ECONOMICS OF PROCESSING CASSAVA INTO GARRI AND PELLETS IN KOGI STATE, NIGERIA By INYADA, ALADI EVELYN PG/M.Sc/08/48699 DEPARTMENT OF AGRICULTURAL ECONOMICS UNIVERSITY OF NIGERIA, NSUKKA DECEMBER, 2014 i TITLE PAGE ECONOMICS OF PROCESSING CASSAVA INTO GARRI AND PELLETS IN KOGI STATE, NIGERIA A DISSERTATION SUBMITTED TO THE DEPARTMENT OF AGRICULTURAL ECONOMICS, UNIVERSITY OF NIGERIA, NSUKKA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTERS OF SCIENCE (M.Sc) DEGREE IN AGRICULTURAL ECONOMICS. By INYADA, ALADI EVELYN PG/M.Sc/08/48699 DECEMBER, 2014 ii CERTIFICATION INYADA, Aladi Evelyn, a postgraduate student in the Department of Agricultural Economics, with registration number PG/M.Sc/08/48699 has satisfactorily completed the requirements for the award of Degree of Masters of Science (M.Sc) in Agricultural Economics. The work embodied in this dissertation, except where duly acknowledged, is an original work and has not been previously published in part or full for any other diploma or degree of this or any other University. ------------------------ --------------- ------------------------------ --------------- Prof. E. C. Okorji Date Prof. S.A.N.D. Chidebelu Date (Supervisor) (Head of Department) ---------------------------------- External Examiner iii DEDICATION This research work is dedicated to my father Elder Mark Amek-Ochani Inyada (of blessed memory) whose value for education has made me to come this far. iv ACKNOWLEDGEMENT My profound gratitude goes to Professor E. C Okorji who I am extremely fortunate to have as a supervisor and an academic father. I am not sure you know how much you have blessed my life. Thank you for encouraging me to think and spurring me to work. I wish to sincerely appreciate the Head of Department Prof. S.A.N.D. Chidebelu, Prof. C. J. Arene, Prof. N. J. Nweze, Prof. (Mrs) A. I. Achike, Prof. E. C. Eboh; Dr. A. A. Enete, Dr. F. U. Agbo, Dr. Ben Okpupara, Dr. E. Amaechina and other academic staff of the Department of Agricultural Economics, University of Nigeria, Nsukka for their constructive suggestions at proposal and seminar stage which had further helped a great deal to sharpen the focus of the study. I am indeed indebted to Ms Blessing, Mrs. Romaine, Sister Ifeanyi and other non-teaching staff of the Department of Agricultural Economics for their unalloyed cooperation and support at all times of need. The immeasurable contributions of my friends Francisca Okoye, Amusa Taofeeq Ade and my M.Sc classmates too numerous to mention are sincerely appreciated. To Pharm. Ken Oche Ameh and Mr. Sonnie Eleojo C. Ameh my husbands, I love you. To my beloved neighbour in whom I am well pleased and friends who went beyond the call of friendship, I am very grateful for being there all the time. To God Almighty who in his infinite mercy qualified me to be among the qualified, I am forever indebted. Inyada Aladi Evelyn University of Nigeria, Nsukka December, 2014 v TABLE OF CONTENTS Title Page i Certification ii Dedication iii Acknowledgement iv Table of Contents v List of Tables vii List of Figures viii Abstract ix CHAPTER ONE: INTRODUCTION 1 1.1 Background Information 1 1.2 Problem Statement 4 1.3 Objectives of the Study 6 1.4 Hypotheses 6 1.5 Justification of the Study 6 CHAPTER TWO: LITERATURE REVIEW 8 2.1 Importance of Processing 8 2.2 Cassava products 10 2.3 Cassava utilization 12 2.4 Cassava processing techniques 13 2.5 Gender roles in cassava processing 18 2.6 Constraints in cassava processing 20 2.7 Theoretical framework 22 2.8 Review of empirical studies 24 2.9 Analytical framework 28 vi CHAPTER THREE: METHODOLOGY 32 3.1 Study Area 32 3.2 Sampling Procedure 33 3.3 Data Collection 33 3.4 Data Analysis 34 3.4.1 Likert Rating Scale Technique 34 3.4.2 Gross Margin Analysis 34 3.4.3 Multiple Regression Model 36 3.4.4 Student t-test 37 CHAPTER FOUR: RESULTS AND DISCUSSION 38 4.1 Socio-Economic Characteristics of the Processors 38 4.2 Technologies in Cassava Processing 42 4.3 Gender Roles/Involvement in Cassava Processing 47 4.4 Socioeconomic Characteristics Influencing Income of the Processors 51 4.5 Profitability of Cassava Processing into Gari and Pellet 54 4.6 Major Constraints Militating against Cassava Processors 57 4.7 Testing of Hypotheses 60 CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS 62 5.1 Summary 62 5.2 Conclusion 64 5.3 Recommendations 65 REFERENCES 67 APPENDIX A: Questionnaire for Data Collection 75 vii LIST OF TABLES Tables 2.1 Frequency Distribution of Men, Women and others in Cassava Processing (COSCA Study, 1992) 19 4.1 Frequency Distribution of Socioeconomic Characteristics of the Cassava Processors 41 4.2 Mean Ratings of Various Traditional Technologies Used by Cassava Processors in Kogi State, Nigeria 44 4.3 Mean Ratings of Various Improved Technologies Used by Cassava Processors in Kogi State, Nigeria 47 4.4 Mean Comparison of Men and Women Involvement in Cassava Processing into Garri in Kogi State, Nigeria 49 4.5 Mean Comparison