, 000.

Gross margin of cassava production per hectare in the study area

The result from table 3 shows that the Gross margin (GM) value for cassava production per hectare
was N182,500. Further analysis revealed that cassava production gave a profit of N110,485 per
hectare with N1.43k made on every naira invested into the business. These findings indicate that
Cassava production is a profitable venture in the study area and so can improve the standard of
living of the rural populace especially the youths who may want to engage in the sector.
This study agrees with the findings of Jatto et al (2020) [20] Who observed that in Akinyele Local
Government Area cassava farmers had a gross margin of ₦72,318.75 and a net farm profit of
₦64,575.00 per hectare with a cost benefit ratio of ₦1.85 implying that for every ₦1.00 invested
in cassava production, there was corresponding profit of 85 kobo and hence cassava production is
a profitable venture that is capable of providing sufficient income for the farmer. The result of the
study also agrees with the findings of Sanusi et al (2020) [21] in Irepodun local Government Area,
Kwara state, Nigeria who found that the average gross margin per hectare for cassava production
in the study area was N24, 949.28 with a cost benefit ratio of 1.38, suggesting that for every N1
invested in the business of cassava production, there is a corresponding profit of N1.38.
Establishing the fact that despite the problem encountered in the study area, cassava production is
profitable and can serve as a panacea for economic improvement of households.

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Constraints of cassava production in the study area
TABLE 4: the constraints of cassava production in the study area.
CONSTRAINTS VSC SC MSC NC TOTAL SUM MEAN RANK
(4) (3) (2) (1)
Lack of credit/loan facilities 80 37 3 0 120 437 3.64 1st
Poor extension services 55 60 4 1 120 409 3.41 2nd
Lack of improved cassava varieties 48 68 3 1 120 403 3.36 3rd
Lack of farm capital 46 69 5 0 120 401 3.34 4th
Price fluctuation of Cassava products 7 97 15 1 120 350 2.92 5th
Pest and disease attack 3 101 16 0 120 347 2.89 6th
High cost of labour per man day 2 92 26 0 120 336 2.8 7th
High cost of cassava cuttings 2 88 29 1 120 331 2.76 8th
Land fragmentation 5 82 29 4 120 328 2.73 9th
Low demand for produce 2 23 95 0 120 267 2.23 10th
Weather/climatic condition 2 4 112 2 120 246 2.05 11th
Source: Field survey, 2023

NOTE: VSC= Very severe constraint. SC= Severe constraint.

MSC= Moderately Severe constraint. NC=No constraint.
• Mean score less than 2.5= Minor constraints and mean score greater than 2.5= Major
constraints.
Human endeavor is plagued with problems and agriculture especially cassava production is not an
exception. The result in table 4 revealed that lack of credit/loan facilities, poor extension facilities,
lack of improved cassava varieties, lack of farm capital, price fluctuation of cassava products, pest
and disease attack, high cost of labour per man day, high cost of cassava cuttings and land
fragmentation, (mean values being 3.64, 3.41, 3.36, 3.34, 2.92, 2.89, 2.8, 2.76 and 2.73
respectively) are the major constraints confronting cassava production in the study area while low
demand for produce and weather/climatic condition (mean value 2.23 and 2.05 respectively) are
the minor constraints faced by cassava farmers in the study area.
This study agrees with the findings of Olanrewaju et al (2022) [15] in Akoko district of Ondo state
which showed that the foremost and major constraint encountered in cassava production in Akoko
district is lack of credit facilities while low demand of cassava products and climate conditions

11
were no constraint. The result is also in line with the findings of Ume et al (2022) [19] in Enugu
state, Nigeria who reported that access to credit/ loan facilities is a major constraint. The poor
access to credit may be connected to the high interest rate and high collateral demanded by lending
agencies.
This result is in accordance with Olugbenga et al (2023) [18] finding in Federal Capital Territory,
Abuja, Nigeria where the two major constraints faced by the farmers are the Lack of credit facilities
and Inadequate extension services.

CONCLUSION
In view of the findings of this research, it is concluded that cassava production is a profitable
venture in the study area given that a gross margin of N182,500 and a net farm income of
N110,485 were generated per hectare, while a cost benefit ratio of 1.43k for every naira invested
is realized. Labour constituted the highest cost of production meaning that the different labour
operations for Cassava production in the area are high.

RECOMMENDATIONS
Based on the findings of this study, the recommendations were made:
1. Youths should be encouraged to engage themselves in Cassava production on a large-scale
basis in the study area, since there is profit in cassava production per hectare and majority
of the farmers in the study area are above 51 years of age.
2. Credit/loan facilities should be made available by the government and other relevant
financial institutions at interest rate, so as to encourage farmers to go into cassava
production.
3. Farmers should be encouraged by the government through subsidies on agro-chemicals
like fertilizers, herbicides, and insecticides at affordable rate for use in their production
process.
4. Improved cassava varieties should be made available to the farmers for cultivation.

Disclaimer (Artificial intelligence)

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Option 1:

Author(s) hereby declare that NO generative AI technologies such as Large Language Models (ChatGPT,
COPILOT, etc.) and text-to-image generators have been used during the writing or editing of this
manuscript.

Option 2:

Author(s) hereby declare that generative AI technologies such as Large Language Models, etc. have been
used during the writing or editing of manuscripts. This explanation will include the name, version,
model, and source of the generative AI technology and as well as all input prompts provided to the
generative AI technology

Details of the AI usage are given below:

1.

2.

3.

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