EFFECT OF PRODUCER INVESTMENT ON THE PERFORMANCE OF VALUE ADDED CASSAVA PRODUCTION IN SOUTH-EAST NIGERIA

  • B.A. Ahamefule Michael Okpara University of Agriculture Umudike, Nigeria
Keywords: Producer investment, performance, value added, and cassava production

Abstract

This study analyzed the effect of producer investment on performance of value added cassava production in
South East Nigeria. Data used for the study were obtained from 180 respondents using multi-stage sampling
technique. The data were analyzed using descriptive statistics, Pearson's correlation analysis and simple
regression technique. Findings showed that the initial capital invested in the enterprises averaged ₦107,635.64
(gari), ₦99,623.48 (fufu), and ₦71,159.39 (abacha) and sourced mostly from personal savings. The gross
margin was ₦326814.53, ₦353978.00 and ₦267791.69 for gari, fufu and abacha enterprises respectively, while
the BCR was 2.17:1.00, 1.77:1.00 and 2.44:1.00 respectively for the enterprises. The correlation analysis showed
that there was a strong relationship between capital invested and performance. The regression analysis showed
that the amount of capital invested positively influenced the level of profit. The study therefore recommended the
provision of credit support to investors in cassava processing not only as agricultural loans but as part of small and
medium scale enterprises (SMEs) development grant to expand their capacity, improve scale of operation and
income. The amount of credit used by the processors in most of the cases had significant effects on their
performance. Therefore the relevance of credit in strengthening the processors is important.

Published
2020-08-30

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eISSN: 0300-368X