Profitability of Investment in Plantain Value Chain in Osun State, Nigeria

Oke Joel Taiwo Oluseye; Ogunleye Ayodeji Sunday; Kehinde Ayodeji Damilola

doi:doi:10.11648/j.eeb.20190402.13

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Profitability of Investment in Plantain Value Chain in Osun State, Nigeria

Oke Joel Taiwo Oluseye, Ogunleye Ayodeji Sunday, Kehinde Ayodeji Damilola

Published in Ecology and Evolutionary Biology (Volume 4, Issue 2)

Received: 29 January 2019 Accepted: 8 March 2019 Published: 27 September 2019

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Abstract

Profit is the driving force for any enterprises to thrive well, because it encourages more investment into an enterprise. One of the major barriers to investing in plantain value chain is inadequate information on return to investment. Thus, this paper investigated profitability of investors along plantain value chain in Osun state. A multistage sampling procedure was used to elicit information from 100 respondents for the study. Data were analysed using descriptive analysis, budgetary analysis, and multiple regression analysis. Descriptive statistics reveal that average age was 52.2 (±11.19) years for plantain farmers, 41.8 (±10.78) years for processors and marketers 33.42 (±11.99). While, average farming experience was 26.9 (±10.88) years for plantain farmers, 12.47 (±10.78) years for processors and marketers 5.84 (±19.12). About 6.7% farmers, 15.6% processors and 13.2% marketers had access to credit facilities. The budgetary analysis showed that benefit-cost ratios were $1.38, $1.30 and $1.19 for the farmers, processors and marketers, respectively. Multiple regression estimates revealed that insecticide used (p<0.1) and numbers of plantain harvested (p<0.01) significantly influenced the profitability of the plantain farmers, while age (p<0.1), level of formal education (p<0.05), amount invested into the business (p<0.01) and household size (p<0.05) significantly influenced the profitability of the plantain marketers. Only household size (p<0.01) significantly influenced the profitability of the plantain processor. In accordance with the findings of the study, we therefore recommend that subsidized cost of inputs and better access to credit among the investors along the value chain would increase the level of return to the investment.

Published in	Ecology and Evolutionary Biology (Volume 4, Issue 2)
DOI	10.11648/j.eeb.20190402.13
Page(s)	23-27
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Profitability, Plantain, Value Chain, Investment

References

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[4]	FAO, 2012: Commodity data, Country rankings. http://mongabay.com/commodities/data/category/1-Production/1-Crops/489 plantains/51-
[5]	Adejoro, M. A. Odubanjo, A. O. and Fagbola, B. O. (2010) Research Focus on Banana and Plantain (Musa spp.): Nigerian Perspectives Proc. IC on Banana & Plantain in Africa, Acta Hort. 879, ISHS 2010.
[6]	Idachaba, F. S. (1995). Food Policy in Nigeria towards a framework. Anal. Agric. Res. Bull., 77 (1): 161-166.
[7]	Sanni, A. I, Ogbonna, D. N. 1991. The production of owoh-A Nigerian fermented seasoning agent from cotton seed (Gossypium hirsitiumL). Food Microbiol. 8: 223-229.
[8]	Phillip, B, Shittu, A. M., Aiyelaagbe, I. O. O. and Adedokun, T. 2009. Economic potentials of plantain and fluted pumpkin intercropping as a poverty reduction strategy in South-western Nigeria. World J. Agric. Sci. 5 (5): 525-534.
[9]	PIND, 2011. A report on Palm Oil Value Chain Analysis in the Niger Delta, Abuja: Foundation for Partnership Initiatives in the Niger Delta (PIND).
[10]	Ferris, R. S. B. 1997. “Improving Storage Life of Plantain and Banana”. Research guide 62, IITA, Ibadan. Pp 8-12.
[11]	Tijani, I. A., Omonona, B. T., Ashaolu, O. F., and Bamiro, O. M. 2009. Economic Analysis of Plantain Production in Irewole Local Government Area, Osun state, Nigeria. Journal Advances in Natural and Applied Sciences. pp. 183-187.
[12]	Iyabo, B. A., Omobowale, A. O., Sulaiman, A. Y. and Kemisola, O. A. 2013. Plantain Value Chain Mapping in Southwestern Nigeria Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855.4 (16) (Online) www.iiste.org.
[13]	Anamayi, S. E., Anamayi, R M., Sulieman, R. A. and Egbunu, J. O. 2010. Cost and Return Analysis for Small Scale Cane rat Production in Osun State, Nigeria. Proceedings of 11^th Annual National Conference of National Association of Agricultural Economics held at the Federal University of Technology, Minna Niger State, Nigeria 30^th November- 3^rd Decenmber.
[14]	Olasunkanmi, J. B., Omitoyin, B. O. and Ipinmoroti, M. O. 2012. Social structure of fish farmers Osun State, South-Western Nigeria. Biological and Environmental Sciences Journal for the Tropics 9 (1).
[15]	ICAP Group S. A., 2006. Financial Ratios Explanation, S. l.: ICAP Group S. A.
[16]	Egbodion, J. and Ahmadu, J. 2015. Production Cost Efficiency and Profitability of Abakaliki Rice in Ihialia Local Government Area of Anambra State, Nigeria. J. Appl. Sci. Environ. Manage. 19 (2) 327–333.

