Economic Analysis of Yam Processing in Oyo State

Abstract

The study examined the economics analysis of yam processing in Oyo state. Multi-stage sampling technique was used to select the respondents for the study. Primary data were collected with the aid of questionnaire and analyzed using descriptive statistics, profitability and budgetary analysis. The result of the study shows that majority of the respondents were female(70.8%) within the age bracket of 41-60(52.5%).Most of them are married(90%)with primary education(34.2%) and household size of 6-12(74.2%).The study identified two yam products  and the various steps in the production of the two products.The profitability analysis shows a net return of  6000 naira per 250kg of yam processed into yam flour which is the major product of yam processing in the area.0.38 rate of return was realized from 250kg bag of yam which implies 38k returns on one naira spent investment. A gross ratio of 0.73 was also recorded and this implies the business is profitable. Factors such as climate change, inadequate credit facilities, poor road network among others are major factors that hinder the processing activities in the area. The study therefore recommends that government should construct feeder roads, provide processing facilities and proper storage facilities to the processors to improve their production and enhance food security.

Keywords: yam processing, profitability, yam products, gross ratio