Economic Analysis of Costs and Returns of Vitamin A Cassava Production in Anambra State, Nigeria, West Africa
Abstract
The study investigated the costs and returns of vitamin A cassava production in Anambra State, Nigeria. Multi-stage and simple random techniques were adopted in selecting one hundred and thirty eight respondents for the study. Data were collected using well structured questionnaire and analysed using descriptive statistics, multiple regression, budgetary technique and benefit cost ratio. The specific objectives were to ascertain costs and returns on vitamin A cassava based production; ascertain influence production costs have on the financial value of the crop’soutput and to identify the constraints to production of the crop. Findings on costs and returns showed that gross margin, net farm income and net return on investment were ₦41,128.00, ₦41,097.00 and 1.6 respectively. This implies that for every 100 kobo invested in the production, 160% was gained. The result of Benefit Cost Ratio is an indicator that the venture is a profitable business. The findings also revealed that out of the five predictors included in the model, three namely cost of planting material, cost of labour and cost of renting land statistically and significantly influenced production returns earned by the farmers. High cost of labour, poor access to yellow stem, poor access to capital, poor pricing of yellow cassava tubers and poor transportation infrastructure were perceived as the most serious constraints encountered by vitamin A cassava production. Farmers should be encourage to form cooperative in order to enable them access or purchase tractors which should be made available and affordable to farmers to ease the cost of labour, government and other stakeholders should be encourage to multiply vitamin A cassava stems and investors should be encouraged to set up industries that would enter into contracts with vitamin A cassava farmers in the State in order to buy off their produce and process them into value added products were recommended.
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Introduction
Cassava (Manihot esculenta) is a major staple food, a major source of energy in the diet of many Nigerians and can easily adapt to wide range of climatic and soil conditions (Ekpunobi, Nwigwe and Nkamigbo,2020). Nigeria is currently the largest producer of cassava in the world and the largest cassava market in Africa. (Ijigbade, Fatuase and Omisope, 2014 and Epkpunobi et al, 2020).
Nigeria produces approximately 45 million tonnes of cassava annually and the system is highly dominated by small-scale farmers’ holding, cultivating average of 0.5 hectares. Cassava which is the major food consumed by Nigerians, though inexpensive and good source of carbohydrates has low protein content and lacks vitamin A. As a result, Nigerians who are restricted to the consumption of cassava based diet could be at risk of being exposed to having diseases associated with vitamin A deficiency (VAD) (Eguonu, 2014, Eze, Nwibo, 2014 and Ekpunobi, 2020). According to (Bouis, Hoty, McClafferty, Meenakshi and Pfeiffer (2011), the deficiency of this all important micronutrient – vitamin A, is a leading cause of morbidity and mortality, especially in young children, pregnant and lactating mothers. Vitamin A deficiency has continued to be a significant public health problem in Nigeria despite improving diets as a result of rising incomes and administration of vitamin A capsules over the years (Ilona, Bouis, Moursi, Palenberg and Oparinde, 2017). To address the challenges associated with vitamin A deficiency and its severity, Nigerian government embarked on supplementation program with vitamin A for children within the ages of 6 months to 5 years during immunization and went ahead to mandate the fortification of some food item like wheat flour, sugar, vegetable oil with Vitamin A since year 2000 (Adeola, Ogunleye and Bolarinwa, 2017). However, the recurring transportation and administration cost associated with these efforts seems unsustainable especially for those in rural areas due to prevalence of poverty5. It is estimated that Nigeria losses over 1.5 billion dollars to vitamin and mineral deficiencies 8. This is quite enormous for a developing country like Nigeria that is still grappling with poverty and unemployment. Animal foods that are good sources of Vitamin A are not affordable by the poor communities thus leaving food of plant origin as important source of pro-vitamin A in developing countries (World Bank, 2018). Vitamin A cassava has also been reported to be high yielding, resistant to major pests and diseases, and have shown delay in the onset of post-harvest deterioration (Tumuhimbise, Namtebi, Turyashemerwa and Muyong, 2013). However, variance in the colour of vitamin A cassava to that of other cassava varieties, which are traditionally white, raises question on whether the crop would generally be accepted by both the farmers and consumers in the State. Cases have been reported in the past where farmers and consumers rejected improved variety of a crop like maize, due to variance in colour (Ekpa and Linneman, 2018). This is one major issue that would determine the prospects of vitamin A production of the crop and its sustainability, in the State. Even though study carried out by (Nzeh and Ugwu,2014) on the cost and return on cassava production showed that cassava production and marketing is profitable, the researcher however observed that there is paucity of research study on the cost and return on vitamin A cassava production in the State. Hence, with the changing social characteristics of cassava farmers; changes in economic decisions they make; changes in economic realities; the costs and returns on vitamin A cassava production in Anambra State is called to question. As vitamin A cassava is increasingly being pushed to get to more smallholder farmers in Nigeria, it became important to ascertain the costs and returns of its production, identify the influence of production cost on financial value of the output and identify constraints to production of the crop.
Conclusion
The result of costs and returns of vitamin A cassava production from one plot (100 x 50Ft) revealed that gross margin, net farm income and net return on investment were ₦41,128.00, ₦41,097.00 and 1.6 respectively. This implies that for every 100 kobo invested in the production, 160% was gained. The cost of labour (35.5%) and fertilizer (28.1%) were the major cost in the production of vitamin A cassava. Multiple regression analysis revealed that cost of planting material, cost of labour and cost of renting land statistically and significantly determined net farm income earned by the farmers while cost of fertilizer and cost of pest were not significant. . High cost of labour (62.3%), poor access to vitamin A cassava stem (54.3%), poor access to capital (50.7%), poor pricing of vitamin A cassava tubers (43.5%) and poor transportation infrastructure 43.5%) were perceived as the most serious constraints to vitamin A cassava production in the study area. It was recommended that farmers should be encouraged to form cooperatives in order to enable them access or purchase tractors which should be made available and affordable to farmers to ease the cost of labour, government and other stakeholders should be encouraged to multiply yellow cassava stems and investors should be encouraged to set up industries that would enter into contracts with vitamin A cassava farmers in the State in order to buy off their produce and process them into value added products.
