Comparative analysis of the profitability of small and medium scale cassava and palm fruit processing in Abia State, Nigeria

Abstract

This study was designed to comparatively examine the profitability of small and medium scale cassava and palm fruit processing in Abia State, Nigeria. Multi-stage sampling technique was adopted in selecting 50 cassava and 50 palm fruit processors to give total respondents of 100. Simple descriptive statistics such as means and percentages, cost and returns analysis and Z-test were adopted in analyzing the data. The socioeconomiccharacteristics of the processors showed that middle aged persons between 25 and 54 accounted for majority (70% and 60%) of the respondents for cassava and palm fruit processors respectively. Also majority (60% and 64%) of the respondents were female. The majority of the respondents (60% and 54%) of the cassava and palm fruit processors had at least secondary education implying that the processing business was dominated by literates/elites. Cassava processors gained monthly net returns of N308,000 as against N 227,000 realized by palm fruit processors, indicating that cassava processing is more profitable than palm fruit processing. In view of its contribution to this paper, the following are recommended: a re-establishment of active processing firms which are income-spinning ventures; on the macro-level, government should discourage the exportation of competing products which has a multiplier effect on the operations of the firms and as such protect them from harsh competitions capable of weakening their profit performances.
 Key words: This study was designed to comparatively examine the profitability of small and medium scale