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Oke Joel Taiwo Oluseye, Ogunleye Ayodeji Sunday, Kehinde Ayodeji Damilola. (2019). Profitability of Investment in Plantain Value Chain in Osun State, Nigeria. Ecology and Evolutionary Biology, 4(2), 23-27. https://doi.org/10.11648/j.eeb.20190402.13

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ACS Style

Oke Joel Taiwo Oluseye; Ogunleye Ayodeji Sunday; Kehinde Ayodeji Damilola. Profitability of Investment in Plantain Value Chain in Osun State, Nigeria. Ecol. Evol. Biol. 2019, 4(2), 23-27. doi: 10.11648/j.eeb.20190402.13

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AMA Style

Oke Joel Taiwo Oluseye, Ogunleye Ayodeji Sunday, Kehinde Ayodeji Damilola. Profitability of Investment in Plantain Value Chain in Osun State, Nigeria. Ecol Evol Biol. 2019;4(2):23-27. doi: 10.11648/j.eeb.20190402.13

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@article{10.11648/j.eeb.20190402.13,
  author = {Oke Joel Taiwo Oluseye and Ogunleye Ayodeji Sunday and Kehinde Ayodeji Damilola},
  title = {Profitability of Investment in Plantain Value Chain in Osun State, Nigeria},
  journal = {Ecology and Evolutionary Biology},
  volume = {4},
  number = {2},
  pages = {23-27},
  doi = {10.11648/j.eeb.20190402.13},
  url = {https://doi.org/10.11648/j.eeb.20190402.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eeb.20190402.13},
  abstract = {Profit is the driving force for any enterprises to thrive well, because it encourages more investment into an enterprise. One of the major barriers to investing in plantain value chain is inadequate information on return to investment. Thus, this paper investigated profitability of investors along plantain value chain in Osun state. A multistage sampling procedure was used to elicit information from 100 respondents for the study. Data were analysed using descriptive analysis, budgetary analysis, and multiple regression analysis. Descriptive statistics reveal that average age was 52.2 (±11.19) years for plantain farmers, 41.8 (±10.78) years for processors and marketers 33.42 (±11.99). While, average farming experience was 26.9 (±10.88) years for plantain farmers, 12.47 (±10.78) years for processors and marketers 5.84 (±19.12). About 6.7% farmers, 15.6% processors and 13.2% marketers had access to credit facilities. The budgetary analysis showed that benefit-cost ratios were $1.38, $1.30 and $1.19 for the farmers, processors and marketers, respectively. Multiple regression estimates revealed that insecticide used (p<0.1) and numbers of plantain harvested (p<0.01) significantly influenced the profitability of the plantain farmers, while age (p<0.1), level of formal education (p<0.05), amount invested into the business (p<0.01) and household size (p<0.05) significantly influenced the profitability of the plantain marketers. Only household size (p<0.01) significantly influenced the profitability of the plantain processor. In accordance with the findings of the study, we therefore recommend that subsidized cost of inputs and better access to credit among the investors along the value chain would increase the level of return to the investment.},
 year = {2019}
}

