Profitability Analysis of Cassava Production in Three Local Government Areas of Taraba State, Nigeria
Zakari, H.U., Abubakar, R.U., Lawan, U.A., Bello, U.D., and Mohammed, U.S
Department of Agricultural Extension and Management
College of Agriculture, P.M.B 1025 Jalingo Taraba State, Nigeria
Email: zakarihu@gmail.com
ABSTRACT
The
profitability analysis of cassava production in three local government areas of
Taraba State was investigated to identify the economics of cassava production
in three local government areas of Taraba State. The specific objective was to
examine the production function, gross margin, total return in different farm
sizes. Contributions of primary and secondary data were used for the
investigation. Simple descriptive statistics, production analysis and farm
budget techniques were used for the analysis. The results showed that the
average cost of production was N36,864.48
per hectare, while the gross return per hectare was N1,652,677.2. Therefore, the gross margin per hectare was N1, 615,812.72. Further analysis showed
that for every naira invested in cassava production, N2.48 was realized as profit. Also, a test of hypothesis on
profitability showed that cassava production was profitable in the study area,
it was concluded that cassava production in the study area is economical. Also,
it is recommended that the government should encourage the production of
cassava in the area of the study.
Keywords: Profitability Analysis, Cost of Production, Gross Margin, Cassava Production
