Purpose
The purpose of this paper is to analyse the effects of the determinants of farmer participation in value addition through cassava processing in Nigeria.
Design/methodology/approach
This study employs the probit model to analyse the determinants of farmer participation in value addition whereas the Tobit model is used to investigate the determinants of the extent of producer’s involvement in value addition using a data set of 400 cassava farmers drawn from the Oyo State of Nigeria.
Findings
The findings further indicate that among other factors, human capital factors including farmer age and location variable tend to reduce farmer participation in value addition through processing whereas experience and record keeping promote farmer participation in cassava processing. Institutional variables, notably membership of farmer association, extension access and credit access, enhance farmer participation in value addition. Finally, ownership of a radio set, a television set and access to electricity strengthen the value-adding capacity of farmers.
Research limitations/implications
This study only considers the determinants of producers’ participation in cassava processing but does not explicitly analyse the impact of value addition on their profit margin. This issue would form a basis for future research to enhance knowledge in the extant literature.
Practical implications
The study suggests that if the value-adding capacity of farmers is strengthened, rural economy is likely to be improved upon through the proliferation of rural food processing enterprises.
Originality/value
Despite the relevance of developing food value chains in Africa and integrating farmers in them, there are limited studies on promoting value addition among farmers. This study contributes to narrowing this knowledge gap.
Improving rural farmers’ access to direct agricultural markets is required to ensure sustainable supply of food. Rural farmers in the developing world account for the largest share of food supply including cassava. Globally, cassava (Manihot esculenta Crantz) is recognised as an important source of valuable semi-processed industrial raw materials such as ethanol, high-quality cassava flour and starch. However, there is less empirical research on rural farmers’ participation in direct marketing channels in the cassava sector. This study focused on analysing the determinants of farmer participation in direct marketing channels using the case of the cassava sector in the Oyo State of Nigeria. The Bivariate Tobit model was applied in the empirical analysis, based on a primary dataset generated from 400 rural cassava farmers from the Oyo State of Nigeria. The result showed that, in general, farmers sold a higher percentage of their cassava output to processors. The Bivariate Tobit results showed that human capital, physical capital, social capital, and market conditions had significant effects on farmers’ decisions on whether to sell their cassava output directly to processors or middlemen. On the contrary, natural and financial capitals did not significantly affect farmers’ marketing channel decision. The study recommends that policy instruments should target improving road networks in rural areas, enhancing farmers’ access to market information, and increasing membership of farmer association to ensure an active participation of farmers in the direct marketing channels.
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