COMPARATIVE ANALYSIS OF THE PROFITABILITY OF CASSAVA PROCESSING ENTERPRISES IN ODUKPANI LOCAL GOVERNMENT AREA, CROSS RIVER STATE, NIGERIA
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Abstract
This study, titled Comparative Analysis of the Profitability of Cassava Processing Enterprises in Odukpani Local Government Area of Cross River State, Nigeria, specifically examined the profitability and constraints of cassava processing enterprises that focused on garri, fufu, and
starch products. The specific objectives included determined processing costs and returns, estimated gross margins, compared profitability by scale (micro and small), and identified socioeconomic factors that influenced profit levels. Data were collected from 133 processors using a
multi-stage sampling technique and analysed using descriptive statistics, budgetary analysis, a mean difference model, and multiple linear regression. Results showed that cassava processing is profitable, garri recorded the highest gross margin (₦9, 349.5/50 kg), followed by fufu
(₦6,689.7/50 kg) and starch (₦4,087.4/50 kg). Micro-scale processors (0–9 employees) were significantly more profitable (mean gross margin: ₦30,168.10) than small-scale processors (₦19,091.18) at a 5% significance level. Socio-economic factors such as income (10%), educational level (1%), marital status (5%), and processing experience (10%), significantly influenced profitability. However, most processors faced challenges that included expansion constraints (72.2%), competition (69.2%), and limited access to grants (68.4%), while over 80% required financial support and modern equipment to enhance productivity. The study concluded that targeted interventions in finance, capacity building, and mechanization are critical to improving efficiency, reducing costs, and enhancing profitability in the cassava processing sector of Odukpani. This study contributed to the existing literature by providing empirical evidence that micro-scale cassava processing enterprises in Odukpani Local Government Area generate significantly higher gross margins than small-scale enterprises.
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