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The Effect Of Value Addition On Cassava Farmers Finance Essay

This study dealt with the effect of value addition on revenue/profit of cassava farmers in ijebu north local government area of ogun state Nigeria. Simple random sampling technique was used to select thirty cassava farmers (respondents) in the study area. Descriptive and inferential statistics were used to analyze the result of the study. The result of regression analysis indicated that garri, fufu are the major products produced by the respondents, they are significant at 5%, which imply that they have a positive relationship with revenue. It also showed that the sex of the respondents is also significant at 5% and has a positive relationship with revenue derived from value addition on cassava. In addition, regression analyses revealed that, the more the variety of products derived from cassava through value addition the higher the revenue / profit of the respondents. The study revealed that there is no significant difference in the revenue accruable to cassava farmers with respect to access to processing technology because the analysis of variance, F ratio and Chi-square values indicated that the observed values(0.1146, 0.1218 at 5 % level of significance are less than the tabulated values (3.52, 23.7). Similarly there is no significant difference in the revenue accruable to cassava farmers with respect to type of processing technology. These could be attributed to the fact that the respondents in the study area used traditional processing technology which has significant effect on the volume of the products produced as well as farmer’s income/revenue. As a result, there is need for need for further diversification of cassava into various products, effective marketing linkages should be made available for cassava farmers and awareness should be created on the value, uses and benefits of cassava and its products as jingles on the radio, television and other rural communication strategies should be put in place by agric Extensionist to alert cassava farmers on recent production technology in the study area. The result also revealed that there is no significant difference in the revenue accruable to cassava farmers with respect to access to processing technology. This implies that the revenue accruable to the respondents is not influenced by access to processing technology because most of them do not have the require capital to acquire the technology.

Key Words: Value Addition, Revenue, Cassava Farmer.

1.1 INTRODUCTION.

Cassava is perennial woody shrubs with an edible root. Which grows in tropical and subtropical areas, they grows in the tropical world. It is also called Yuca. Manimandioca, Cassava has the ability to grow on marginal lands, where cereals and other crops do not grow well, it can tolerate drought and can grow in low nutrient soils. Because cassava roots can be stored in the ground for up to 24 months, and harvest may be delayed until market, processing, or other conditions are favorable.

Cassava is the basis of many products, including food. In Africa and Latin America cassava is mostly used for human consumption while in Asia and parts of Latin America, it is also used commercially for the production of animal feed and starch-based products. In Africa, cassava provides a basic daily source of dietary energy. Roots are processed into a wide variety of granules, pastes, flours etc, or consumed as a green vegetable, which provides protein and vitamins A and B. Cassava starch is used as a binding agent in the production of paper, and textiles, and as monosodium glutamate, an important flavoring agents in Asia cooking. In Africa, cassava is beginning to be used in partial substitution for wheat flour.

FAO estimates, 172 million tones of cassava were produced worldwide in 2000. Africa accounted for 54%, Asia for 28%, and Latin America and the Caribbean for 19% of the total world production. In 1999, Nigeria produced 33 million tones making it the world’s largest producer. In terms of area harvested, a total of 16.8million hectares were planted with cassava throughout the world in 2000, about 64% of this was in Sub-Saharan Africa. The average yield in 2000 was 10.2 tonnes per hectare. But this varied from 1.8 tonnes per hectare in Sudan to 27.3 tonnes per hectare in Barbados. In Nigeria the average yield was 10.6 tonnes per hectare.

In spite of this, average amount of yield per hectare, cassava production is constraint by pests and diseases, good quality stem cutting, labour at harvest time, improved post harvesting handling. According to Balogun (2006) cassava is the most highly perishable among the roots and tuber crops, deterioration sets into cassava barely 72 hours after harvest. The implication of this according to Balogun (2006) is that cassava must be converted through processing to other forms that are more stable while other members of the group can still be stored in their raw forms through established and available preservation methods. Odebode (1999) opined that processing prolongs shelf-life and enable production of varieties, also keeps crops fresher and tastier, and improves the quality of crops, for instance, cassava cannot be stored for more than three days but when processed into its various products (e.g. gari, cassava flour etc) can be stored for a longer period.

Problem Statement

Some agricultural products have the feature of perishability that is they easily lose their values after harvesting, some of them are lost due to late harvesting to insects and non-insect pest such as rats, birds, monkeys because of inadequate processing and storage facilities according to Babalola (2001) the processing and storage of food products have not kept pace with increased food production. The loss is due to poor handling and lack of adequate storage, was estimated to be between 20 to 40 percent of the harvested product annually. Other features of some of the agriculture products are short shelf, bulkiness in terms of weight and volume. This affects the cost of transportation and storage as a result it has to undergo physical transformation in order to make it fit for consumption and to prolong its shelf live, marketability, and stability of the crop (value addition).

