ANALYSIS OF THE PROFIT MARGIN ALONG THE PLANTAIN VALUE CHAIN IN OSUN STATE, NIGERIA
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Date
2018-10-10
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Abstract
Plantain is a crop of economic value and can serve as a source of foreign exchange if given
proper attention. There is, thus, the need to explore this potential, especially as regards the
profit accrued by the various actors in the plantain value chain. This study sought to estimate
the profit margin of players along the plantain value chain, examine the factors affecting the
margins of actors and identify the constraints faced by them. Random sampling technique
was used to select 125 producers, processors and marketers in Osun state. The primary data
used were collected using well-structured interview schedule. Gross margin, net marketing
margins; ordinary least square regression; and Likert-type scale were used for data analysis.
The study revealed that the gross margin accrued to plantain producers was ₦639,148.31/ha
per annum, while the net marketing margin/bunch for the plantain processors and marketers
were ₦1836.61 and ₦204.96 respectively. Household size, quantities of labour, suckers, and
pesticide used were factors affecting the gross margin of producers. Total input cost
significantly affected the marketing margin of the processors, while it was transportation cost
for the marketers. The major constraint faced by the plantain farmers was high cost of labour
whilethe processors and marketers had the challenges of high cost of plantain and lack of a
uniform unit of measurements respectively. The study concludes that the plantain value chain
is profitable for all the actors, and recommends that the government should provide
incentives that would encourage more people to go into plantain production, processing, and
marketing
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Keywords
Plantain, Value chain, Actors, Profit margin, Constraints
Citation
Olaghere I.L., Omotesho O.A., Ademola O.E., Osasona K.K, & Akinrinade A.F. (2018): Analysis of Profit Margin along the Plaintain Value Chain in Osun State, Nigeria. AGROSEARCH A Journal of Agriculture, Food and Development. 18(2):72-85, Published by Faculty of Agriculture, University of Ilorin. Available online at: https://dx.doi.org/10.4314/agrosh.v17i1.5