ASSESSMENT OF THE PROFITABILITY TRENDS OF CASSAVA PRODUCTION ENTERPRISES IN OSUN STATE, NIGERIA

The study was carried out to examine the trends in the profitability of cassava production enterprises between 2008 and 2010 in Osun State, Nigeria. A multi-stage sampling technique was used to randomly select 120 farmers from 60 communities in 6 LGAs in the 3 agricultural zones of the State. Structured interview schedule was used as instrument to collect primary data from respondents on their socio-economic characteristics, cost of production and revenue generated from sales of cassava roots and stem cuttings. Data collected was subjected to descriptive statistics, while profitability was computed using Gross Margin analysis. The result showed that majority (33.3%) of the farmers were between 41-50 years with mean age of 38 years, 56.7 percent were males with 75 percent married, while 43.3 percent had primary education. Majority (43.3%) had household sizes of between 7-9 members and 41.7 percent sourced their funds for production from personal savings. Cassava productions in the study area are profitable but with low gross margins. The Gross Margins for cassava production per hectare for the 3 years (2008-2010) were respectively N151,812, N148,492, and N198,400, with their respective cost benefit ratios as 2.56, 2.43, and 2.70.The ‘very severe’ constraints to cassava production in the study area are Lack of funds (credit), High transport cost and poor prices for products. The study recommended measures to increase root yield and scale of operation of farmers. To mitigate the constraints, the Government should provide micro credit at low interest rates as well as put in place a buy-back policy that would guarantee price stabilizatio