Analyses Of Profitability Of Cassava Root Processing In Ikwuano Local Government Area Of Abia State

ABSTRACT

The study is on the analysis of cassava root processing in lkwuano local government area of Abia state. A random sample of 80 respondents was chosen from the study area for this study. Questionnaires were used for dat'a collection. Analysis was done using tables, bar chart, mean, frequency distribution, percentage, marginal value product, regression analysis and budgetary S' technique. The study shows that processors in the study area still use traditional processing techniques. It was discovered that r 8082 cassava variety had the best comparative advantage over the other varieties especially with respect to the weight of garri produced (14.7kg).The study also shows that cassava root processing in the study area is profitable with average gross revenue, average gross margin and average net farm income of N91509, N69959.08, N8832430 respectively. The study also showed that the variable cost account for 48.7% of the total costs of production while the fixed cost was 51.35. fixed cost, labour.and total variable cost were significant factors that influence revenue. Marginal value product (MVP) for fixed input and total v3r1ab1e inputs were lower than the acquisition cost (MFC) indicating that processors over utilized the input. Conversely, the MVP for labour was high31 than the acquisition cost (MFC) indicating that labour was under utilized. The study concluded that the cassava root processor in the study area were efficient in the use of critical processing inputs.