ECONOMIC ANALYSIS OF YAM PROCESSING INTO YAM FLOUR IN SAKI AGRO ECOLOGICAL ZONE OF OYO STATE, NIGERIA
Keywords:Yam processing, Yam flour, Profitability, technical efficiency
The study examined the economic analysis of yam processing into yam flour in Saki Agro ecological Zone of Oyo State. It specifically described the profitability of yam processing; examined the technical efficiency of yam processors and determined the effect of the socio-economic characteristics on technical efficiency. Data were collected with the aid of structured questionnaire and analyzed using descriptive statistics, profitability and budgetary analysis as well as stochastic frontier model and Garrett scale. The study reveals that majority of the respondents were female (88%) with a mean age of 47. The result shows that the rate of return on investment was 12 percent. The mean technical efficiency of the processors was 85% indicating that the yam processors were relatively efficient in allocating their limited resources. Some observable variables relating to socioeconomic characteristics such as processing experience and sex of the respondents significantly explains the variation in technical efficiency. Factors such as high cost of yam tubers, poor weather condition and inadequate processing facilities are the major factors that hinder the processing activities in the study area. The study therefore recommends that government policies should be made to improve the provision of inputs such as yam tubers and capital equipment at affordable price.
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