Journal of
Agricultural Extension and Rural Development

  • Abbreviation: J. Agric. Ext. Rural Dev
  • Language: English
  • ISSN: 2141-2170
  • DOI: 10.5897/JAERD
  • Start Year: 2009
  • Published Articles: 455

Full Length Research Paper

Economic analysis of plantain processing industry in Akure south local government of Ondo State

J. A. Folayan1* and J. O. Bifarin2
Email: [email protected]

  •  Accepted: 13 April 2011
  •  Published: 30 April 2011

Abstract

This study examined the economics of plantain processing industries in Akure South Local Government of Ondo State of Nigeria for the purpose of assessing socio-economic characteristics of plantain processors, determining the cost and return of the plantain industries, the factors that affect level of profitability and highlight the problems encountered in the industry. The data was collected by use of structured questionnaires and analyzed by use of frequency, percentages, gross margin and regression analyses. The result revealed that, 68% of the respondents engaged in other activities, apart from plantain processing 73% obtained their capital from informal sources, 73% obtained their supplies on weekly basis and 70% sourced their supplies directly from farmers while the other 30% sourced their supplies from wholesalers and retailers, the result further revealed that the gross margin per annum was N192, 007.66; an average of N16, 000 per plantain seller per month. The regression result shows that the frequency of supply of plantain is significant at 5% level. The plantain processor submitted that they were faced with problem of inadequate storage facilities, bad road network, inadequate capital and price instability. It was recommended that government and other relevant agencies should encourage the plantain processor by providing credit facilities and basic infrastructures like storage facilities and good road network.

 

Key words: Plantain processors, socio-economics, gross margin and regression analyses.