World Journal of Food Science and Technology
Volume 1, Issue 2, September 2017, Pages: 32-38
Received: May 1, 2017;
Accepted: May 12, 2017;
Published: Jul. 10, 2017
Views 1730 Downloads 147
Ajila Abiola Samuel, Department of Agricultural and Resource Economics, Federal University of Technology, Akure, Nigeria
The study examined the investment analysis of gari processing machineries in Ondo State, Nigeria. Multi-stage sampling technique was used to select a sample of 45 respondents. Data was collected from primary sources through the use of well-structured questionnaires. Tools utilized included descriptive statistics and budgetary analysis. In addition, tools of investment analysis (NPV, BCR and IRR) were used to appraise investment in a model mechanized gari processing plant. The study revealed that there are gari processors who procure cassava tubers and use processing facilities owned by other entrepreneurs to process their cassava into gari. They hence incur no fixed cost. It also revealed that there are entrepreneurs, though fewer in number, who invest in gari processing machines and set up processing centres. They charge tolls (rates) for the use of their machines by other processors. The operations of both the processors and owners of the processing centres were found to be profitable. The empirical results of budgetary analysis revealed that the gross margin to gari processors was ₦148,029 per annum. The ratio of the gross margin to the average variable cost was 1:0.16. It also revealed that the estimated net revenue of owners of gari processing machineries was ₦1,286,400 per annum which represent 125.7% of the total cost of production. The implication is that for every one nairainvested, the processor gained 125.7 kobo. The investment analysis for a model mechanized gari processing centre was also found to be profitable with an NPV of ₦6,248,430, BCR of 1.1 and IRR of 46%. The result of the study showed that gari processing enterprises are profitable and investment in mechanized gari processing could be profitable if there is adequate supply of cassava tubers. It was therefore recommended that Credit facilities should be channeled to processors through the current micro-credit scheme of the Government to enable producers strengthen their enterprises by acquiring processing inputs which they claim are currently beyond their reach.
Ajila Abiola Samuel,
Investment Analysis of Gari Processing Machineries in Ondo State, Nigeria, World Journal of Food Science and Technology.
Vol. 1, No. 2,
2017, pp. 32-38.
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Adegeye, A. J (1999): Issues and Options in Expanding the Cassava Industry (Production and Processing) in Nigeria. Report submitted to International Fund for Agricultural Development (IFAD).
Adegun, I. K., Ajimotokan, H. A. Akinlosoye, A. A. and Babarinde M. S. (2011): Development of a cassava processing plant for producing improved stone-free Gari. Journal of Agricultural Technology 7 (5): 1193-1198.
Afolabi J. A. (2009): An Assessment of Garri Marketing in South - West Nigeria, Journal of Social Sciences 21 (10): 33 - 38.
Alinor, A. N. (2002): Economic Study of Cassava Processing in Nsukka Agricultural Zone of Enugu State. Unpublished M. SC. Thesis, Department of Agricultural Economics, University of Nigeria, Nsukka.
Anyaru, C. R, Anayo and J. C. Okagbue (1993): Processing and Marketing of Gari in Anambra State. A case study of Onitsha Local Government Area (unpublished P. G. D. Thesis). Agric Econs Department U.N.N.
CBN (2004) Central Bank of Nigeria Annual Reports.
Davies, R. A, Olatunji, M. O and Burubai, W. (2008). A Survey of Cassava Processing Machinery in Oyo State. World Journal of Agricultural Sciences 4 (3): 337-340.
Ekwe K. C., I Nwachukwu and C. C Ekwe (2008): Determinants of Improved Gari Processing Technologies Utilization And Marketing Profile Among Rural Households In South-Eastern Nigeria. Nigerian Journal of Rural Sociology, Vol. 8 No 1.
F. A. O (2009). FAOSTAT Database, http://faostat.fao.org.
Halm, S. K. (1989): An overview of African Traditional Cassava Processing and Utilization Outlook on Agriculture Vol. No. 3 pp 110 - 118.
Ibekwe U. C, Chikezie C, Obasi P. C, Eze C. C and Henri-Ukoha, A. (2012): Profitability of Garri Processing in Owerri North Local Government Area of Imo State. ARPN Journal of Science and Technology. Vol. 2. (4): 340 — 343.
IITA (International Institute of Tropical Agriculture) (2005): Integrated Cassava Projectwww.email@example.com.
IITA (International Institute of Tropical Agriculture) (1989): Cassava Processing and Utilization. Research Briefs Vol. 9 No. 3.
Ijigbade, J. O., Fatuase, A. I. and Omisope, E. T (2014): Conduct and Profitability of Gari Productionfor Increased Food Security in Ondo State, Nigeria. Journal Of Humanities And Social Science, Volume 19, Issue 7, Ver. VI (July. 2014), PP 89-95.
J. A. L. Effiong, J. O. Aligbe, C. O. Albert and K. I. Ohazuruike (2014): Costs and Returns Analysis of Gari Processing in Owerri West Local Government Area of Imo State, Nigeria. Journal of Chemical, Biological and Physical Sciences, Vol. 4, No. 2.
J. O Amao, O. I Adesiyan and B. A Salako (2007): Economic Analysis of Cassava Processing into Gari in Ogo Oluwa Local Govt. Area of Oyo State Nigeria. Pakistan Journal of Social Sciences pp: 220-227.
L. A. Sanni, O. O. Odukogbe, M. O. Faborode, R. O. Ibrahim (2015): Optimization of Process Parameters of a Conductive Rotary Dryer for Gari Production. Journal of Emerging Trends in Engineering and Applied Sciences, 6 (7): pp: 255- 259.
National Population Census, 2006: National Population Census data.
Okpeke M. Y and Onyeagocha S. U. O (2015); Analysis Of Processing Cassava Tubers Into GarriIn Isoko North Local Government Area Of Delta State, Nigeria. European Journal of Agriculture and Forestry Research Vol. 3, No. 5, pp: 15-25.
RMRDC (2004) "The Case of Cassava" Survey reports on Selected Agricultural Raw Materialsin Nigeria, Abuja.