Profitability Analysis of Yam Production in Ika South Local Government Area of Delta State, Nigeria

Abstract

The study evaluates the profitability of yam production in Ika South Local Government Area of Delta State, Nigeria. The specific objectives were to: ascertain the socio-economic characteristics of yam producers; determine the productivity of yam; determine the profitability of yam production; and identify the major constraints to the production of yam. Twenty four farmers were randomly selected from each of the five clans randomly selected, thus bringing the sample size to 120. Well-structured and validated questionnaires were administered to obtain information from the farmers. Descriptive statistics was used to analyze the productivity of yam output. Gross margin analysis was used to determine the profitability of yam production. The t-test results showed that the profit level in the production of yam was significantly greater than zero. Lack of credit, inadequate preservation facilities, inadequate or low patronage by wholesalers and low price of yam are the major constraints facing yam producers in the study area. From the findings, it was recommended that Government should ease transportation and provide storage facilities so as to improve the welfare of both sellers and buyers.

Keywords: Profitability, production, gross margin, constraint, Delta State