Entrepreneurial prospects of plantain processing into Dodo-Ikire in south-west Nigeria
Kaothar Idris-Adeniyi1, Akintunde Akintayo2, Aisha Salam3
1Osun State University, Osogbo, Department of Agricultural Extension and Rural Development, Nigeria
Entrepreneurship had always remained a viable alternative among Nigerian job seekers in the face of the ever-daunting labour market. This study carried out comparative economic analysis of plantain processing into Dodo-Ikire in Ayedaade and Irewole Local Government Areas of Osun State, Nigeria to establish its entrepreneurial prospects. Multi-stage sampling procedure was used to select a total of 120 plantain processors as the study sample. Relevant data collected using well-structured interview schedule were analysed with appropriate descriptive and inferential statistical tools. Results reveal that all the sampled plantain processors were female having mean ages of 41.92±14.67 and 39.47±13.81 years for Ayedade and Irewole L.G.As, respectively. The average household size of the plantain processors in both L.G.As was 5 members. Years of formal education and processing experience averaged 8.6±2.8 and 18.7±6.5 years for Ayedaade L.G.A but 10.9±6.0 and 12.4±4.3 years for Irewole L.G.A. Mean monthly income was found as ₦32,570.40±11,073.94 and ₦38,964.68±13,347.10 in Ayedaade and Irewole L.G.A, respectively. The average annual quantity of plantain processed into Dodo-Ikire was 456.37kg with a unit price of ₦1,060 in Ayedade L.G.A and 471.27kg with a unit price of ₦1,110 in Irewole L.G.A. The average total annual revenue realised from plantain processing was ₦483,752 in Ayedaade L.G.A and ₦523,109.7 in Irewole L.G.A. The average annual total variable cost in Ayedaade L.G.A was ₦304,383.6 and ₦299,109.75 in Irewole L.G.A. The gross margin and benefit cost ratio were therefore ₦179,368.4 and 1.58, respectively in Ayedaade L.G.A but ₦223,999.95 and 1.73 in Irewole L.G.A. The most severe problems associated with plantain processing common to the two sampled L.G.As were heat stress, lack of access to credit facilities and inadequate modern processing equipment. Multiple regression analysis revealed the factors determining profitability of plantain processing as household size (t= -2.089) and cost of plantain (t= -2.332) in Ayedaade L.G.A but household size (t=2.952), marketing outlet (t=6.040), cost of plantain (t=-2.419) and cost of oil (t= -1.779) in Irewole L.G.A all at p≤0.05. The study concluded that plantain processing into Dodo-Ikire has good entrepreneurial prospects and recommended that the prospects be harnessed to enable processors increase their scale and boost their profit.
Keywords: Benefit-cost ratio, Dodo-Ikire, plantain processing, Profitability
Contact Address: Kaothar Idris-Adeniyi, Osun State University, Osogbo, Department of Agricultural Extension and Rural Development, No 8 zone e halelluyah estate osogbo osun state Nigeria, +234 Osogbo, Nigeria, e-mail: kaothar.idris-adeniyiuniosun.edu.ng