Volume 4, Issue 2, June 2019, Page: 23-27
Profitability of Investment in Plantain Value Chain in Osun State, Nigeria
Oke Joel Taiwo Oluseye, Department of Agricultural Economics, Faculty of Agriculture, Obafemi Awolowo University, Ile Ife, Nigeria
Ogunleye Ayodeji Sunday, Department of Agricultural Economics, Faculty of Agriculture, Obafemi Awolowo University, Ile Ife, Nigeria
Kehinde Ayodeji Damilola, Department of Agricultural Economics, Faculty of Agriculture, Obafemi Awolowo University, Ile Ife, Nigeria
Received: Jan. 29, 2019;       Accepted: Mar. 8, 2019;       Published: Sep. 27, 2019
DOI: 10.11648/j.eeb.20190402.13      View  88      Downloads  12
Abstract
Profit is the driving force for any enterprises to thrive well, because it encourages more investment into an enterprise. One of the major barriers to investing in plantain value chain is inadequate information on return to investment. Thus, this paper investigated profitability of investors along plantain value chain in Osun state. A multistage sampling procedure was used to elicit information from 100 respondents for the study. Data were analysed using descriptive analysis, budgetary analysis, and multiple regression analysis. Descriptive statistics reveal that average age was 52.2 (±11.19) years for plantain farmers, 41.8 (±10.78) years for processors and marketers 33.42 (±11.99). While, average farming experience was 26.9 (±10.88) years for plantain farmers, 12.47 (±10.78) years for processors and marketers 5.84 (±19.12). About 6.7% farmers, 15.6% processors and 13.2% marketers had access to credit facilities. The budgetary analysis showed that benefit-cost ratios were $1.38, $1.30 and $1.19 for the farmers, processors and marketers, respectively. Multiple regression estimates revealed that insecticide used (p<0.1) and numbers of plantain harvested (p<0.01) significantly influenced the profitability of the plantain farmers, while age (p<0.1), level of formal education (p<0.05), amount invested into the business (p<0.01) and household size (p<0.05) significantly influenced the profitability of the plantain marketers. Only household size (p<0.01) significantly influenced the profitability of the plantain processor. In accordance with the findings of the study, we therefore recommend that subsidized cost of inputs and better access to credit among the investors along the value chain would increase the level of return to the investment.
Keywords
Profitability, Plantain, Value Chain, Investment
To cite this article
Oke Joel Taiwo Oluseye, Ogunleye Ayodeji Sunday, Kehinde Ayodeji Damilola, Profitability of Investment in Plantain Value Chain in Osun State, Nigeria, Ecology and Evolutionary Biology. Vol. 4, No. 2, 2019, pp. 23-27. doi: 10.11648/j.eeb.20190402.13
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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