There are various products that could be derived from cassava for example, gari, fermented cassava flour, foofoo (fufu), garivita (lebu), tapioca dry cassava chips, cassava starch, adhesive, dextrin pastes, fillers in paint, alcohol, glues, paper making, wood, plywood and veneer. According to Akinyemi (2007) with the introduction of high yielding cassava varieties (TMS) the status of cassava has been transformed from being a subsistence crop to a high yielding cash crops that is prepared and consumed by both the rural and urban populace as convenient food products e.g. Gari, Fufu, Lafun etc she stated further that the accessibility an availability of improved processing methods and technologies to produce high quality unfermented cassava flour partial or whole substitute for wheat flour in bakery and confectionary products such as bread, biscuit, sausage rolls, chin-chin are possible. This will equally serve as a means of enhancing household food security for both rural and urban population; create new employment, income generation and economic self-reliance both at the household and industry levels for cassava processors.

1.3 Research Questions.

What are the types of value addition to enhance cassava crop in the study area?

Does the farmer have access to processing technology to add value to cassava in the study area?

What are types of processing technology adopted by farmers in the study area?

Does the value addition adopted improve the farmer’s revenue?

What are sources of awareness of cassava processing technology?

What are the marketing outlets available to the cassava farmers in the study area?

Objectives of the study

Major Objective

Identify types of value addition on cassava.

To find out whether or not the cassava farmer’s have access to processing technologies to add value to cassava.

Identify types of processing technologies adopted by the farmers.

List the marketing outlets available to the cassava farmers.

To determine the socio-economic characteristics of the cassava farmers.

Hypothesis of the study

The following hypothesis will be tested in null form.

H1: There is no significant difference in the revenue accruable to cassava farmers with respect to access to processing technology.

H2: There is no significant difference in the revenue accruable to cassava farmers with respect to type of processing technology.

Research Methodology

Study Area

The study area is located within the tropics and precisely lies along latitude 70 25N and longitude 20 571E in Ijebu North Local Government area of Ogun State Nigeria. The population of the study would consist all the cassava farmers in the designated local government area. The list of registered cassava farmers was obtained from Ogadep office zone. Simple random sampling technique was used to select thirty respondent (cassava farmers) in study area.

Measurement of Variables

In this study, the reaction of the respondents about the improvement in their income as a result of value addition will be made in form of statement and respondents will be asked to rank their opinion on a point likert scale.

Possession of processing technology

dummy variable will be used to categorized possession of technology (1) non possession (0)

Type of processing technology adopted by the respondents will be measured on nominal scale that is: Traditional Processing Methods (1) Modern (improved) Method

(2).

Socio-Economic Characteristics

Age of respondents: Respondent will be asked to mention their age; this will be obtained in years and measured at interval level. This will later be categorized at interval level as:

Above 60years =5

Between 50-59 years =4

Between 40-49 years =3

Between 30-39 years =2

Less than 30 years =1

Educational Attainment: Respondents will be asked to state specifically their highest level of education. The different levels of education will be assigned the following scores, measured at ordinal level:

Tertiary Education =5

Secondary Education =4

Primary Education =3

No formal Education =2

Others =1

Sex of respondents will be assessed nominal scale as male =1 and female =2

Data Analysis

The statistical tools that were used for analyzing the data include both descriptive statistics such as frequencies mean, percentages were used to summarize information on respondents’ socio-economic characteristics. The relationship between variables will be determined by Regression analysis and Chi-square.

Result and Discussion

Table 1: Socio-Economic Characteristics of Cassava Farmers.

Classes

Number of respondents

Age (years)

30 – 39

3 (10%)

40 – 49

10 (33.3%)

50 – 59

12 (40%)

Above 60 years

5 (16.7%)

Educational Background

Primary

8 (26.6%)

Secondary

3 (10%)

Tertiary

2 (6.7%)

No formal Education

17 (56.7%)

Sex

Male

10 (33.3%)

Female

26 (66.7%)

Field Survey 2007

From table 1, it was discovered that those ages between 50 – 59 years represent 40 percent of the correspondent – interviewed, 43.3 percent of the respondents interviewed had one formal education of the other, but 56.7 percent of the respondents had no formal education. It was discovered from the study that most of the respondents were female; they constitute 66.7 percent of the respondents, which imply that the female are more into cassava production than the male in the study area. This equally indicates that the populations of the farmers in the study area are ageing. This is line with the view of the presidential committee on successor generation of farmers (2006) that most recent literature put the average age of farmers between 48 and 65 years.

