Profitability Analysis of Sugercane (Saccharum Officinarum) Products in Numan Local Government Area Adamawa State, Nigeria
The study was conducted to analyze profitability of sugarcane production in questionnaire survey where 120 farmers were randomly selected. Data collected were analyzed using budgetary technique. Analysis of the results indicated revealed that the cost of production of sugarcane per hectare which consist of both the total variable cost (TVC) and total fixed cost (TFC) per hectare were and N 20,959.accounting for 85.48% and 14.52% of the total cost of production. The gross farm income was N38, 625.83 while the NFI was Nl7,666.83/ha. Similarly the return/naira invested in the production of sugarcane by the out-grower farmers was N0.84 implying a positive return of 84 Kobo on every N1 invested, showing that production is profitable in the short run. Recommendations were however made in the study.
Keywords: Sugar cane, out grower, scheme, budgetary technique