ECONOMIC ANALYSIS OF THE PROCESSING OF RICE AND CASSAVA IN IREPODUN / IFELODUN AND IKOLE LOCAL GOVERNMENT AREAS OF EKITI STATE, NIGERIA

ABSTRACT

Cassava (roots and tubers) and Rice (cereals) are common staples among small scaled farmers in developing countries like Nigeria and it is an age-long practices. The categories of farmers that engages in value-addition of processing have recorded an appreciable income increase and has economic advantages. Hence, this study examines economic analysis o f these staple foods in Ekiti State, Nigeria using two dominant local-government areas (lrepodun / lfelodun and Jkole). The study adopted a two stage sampling procedure to select a representative sample for the study to select 140 food processors in Rice and Cassava respectively . Structured questionnaire was used to collect data used to achieve the objectives o f the study. The socio-economy variables results revealed modal age range o f 61-70 with mean of55years. Experience and years of education in food processing are significant factors. Cross tab analysis revealed that 31% o f the farmers who took decision to process farm outputs further had tertiary education. Moreover, proportion of farmers that engages processing of staple foods are 95. 7%. Cross tabulation analysis revealed that 34.3% of those who processed farm inputs made N100, 000.00 and above annually as against 11% of farmers who did not, while t-test statistics revealed a significant difference between farmers who processed food and those who did not. Multiple regression multiple determination (R2) results indicated farmers 'decision to processed farm outputs further are72% and income increase 74% respectively . Farmers who made significant revenue did processed farm outputs suggesting that food processing is a significant factors to income increase. Hence, the study recommends that government should formulate and implement economically viable value addition reforms policy to ensure that farmers process their farm outputs further.

Keywords: Economic analysis, Rice and Cassava processing, Profit and Loss, ANOYA. Xll

TABLE OF CONTENTS

CHAPTER ONE: Introduction
1.1 Background of the study
1.2 Problem statement

1.3 Research question

1.4 Objective of study

1.5 Specific objectives

1.6 Justification

1.7 Hypothesis of the study

CHAPTER TWO: Literature Review
2.1 Staple foods

2.1.1 Global production of rice

2.1. l .1 Rice types and cultivation
2.1.2 Global production of cassava

 2.2 Rice production in Nigeria

2.2.1 Empirical studies on policies influencing rice production

2.3 Cassava production in Nigeria

2.4 Economic benefits o f staple foods (rice and cassava) processing
2.5 Nutritional values of staple foods (rice and cassava roots)

2.6 Factors affecting production-of staple foods

CHAPTER THREE: Methodology

3. I Area of study

3.2 Sampling techniques and data collection

3.3 Method of data collection

3.4 Analytical procedure

3.4.1 Assumption for the use of multiple regression for the study
3.4.2 Variable and their definitions

CHAPTER FOUR: Result and Discussion

4.1 Description of socio-economics variable

4.1.1 Age distribution of household heads

4.1.2 Distribution of family size and sex of household heads
4.1.3 Sex and marital status of respondents

4.1.4 Years ofschooling ofhousehold heads

4.2 Analysis of objectives

CHAPTER FIVE: Summary, Conclusion and Recommendation
5.1 Summary

5.2 Conclusion

5.3 Recommendation

References

Appendix