Table 2: Types of Value addition on cassava

Types of value addition on cassava

Number of respondent

Gari

18 (60%)

Fufu

8 (26.7%)

Local starch

1 (3.3%)

Lafun

3 (10%)

Field survey 2007

From the table 2 60 percent of the respondents transformed cassava products into Gari, 20.7 percent to fufu, 3.3 percent to local starch, while6.0 percent to lafun. This is because Gari is one of the traditional foods (staples) of the people in the study area.

Table 3: Access to processing technology to add value to cassava

Access to Processing Technology

No of Respondent

Yes

14 (46.7%)

No

16 (53.3%)

Field Survey 2007

From the table 3, only 46.7 percent of the respondents had access to processing technology, 53.3 percent of the respondent did not have such opportunity. This is because most of the respondents still depend on traditional methods of processing cassava. They were not aware of the recent initiatives of the government to turn cassava into an export crop, because of diverse products that could be derived from cassava, thereby improving the farmer’s revenue (income).

Table 4: Type of Processing Technology

Types

% use by of respondents

Traditional Processing Technology

20 66.7%)

Modern Improved Method

8 (26.7%)

------

2 (6.6%)

Field Survey 2007

From the table 4, 66.7 percent of the respondents used traditional processing method, 26.7 percent of the respondents used modern improved method, while 6.6 percent did not use any processing method at all. This is because most of the respondents did not have the capital to access the use of modern improved processing technology.

Table 5: Source of Awareness of Cassava Processing Technology

Source of Awareness of Cassava Processing Technology

Respondents

Visit to Urban Centre

-

Extension Agents

-

Contact Farmers

3 (10%)

Cooperative Society

3 (10%)

Non Governmental Organization

2 (6.7%)

Other Farmers

9 (30%)

Advisory Services

7 (23.3%)

Parents

6 (20%)

Source Field Survey 2007

From the table 5, 30 percent of respondents became aware of processing technology through other farmers, 23.3 percent through advisory services, 10 percent of the respondents through contact farmers, cooperative society respectively and parents (20 percent). This buttresses the fact that most of the respondents had access to traditional processing technology.

Table 6: Marketing Outlets Available to the Cassava Farmers

Marketing Outlets

No or Respondents

Local Markets

(22) (73.3%)

Inter State Markets

(8) (26.7%)

International Markets

--------------------

Source Field Survey 2007

From the table 6, 73.3 percent of the respondents sold their products at the local markets, 26.7 percent of the respondents accessed the inter-state market, while none of the respondents accessed the international market. This implies that most of the respondents are yet to take the advantage or the benefits that can accrue from value addition on cassava because government has not put necessary machinery in place to allow to gain access to international market, and (ii) the level of awareness is low in this respect.

Table7: Result of regression analysis (on Gari as Source of value addition on cassava on cassava and revenue to the Respondents)

Dependent variable Revenue

Multiple R (Coefficient of multiple determination) 0.67202

R Square 0.45161

Adjusted R Square 0.33616

Standard Error 6.69466

Variable

B

SEB

BETA

T

SIGT

Age

.105301

.145002

.101942

.726

.4722

Education

.259512

.296531

.130662

.875

.3870

Sex

5.280787

2.471531

.321198

.2.137

.0391xx5%

Product

6.907618

3.885654

.2835781

1.778

.0835x10%

Provolum

7.981153

2.113767

.562098

3.776

.0005xx5%

Access

3.497335

3.837982

.196759

.911

.3679

Proctype

2.625434

4.063653

.127084

.646

.5221

Outlet

2.147510

2.729940

.103950

.787

.4364

Constant

-5.187082

9.014468

-575

.5684

The result shows that the product (gari) produced by the respondents is significant at 10%. This implies that gari is a major product produced by the respondents in the study area. It also has a positive relationship with the revenue (dependent variable) this can be explained by the fact that the respondents are more involved with transformation of cassava to various products particularly gari and would have gained expertise or experienced in the course of the process, thus, more revenue for the respondents because Gari is widely consumed and is one of the staple food consumed by the people in the study area and the price of Gari varies with its quality, this means the higher the quality of the products and acceptability let us use simpler expression all things being equal. That can be derived from the exercise. The result also indicates that provolum (i.e varieties of products produced from cassava is significant at 5%, that is, it has a positive relationship with the revenue, which implies that the more the number of varieties of product that can be produced from cassava, there will be an increase in the respondents revenue. Also from the table, the coefficient of multiple determinations (R2) is 0.67202 which indicate that 67.202% of the variability of dependent variable (Revenue) was jointly explained by the independent variables.

