VALUE ADDITION ANALYSIS OF LOCUST BEANS (PARKIA BIGLOBOSA) IN AKOKO NORTHWEST LOCAL GOVERNMENT AREA OF ONDO STATE, NIGERIA

Abstract

The study investigated the value addition of locust beans in Akoko Northwest LGA of Ondo State. Primary data were collected for the study and a multi-stage sampling technique was employed to select the respondents using a well-structured questionnaire. Descriptive statistics and gross margin analysis were employed to analyse the data. The result revealed that majority (60.00%) and (66.70%) of the producers and processors respectively were above 50 years of age, whereas about 90.00% of the marketers were below 50 years of age. Similarly, majority (91.10%) of the respondents were married female with about 75.60% having one form of education or the other. The producers made an average net income of ?21,843.97 at a selling price of ?635.24 while the processor made a net income of ?16,648.02 at a selling price of ?946.90 per kg and the marketer made a net income of ?22,950.00 at a selling price of ?1,200.00 per kg. This implies that while a producer made a gain of 52 kobo on every ?1 invested in the business, the processor and marketer made 21 and 24 kobo respectively on every ?1 invested in the business in the area. Result further revealed that while lack of modern technology was the first and most severe problem of the producers, lack of capital was attested to be the most militating problem of the processors and lack of organised market was the most militating challenge of the marketers.

Keywords: Value Addition, Locust Beans, Costs, Returns, Gross Margin, Nigeria.