COSTS AND RETURN ANALYSIS OF CASSAVA PROCESSING INTO “AKPU” IN LAFIA METROPOLIS, NASARAWA STATE, NIGERIA

Abstract

This study analysed the costs and return of cassava processing into ‘Akpu’ in Lafia Metropolis, Nasarawa State, Nigeria. The specific objectives aimed to identify the socio characteristics of ‘Akpu’ processors, to determine the costs and return and hence the profitability of ‘Akpu’ processing, and to identify the constraints faced by processors in the study area. A purposive sampling technique was used in selecting (60) females across five cluster in the study area. Primary data were collected through structured interviews, analyzed using descriptive statistics and gross margin analysis. The result showed that all the processors that were female. Furthermore, it was revealed that 80% of the respondents were engaged in ‘Akpu’ production on full time basis, indicating that it serves as primary source of income for this category of processors.  Majority, (90%) of producer utilize personal savings as source of their initial capital. Also, the results indicated that 91.66% were married. The gross margin analysis revealed that for every N1 invested, a return of 27% was realised with a net profit of N236,952. High costs of labour ranked highest (64.63%) of the production cost. The study concluded that processing cassava into Akpu in the study area is profitable. The study recommends that research scientist, especially Agricultural Engineers should intensify research to come up with affordable modern equipment in processing ‘Akpu’ in order to cut production cost and thereby increase the profitability of ‘Akpu’ production.