determinantsofprofitabilityof … · 2016-03-27 · introduc)on!...
TRANSCRIPT
Introduc)on Cassava is increasingly gaining ground as an insurance crop against hunger. Cassava is an important food crop in the tropics, accoun8ng for 33% of all staple foods produced in sub-‐Saharan Africa (Adisa et al, 2013). Nearly two thirds of total cassava produc8on in Africa (38.3 million t) is grown in Nigeria, making it the largest producer of cassava in the world (Sanni et al 2009). Cassava processing is one of the off-‐farm ac8vi8es carried out by the rural women. Women play a dominant role in processing and marke8ng of cassava produce such as gari (toasted granules). Small-‐scale gari processing is the domain of women, which provides them with an income and contributes to household food security. However several cassava processing technologies have been introduced including gari processing technology but their adop8on by women processor has been low and they s8ll earn less income from their processing ac8vi8es. Therefore, this study seeks to examine the factors that determine the profitability of gari processing among women processors in Kwara state. The specific objec8ves were to determine the marke8ng margin and efficiency of gari processor and to examine the socio-‐economic factors affec8ng the women processors’ margins in the study area.
Materials and methods Study Area: Kwara state, Nigeria Sources of Data: Cross-‐sec8onal data, primary data. Method of Data Collec)on • Random sampling technique was used to select three local government area in the study area. • Twenty (20) gari processors were selected from each local government area . • Data was collected from a total of sixty women gari processors Analy)cal Techniques The Data were analyzed using; § Descrip8ve sta8s8cs; § Market margin, marke8ng efficiency and § Regression analysis. Marke8ng margin= SP-‐ PP (1) Where: SP= Selling price PP= Purchase Price Marke8ng efficiency is the measure of the market performance. It is expressed as: 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 = 𝑁𝑒𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 /𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 𝑋 100/1 (2) The net margin is the difference between the marke8ng margin and the marke8ng cost. The regression model for the determinants of profitability of gari processing is implicitly stated as: 𝑌=𝑓 ( 𝑋↓1 , 𝑋↓2 , 𝑋↓3 , 𝑋↓4 , 𝑋↓5 , 𝜖) (3) Where Y = Marke8ng margin (Naira) X1= Age (years) X2 = household size X3 = educa8on(years) X4 = capital (Naira) X5 = occupa8on(1 if processor only and o if otherwise) 𝜖 = error term
Results Table 1: Socio-‐economic Characteris)cs of Women Gari Processor Results showed that the women have an average age of 37 years and household size of 7 members. Majority (80%) of the women were married with an average of 6years of educa8on. Twenty three percent of the women had other job and 53.3% had gari processing has their main source of income Table 2: Market Margin and Efficiency Analysis (Gari processing) The result shows that the women processor had an average marke8ng margin of N 8750, an average net margin of N 1552.42and a marke8ng efficiency of 0.216 (21.6%) which is less than one. This implies that the women processor marke8ng system are under efficient and less profitable. Table 3: Mul)ple Regression Analysis result of factors affec)ng women processor Profitability The linear regression model was chosen as the lead equa8on based on the significance of the coefficients and the R2 . The coefficient of age (X4) was significant at (5%) level and nega8ve which implies that the marke8ng margin of the women reduces as they increase in age. The coefficient of capital (X4) was significant at (5%) level and posi8ve. This implies that the more capital the women processor use in processing the higher their profitability
Conclusion The study focused on the profitability of gari processing in the study area. The study revealed that the women are s8ll in their ac8ve age (years) with an average of 6years of educa8on. Twenty three percent of the women had other jobs which may make them less efficient in processing.
The study showed that the women processor has high cost (marke8ng cost) in their processing ac8vi8es which reduces their net margin and marke8ng efficiency.
The age of the women processor and the amount of capital used affects the marke8ng margin of the women
The study recommends that women the processor should be encouraged to make use of improved processing technology which will reduce their marke8ng cost and also increase their profitability.
Policies that will help in increasing access to affordable credit facili8es should be made, this will help in increasing the capital used in processing gari by the women.
Literature cited
Adisa R.S., Ola)nwo K.B. and Shola-‐Adido O. (2013). Adop8on of Cassava Processing Innova8ons among Rural Women in Irepodun Local Government Area, Kwara State, Nigeria PAT 2013, 9(1): 1-‐12
Sanni, L.O., O.O. Onadipe, P. Ilona, M.D. Mussagy, A. Abass, and A.G.O. Dixon, (2009). Successes and challenges of cassava enterprises in West Africa: a case study of Nigeria, Bénin, and Sierra Leone. IITA, Ibadan, Nigeria. 19pp .
1*Oloyede , A. O. and 1Ayinde, O. E. 1 Department of Agricultural Economics and Farm Management University of Ilorin, P.M.B. 1515, Ilorin, Kwara State, Nigeria.
*Corresponding Author: [email protected]
Determinants of Profitability of Gari Processing Among Women Processors in Kwara State, Nigeria
Percentage Minimum Maximum Mean Standard Devia)on Age 30 45 37 4.659 Household size 4 12 7 1.46243 Capital 3000 31000 5550 7785.18077 Educa)on 0 16 6 5.31611 Marital status 80 Occupa)on 23.4 Source of income 53.3
Mean (naira)
Market margin 8750
Net margin 1552.42
Marke)ng cost 7191.583
Market efficiency 0.2156
Func)onal Form Constant X1 X2 X3 X4 X5 R2 Linear 5715.816* -‐135.259* 169.981 -‐1.039 0.511* -‐114.570 0.841 Semi-‐log 8.617* -‐0.021* 0.019 0.010 5.849E5* 0.116 0.794 Donble log 13.106 -‐3.034** 0.716 0.229 0.506** 0.547 0.757 Exponen)al 55065.721 -‐28872.512** 5367.053 2690.26 4258.27** 4526.072 0.665
*significant variable at 5%; ** significant at 10%