Comparative Analyses of the Profitability of Cassava Value Chain Actors in Imo State, Nigeria

Abstract

Cassava (Manihot esculenta Crantz) remains a vital staple and economic crop in Nigeria, particularly among smallholder farmers. This study compared the profitability of cassava value chain actors in Imo State, Nigeria focusing on their socio-economic characteristics, cost and returns as well as their income distribution patterns. Using a multi-stage sampling technique, data were collected from 120 cassava value chain actors, producers, processors, and marketers across 12 Local Government Areas within the state's three agricultural zones. Analytical tools included descriptive statistics, cost-return analysis, profitability ratios, and Gini coefficient estimation. Findings reveal that cassava farming in the state is predominantly a smallholder and femaleinclusive enterprise. Female actors demonstrated greater financial efficiency than males across the value chain, although males recorded higher absolute profits. The return on every Naira invested was ₦1.67 for female producers and ₦1.56 for males, indicating higher cost-effectiveness among women. The VCAs were mainly small-scale operators, going by whatever categorization, be it farm size (< 1 ha), weight/tonnage of products (< 1MT), turnover (< I million N) or employment (less than five persons). However, income distribution varied significantly: cassava producers exhibited relatively equitable income distribution (Gini coefficient = 0.3218), while processors (0.6851) and marketers (0.5088) showed severe income inequality. The study concludes that while cassava-based enterprises are profitable, substantial disparities in income and resource access exist among actors, particularly among processors and marketers. It recommends targeted policy interventions including cooperative mobilization, access to affordable inputs and credit, capacity building, and gender-responsive support systems to enhance cassava value chain efficiency and inclusiveness in Imo State.