Table 8: result of Regression Analysis (on Fufu as source of value addition on cassava and revenue to the respondents)

Dependent Variable ------- Revenue

Multiple R (Coefficient of multiple determination) (R) 64350

R Square 41409

Adjusted R Square 29074

Standard Error 6.91987

Variable

B

SEB

BETA

T

SIGT

Age

.102385

.155546

.099119

.658

.5144

Education

.287325

.309894

.144665

.927

.3597

Sex

6.289332

2.571553

.382541

2.446

.0192xx5%

Product

-2.943663

4.063998

-168805

-724

.4733

Provolum

10.559342

2.995845

.743675

3.525

.0011xx5%

Access

1.826498

3.981631

.102758

.459

.6490

Proctype

3.556934

4.190779

.172173

.849

.4013

Outlet

2.728667

2.797522

.132081

.975

.3355

Constant

-181

8577

Field Survey 2007

The result that the sex of the respondents is significant at 5%, that is, there is a positive relationship between the sex of the respondents and revenue derived from value addition on cassava to Fufu. The explanation is the same as the one presented in relation to value addition on cassava to gari. It was equally obvious that the provolum (i.e the various of products produced from cassava) is significantly at 5% that is the more the number of varieties of products derivable from cassava, the more the farmers’ revenue. Also form the table the coefficient of multiple determinations (R2) is 0.64350, which indicates that 64.350% of the variability of dependents variable (Revenue) was jointly explained by independents variables.

Hypothesis

Ho1: There is no significant difference in the revenue accruable to cassava farmers with respect to access to processing technology.

Table 9: Analysis of Variance of Access to Processing Technology

Source of Variaation

Df

Sum of Sq

Mean Square

F. Ratio

Prob

Between people

14

893.4667

63.8190

Within People

15

1330.000

88.6667

Between Measures

1

10.8000

10.8000

0.1146

0.7400

Residual

14

1319.2000

94.2286

(3.52)

Total

29

2223.4667

76.6713

Grand Mean 22.4667

Ho2: There is no significance difference in the revenue to cassava farmer with respect to type of processing technology.

Table 10: Analysis of Variance of type of processing technology

Source of Variation

Df

Sum of Sq

Mean Square

F. Ratio

Prob

Between people

9

458.2500

50.9167

Within people

10

369.5000

36.9500

Between Measures

1

84.0500

84.0500

2.6500

.1380

Residual

9

285.4500

31.7167

(3.02)

Total

19

827.7500

43.5658

Grand Mean 22.7500

The result of analysis variance in table 9&10 is that F ratio and Chi-Square values respectively, shows that the observed values (0.11466, 0.1218 at 5% level of significance are less than the tabulated values (3.52 23.7), so the null hypothesis is accepted, that is there is no significant different in the revenue accruable to cassava farmers with respect to access to processing technology. This implies that the revenue accruable to the respondents is not influenced by access to processing technology because majority of the respondents did not have access to processing technology because (i) they do not have enough capital to acquire the technology (ii) they depend on traditional method of processing cassava to other products (iii) were not aware of the recent government initiatives to turn cassava to an export crops.

Ho2: There is no significance difference in the revenue accruable to cassava farmers with respect to type of processing technology.

The result of analysis of variance, that is the F ratio and Chi-Square values at 5% level of significance respectively, show that the observed values (2.2744, 2.6500) and the tabulated values (16.9, 3.02) so the null hypothesis is accepted, that is =, there is no significance difference in the revenue accruable to cassava farmers with respect to type of processing technology. This implies that the revenue accruable to the farmers is not influenced by type of processing technology, because most of the farmers or respondents used traditional which may affect the volume of the products derivable from cassava (value-addition) thus, reducing the income of the farmers.