of Men and Women Involvement in Cassava Processing into Pellets in Kogi State, Nigeria 50 4.6 The Result of Multiple Regression Analysis on the Influence of Socio- economic Characteristics of the Cassava Processors on Income 53 4.7 Profitability of a Tonne of Cassava Tubers Processed into Garri 55 4.8 Profitability of a Tonne of Cassava Tubers Processed into Pellets 57 4.9 Mean ratings of the Major Constraints Militating against Cassava Processors in Kogi State, Nigeria 59 4.10 t-test statistics of the involvement of men and women in cassava processing into garri and pellets 61 viii LIST OF FIGURES Figures 2.1 Infinite Elastic Demand Curve of the Cassava Processing Industry 23 4.1 Cassava Peeling by Women Using Kitchen Knife 43 4.2 Dewatering Using Heavy Stones 43 4.3a Cast Iron for Frying Garri 43 4.3b Cast Iron for Frying Garri 43 4.4 Sun-drying Products on Platform 43 4.5 Motorized Grater 45 4.6 Fermentation in Plastic Tank 45 4.7 Screw Jack for Dewatering Grated Cassava 45 ix Abstract This study was conducted to investigate the economics of cassava processing into garri and pellets in Kogi State. Data were collected from 100 cassava processors (22 males and 78 females) and analysed to describe socio-economic characteristics, identify and describe various technologies used in cassava processing, ascertain gender roles, estimate the influence of socio-economic characteristics on income of processors, determine profitability and identify constraints militating against the processors of cassava in the study area. Multi- stage random sampling techniques were employed in the selection of local government areas, communities and processors on who structured questionnaires were administered. Descriptive statistics, gross margin, rate of return on investment and multiple regressions were used for analysis. Results shows that majority of the processing fell within the middle age group (31 – 50 years) with an average years of processing experience of 22 years; mostly women with an average of 8 persons per household and 7 years of schooling. Traditional technologies were employed by the cassava processors with low level of men’s involvement relative to high involvement of women in cassava processing activities. Six out of nine explanatory variables were significantly related to income. These include; age, gender, education, experience, access to credit and number of labourers in the cassava processing enterprise. Processing cassava into garri and pellets were profitable, although processing cassava into garri was more profitable with gross margin of 22,700 and profitable index (PI) of 0.04 than pellets with gross margin of 13,100 with profitable index (PI) of 0.33. The major constraints facing the cassava processors in the study area include: poor storage facilities, high cost of processing inputs, poor road network for the transportation, bulkiness of fresh tubers, unstable weather and shortage of labour. The study therefore recommended that improved cassava processing technologies should be made available to the processors to enhance productivity and acceptability of their products, capacity building of the cassava processors for their improved profitability in the cassava processing enterprise, regular visits by agricultural extension agents for quick adoption of improved cassava processing technologies, stabilization of prices of agricultural commodities through the provision of a functional marketing channel and provision of storage facilities with good road network for improved production. CHAPTER ONE INTRODUCTION 1.1 Background Information The food problems in Nigeria and other developing countries can be reduced or even eliminated by intensifying agricultural production (Asiedu, 1989). It is based on this that emphasis of agricultural research for many years has been mainly on increased food production. One of the crops where considerable increased production level has been noticed is cassava. Nigeria is the world's largest producer with the total production of 38 Million tonnes in 2005 (Food and Agricultural Organization, 2006). The major area where the crop is grown extends from the south coast to the middle belt (Ogbe, Dixon and Alabi, 2003). By zone, the North Central produces about 7 million tonnes of cassava a year thus ranking first on the per capita basis of 0.72 tonnes/person in 2002 (PCU, 2003). Within the zone Benue and Kogi are the largest producers of cassava in the country (IITA, 2004). Cassava was introduced m the republic of Congo from South - America about 400 years back (Nweke, 2004) and it forms the staple part of the diet in many of the African countries. Since its introduction, it has spread through Sub-Saharan African to become the dominant staples in the diet of the people. Brazil, Indonesia, Nigeria, Thailand and Zaire are the biggest producers, each producing over 10 million tones and together accounting for over 63 percent of World's production (CBN, 2004).