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TY - JOUR
T1 - Profitability of Investment in Plantain Value Chain in Osun State, Nigeria
AU - Oke Joel Taiwo Oluseye
AU - Ogunleye Ayodeji Sunday
AU - Kehinde Ayodeji Damilola
Y1 - 2019/09/27
PY - 2019
N1 - https://doi.org/10.11648/j.eeb.20190402.13
DO - 10.11648/j.eeb.20190402.13
T2 - Ecology and Evolutionary Biology
JF - Ecology and Evolutionary Biology
JO - Ecology and Evolutionary Biology
SP - 23
EP - 27
PB - Science Publishing Group
SN - 2575-3762
UR - https://doi.org/10.11648/j.eeb.20190402.13
AB - Profit is the driving force for any enterprises to thrive well, because it encourages more investment into an enterprise. One of the major barriers to investing in plantain value chain is inadequate information on return to investment. Thus, this paper investigated profitability of investors along plantain value chain in Osun state. A multistage sampling procedure was used to elicit information from 100 respondents for the study. Data were analysed using descriptive analysis, budgetary analysis, and multiple regression analysis. Descriptive statistics reveal that average age was 52.2 (±11.19) years for plantain farmers, 41.8 (±10.78) years for processors and marketers 33.42 (±11.99). While, average farming experience was 26.9 (±10.88) years for plantain farmers, 12.47 (±10.78) years for processors and marketers 5.84 (±19.12). About 6.7% farmers, 15.6% processors and 13.2% marketers had access to credit facilities. The budgetary analysis showed that benefit-cost ratios were $1.38, $1.30 and $1.19 for the farmers, processors and marketers, respectively. Multiple regression estimates revealed that insecticide used (p<0.1) and numbers of plantain harvested (p<0.01) significantly influenced the profitability of the plantain farmers, while age (p<0.1), level of formal education (p<0.05), amount invested into the business (p<0.01) and household size (p<0.05) significantly influenced the profitability of the plantain marketers. Only household size (p<0.01) significantly influenced the profitability of the plantain processor. In accordance with the findings of the study, we therefore recommend that subsidized cost of inputs and better access to credit among the investors along the value chain would increase the level of return to the investment.
VL - 4
IS - 2
ER -

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Author Information

Oke Joel Taiwo Oluseye

Department of Agricultural Economics, Faculty of Agriculture, Obafemi Awolowo University, Ile Ife, Nigeria
Ogunleye Ayodeji Sunday

Department of Agricultural Economics, Faculty of Agriculture, Obafemi Awolowo University, Ile Ife, Nigeria
Kehinde Ayodeji Damilola

Department of Agricultural Economics, Faculty of Agriculture, Obafemi Awolowo University, Ile Ife, Nigeria

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APA Style

Oke Joel Taiwo Oluseye, Ogunleye Ayodeji Sunday, Kehinde Ayodeji Damilola. (2019). Profitability of Investment in Plantain Value Chain in Osun State, Nigeria. Ecology and Evolutionary Biology, 4(2), 23-27. https://doi.org/10.11648/j.eeb.20190402.13

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ACS Style

Oke Joel Taiwo Oluseye; Ogunleye Ayodeji Sunday; Kehinde Ayodeji Damilola. Profitability of Investment in Plantain Value Chain in Osun State, Nigeria. Ecol. Evol. Biol. 2019, 4(2), 23-27. doi: 10.11648/j.eeb.20190402.13

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AMA Style

Oke Joel Taiwo Oluseye, Ogunleye Ayodeji Sunday, Kehinde Ayodeji Damilola. Profitability of Investment in Plantain Value Chain in Osun State, Nigeria. Ecol Evol Biol. 2019;4(2):23-27. doi: 10.11648/j.eeb.20190402.13

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@article{10.11648/j.eeb.20190402.13,
  author = {Oke Joel Taiwo Oluseye and Ogunleye Ayodeji Sunday and Kehinde Ayodeji Damilola},
  title = {Profitability of Investment in Plantain Value Chain in Osun State, Nigeria},
  journal = {Ecology and Evolutionary Biology},
  volume = {4},
  number = {2},
  pages = {23-27},
  doi = {10.11648/j.eeb.20190402.13},
  url = {https://doi.org/10.11648/j.eeb.20190402.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eeb.20190402.13},
  abstract = {Profit is the driving force for any enterprises to thrive well, because it encourages more investment into an enterprise. One of the major barriers to investing in plantain value chain is inadequate information on return to investment. Thus, this paper investigated profitability of investors along plantain value chain in Osun state. A multistage sampling procedure was used to elicit information from 100 respondents for the study. Data were analysed using descriptive analysis, budgetary analysis, and multiple regression analysis. Descriptive statistics reveal that average age was 52.2 (±11.19) years for plantain farmers, 41.8 (±10.78) years for processors and marketers 33.42 (±11.99). While, average farming experience was 26.9 (±10.88) years for plantain farmers, 12.47 (±10.78) years for processors and marketers 5.84 (±19.12). About 6.7% farmers, 15.6% processors and 13.2% marketers had access to credit facilities. The budgetary analysis showed that benefit-cost ratios were $1.38, $1.30 and $1.19 for the farmers, processors and marketers, respectively. Multiple regression estimates revealed that insecticide used (p<0.1) and numbers of plantain harvested (p<0.01) significantly influenced the profitability of the plantain farmers, while age (p<0.1), level of formal education (p<0.05), amount invested into the business (p<0.01) and household size (p<0.05) significantly influenced the profitability of the plantain marketers. Only household size (p<0.01) significantly influenced the profitability of the plantain processor. In accordance with the findings of the study, we therefore recommend that subsidized cost of inputs and better access to credit among the investors along the value chain would increase the level of return to the investment.},
 year = {2019}
}

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