ECONOMIC EVALUATION OF ENTERPRISES SUPPORTED BY AGRO PROCESSING, PRODUCTIVITY ENHANCEMENT AND LIVELIHOOD IMPROVEMENT SUPPORT PROJECT IN CROSS RIVER STATE, NIGERIA
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Abstract
The study carried out an economic evaluation of rice, cocoa, and broiler production enterprises supported by the World Bank-Assisted Agro Processing, Productivity Enhancement and Livelihood Improvement Support (APPEALS) project in Cross River State, Nigeria’’. Using a sample of 391 cooperatives, data were collected through questionnaires, records, and focus group discussions. Results from the study showed that, APPEALS-supported enterprises differ in scale, age and earnings, with cocoa most established and profitable, rice more labor-intensive but lower earning, and broilers younger, moderately profitable and better educated managers. Among the
average total cost incurred by these enterprises per hectare, labour cost accounted for 64.70 percent of the average total costs for rice. Similarly, for a batch of 500 broilers enterprises, the cost of feed accounted for 63.9 percent of the average total costs while for cocoa enterprises, rent on farm accounted for 70.46 percent of the average total costs. The profit margin percentage of 25.3%, 26.9% and 38.5% was obtained for rice, broiler and cocoa enterprises respectively, while return on investment of 0.34, 0.63 and 0.37 for rice, cocoa and broilers were realized. This implies that for every one naira invested across the production of these three commodities, benefits of ₦ 0.34, ₦0.63 and ₦ 0.37 were achieved confirming the profitability of APPEALS-supported agribusinesses. The study recommended policy to promote cooperative development and clusterbased support for cocoa and rice, drawing on the broiler model to improve market access, input sourcing, and collective bargaining
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