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ANALYSIS OF SAVINGS AND INVESTMENT STRATEGIES AMONG CASSAVA PROCESSORS IN YEWA NORTH LOCAL GOVERNMENT AREA OF OGUN STATE

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CHAPTER ONE
INTRODUCTION

Background to the study

Cassava was introduced into Central Africa from South America in the 16th century by the early Portuguese Explorers (Ohadike, 2007). It was probably the incapacitated slaves who introduced the cassava crop into southern Nigeria as they returned to the country from South America. Cassava however, did not gain importance in the country until the end of the nineteenth century when processing techniques were introduced as many slaves returned home (Odoemenem and Otanwa, 2011). In Nigeria, cassava is grown in all the ecological zones; the crop is planted all year round depending on the availability of moisture (Odoemenem and Otanwa, 2011).

Cassava is an important staple food in several tropical African countries, especially in Nigeria where it plays a principal role in the food economy (Agwu and Anyaeche, 2009). Cassava has the ability to grow on marginal lands, especially in drought-prone conditions and in low-fertility acid soils, where cereals and other crops do not thrive (Gobeze et al., 2005 as cited in Obayelu, et al., 2013). Cassava roots can also be stored in the ground (while still intact on the growing plant) for up to 24 months or more, so harvest may be delayed until market, processing or other conditions are favourable (International Institute for Tropical Agriculture, 2009). This comparative advantage over other staples serves to encourage its cultivation especially by resource-poor farmers. According to the Food and Agricultural Organization Statistics (FAOSTAT, 2011), Nigeria is the world’s largest producer of cassava with about 37 million metric tonnes and it ranks second after yam in extent of production among the root and tuber crops of economic value in Nigeria.

Ogun, Ogun, and Cross River are the leading producers of cassava in Nigeria (Ministry of Agriculture and Natural Resources, 2013). Apart from the ecological support for cassava growth and production, Ogun State has mounted deliberate strategies such as distribution of improved cassava varieties to sustain its leading role in cassava production in the country (BMANR, 2003). Cassava is a very versatile crop with numerous uses and by-products. Each component of the plant can be valuable to its cultivator. The leaves may be consumed as a vegetable, or cooked as a soup ingredient or dried and fed to livestock as a protein feed supplement. The stem is used for plant propagation and grafting. The roots are typically processed for human and industrial consumption. Cassava is traditionally consumed by processing the fresh roots into garri, fufu, and flour (Adebayo et al., 2003a; Adebayo et al., 2003b). Data from the Collaborative Study of Cassava in Africa (COSCA) show that 80% of Nigerians in rural areas eat a cassava meal at least once weekly (Nweke et al., 2002).

 

Problem Statement

The problem of declining crop productivity in Nigeria is important (FACU, 1992; FDA, 1993 and 1995, as cited in Ukoha et al., 2010). The agricultural problem in Nigeria relates to the inefficiency with which farmers use resources on the farms (Bamidele et al., 2008). It also borders on how the various factors that explain farm efficiency could be determined through research so as to improve cassava production in the country (Bamidele et al., 2008). Farmers’ output must therefore be expanded with existing levels of conventional inputs and technology to meet the increasing demand for cassava.

Cassava farmers in Nigeria are small-holders characterized by very low level of productivity (Bamidele et al., 2008). These smallholder and traditional farmers who use rudimentary production techniques, with resultant low yields, cultivate most of this land. They are also constrained by many problems including poor access to markets, land and environmental degradation and inadequate research and extension services (Manyong et al., 2005).

Simonyan et al. (2010), as cited in Nandi et al. (2011) stated that Nigerians are poor and hungry despite efforts made by various governments in improving agricultural productivity and efficiency of the rural farmers who are the major stakeholders of agricultural production. Given the various government programmes such as the National Accelerated Food Production Programme (NAFPP), Operation Feed the Nation (OFN), the Agricultural Development Projects (ADPs), Cassava Multiplication Programme (CMP), and Root and Tuber Crop Expansion Program (RTEP), implemented over the years to raise farmers’ efficiency and productivity in cassava farming, productivity for cassava is still low. For example, the actual yield of cassava ranges between 8 and 15 tonnes per hectare, compared to a potential yield of 30 tonnes per hectare – a yield gap of 275 and 100 percent respectively (FAO, 2011 as cited in IITA, 2015). And also, given the increasing interest of more nations in buying cassava products from Nigeria, the prospects for enhanced foreign exchange is becoming high (Ogisi and Alimeke, 2013). It then becomes necessary to economically analyze the profitability and resource- use efficiency of cassava farmers. This study seeks to find answers to the following research questions:

  1. What are the socio-economic characteristics of cassava farmers in the study area?
  2. What are the costs and returns, savings and investment strategies for cassava farming in the study area?

iii.  What is the technical relationship between inputs and output in cassava farming in the study area?

  1. How efficiently are resources used by cassava farmers in the study area?
  2. What is the relationship between cassava farmers’ socio-economic characteristics and their output?

 

Objectives of the study

The main objective of this study is analysis of savings and investment strategies among cassava processors in Yewa North local government area of Ogun state, Nigeria. The specific objectives are to:

  1. describe the socio-economic characteristics of cassava farmers in the study area.
  2. estimate the costs and returns of cassava farming in the study area.

iii.  estimate the savings and investment strategies for cassava farming in the study area.

  1. determine the resource use efficiency in cassava farming in the study area.
  2. determine the relationship between cassava farmers’ socio-economic characteristics and their output.

vii. identify and describe the major constraints faced by cassava farmers in the study area.

 

 

Justification for the Study

Agricultural productivity, growth and resource-use efficiency are the core elements of sustainable crop production as inefficient use of inputs can endanger food availability and security (Udoh et al., 2006). It is clear that the rural sector consisting of farm families, offer great potential for employment generation for the teeming population. However, this potential will not be achieved if productivity and efficiency are not increasing within the rural sector. In achieving this within the rural sector, particularly among small-scale farmers, a good knowledge of the current efficiency or inefficiency inherent in the sector as well as factors responsible for this level of efficiency or inefficiency is required (Amos, 2009).

The results of this study will be of immense benefit to the farmers and other stakeholders in the agricultural industry, as it will help highlight those variables that could be better managed to improve the productivity of cassava farming. The results of this study will also guide policy makers in making policies for the improvement of the welfare of cassava farmers, which will give room for the expansion of cassava production. It will also provide relevant data for governments to address problems relating to cassava production in Ogun State and the country as a whole. The results will also elicit interest by students who will carry out further research on cassava production.

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