Discussion and Conclusion

The study on the effects of Value addition on income of cassava farmers in Ijebu North Local Government of Ogun State revealed that those aged between 50-59 years represent 40 percent of the respondents, 56.7 percent of the respondents had no formal education and that most of the respondents were female, infact, they constitute 66.7 percent of the respondents, which imply that females are more into cassava production than the male in the study area. This is line with the finding of Ikpi and Hahn (1989) in conjunction with UNICEF/IITA survey of oyo state that distinct gender roles were found to be associated with the production, processing and marketing of cassava. ILO (1984) reported that the percentage of labour associated with each task involved in food production shows that women contribute seventy percent of the labour in food production and processing

The study also revealed that sixty percent of the respondents transformed their cassava products to Gari, 46.7 percent of the respondents had access to processing technology; while 53.3 percent did not have the opportunity.

The reason being that most of them depend on traditional processing method (66.7%). The study also revealed that there is no significance difference in the revenue accruable to cassava farmers with respect to access to processing technology. This is because; the respondents do not have enough income to access the technology. This was corroborated by Adeniyi et; al. (2005) that the low level income of poor farmers prevent them from meeting the capital requirement of improved technology. This was supported by Odebode (1999) that output of women using improved technology is higher than those using traditional processing technology, as a result, improved technology increased the income capacity of rural women and reduce the level of poverty.

The study also revealed that 73.3 percent of the respondents sold their products (gari & Fufu etc) at the local markets, 8 percent of the respondents accessed the inter-state market, while non of the respondents accessed the international market. The implications are (i) the cassava farmers are yet to take advantage of the benefits accruing form value addition on cassava, because government has not put necessary machinery in place to allow farmers to gain access to international market (ii) the level of awareness is low among farmers with respect to value addition on cassava and the benefits (revenue) that can be derived from such endeavours at the international market.

The result of the regression analysis indicate that Gari, Fufu are the major products produced by the respondents, they are significant at 5%, which imply that they have a positive relationship with revenue, the result of the regression analysis also indicated that the sex of the respondents is also significant at 5% and has a positive relationship with revenue derived from value addition on cassava. Equally, from the result of regression, the more the variety of products derived from cassava through value addition the higher the revenue of the respondents. All of these could be explained by the fact that marketing outlets for cassava products and indeed most food products from other sources are still largely unorganized and crude. The markets for locally consumed foodstuff (Gari, Lafun etc.) in Nigeria are highly localized in nature (OGSFDO-NFDPII a World Bank assisted Project). (ii) With regard to ecological zones in Nigeria, cassava products such as “Gari”, “Lafun”, “Fufu”/Akpu are widely consumed throughout the southwest. Women are prominent in small-scale processing of agricultural crops. Women play an important role in cassava production; processing and marketing, however, the level of their involvement vary with one ethnic group to another. In the southwest, women contribute about 50 percent to the total agricultural labour Adeniji et; al. (2005)

Value added processing of agricultural commodities make an important contribution to agricultural development and farm income, because processing of this commodities into new food products, industrial starch and livestock feeds enhanced the value of these commodities, which result to higher and more stable market prices and farm income for farm producers (farmer) Fuglie (1998).

The study also show that there is no significant difference in the revenue accruable to cassava farmers with respect to type of processing technology. This could be attributed to the fact that most of the farmers used traditional processing technology, which may affect the volume of the products derivable from cassava thorough value addition; this can result in reduction of farmer’s income. This was substantiated by Odebode (1999) that the output among women using improved processing technology is higher than those using traditional processing technology. The bags of Gari processed with the use of improved processing technology are more than the bags of Gari processed with the use of traditional technologies. Moreso, when the technology was crude, productivity was lowand vice-versa, the implication of the above observation is that improved technology will increase the income capacity of the rural women and reduce the level of poverty.

Recommendation

The experience gained from the study points to the fact that there is need for further diversification of cassava and its products in the study area, especially as chips which are basic requirements at the pharmaceutical, baking and brewing industries.

Effective marketing linkages should be made available between the farmers and the industries international markets that use cassava and its products so that the farmers will not have excess production without visible marketing outlets.

Awareness should be created on the value, uses and benefits of cassava and its products as jingles on radio, television and other rural communication media.

An industrial commodity organization could be formed that would raise consumer and industrial awareness of cassava’s attributes and use, and ensure a minimum level of quality of product and investment in the production and future of the industry.

Deliberate efforts to support the development of cassava processing protypes and identification of applicable and useful technologies and provision of incentives for local cassava farmers to fabricate and use them.

Greater involvement of the private sector and non-governmental organizations on the use of research and technology in cassava production, processing and marketing and in the development of infrastructural facilities in the study area.

Farmers should be encouraged to diversify their processing options to enhance rural household income.

The impact of extension services should be made more effective by government, so that cassava processing technology will be highly adopted by cassava farmers in the study area.

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