Profitability of Soyabean Production by Small Holder Farmers in Nigeria: A Guide for Sustainable Food Security.

Abstract

The study assessed the costs and returns in soyabean production among small scale farmers in Central Agricultural Zone of Nigeria. The multi-stage sampling procedure was used to select 485 soyabean farmers. Three States, namely: Benue, Niger and Plateau, were purposively selected out of the eight States of the Zone, because of their high concentration of soyabean production. Respondents were then randomly selected from each of the States, based on the proportion of each State’s soyabean farming population at 0.2 percent. Thus, 240, 125 and 120 respondents were selected from Benue, Niger and Plateau States, respectively. Data were collected from the respondents through administration of well structured questionnaire. The data collected were analyzed using simple descriptive statistics, gross margin analysis, t-test of mean difference and profitability test. Results showed that Benue State had the highest gross margin of N77,478.86/ha  while Plateau State had the least of N10,966.98/ha. The mean gross margin for the Zone was found to be N35635.67/ha. Result of profitability test revealed that soyabean production in the Zone is profitable (t= 52.504). Major production constraints identified include: inadequate capital, soil intertility, poor extension services, high cost of inputs, inadequate marketing/storage facilities and high cost of transportation. It is recommended that government should create enabling environment for marketing of soyabean, which should include provision of market infrastructure such as good rural access roads and good storage facilities, to enable the farmers sell at the time they want and at a good price. This would lead to higher incomes and consequently motivate them to sustain production of the crop, not only as a food and cash crop but also as a vital contributor to sustainable food security of the country.

Keywords: Sustainable food security, soyabean production, constraints soyabean production, constraints, gross margin, profitability, sustainable food security, profitability test.