Sodeeq Et Al

Sodeeq et al

Greener Journal of Agricultural Sciences

Vol. 10(1), pp. 34-42, 2020

ISSN: 2276-7770

Copyright ©2020, the copyright of this article is
retained by the author(s)

https://gjournals.org/GJAS

 

 

 

 

 

 

 

Comparative Financial Analysis among Two Actors of
Cassava Value Chain in Oyo State.

 

 

1,2Sodeeq,
A.E, 1Ibrahim, A.G, 1Lamidi, L.O, 1Famuyiwa,
A.K

 

 

1. Department of Agricultural
Extension and Management, Federal College of Animal Health and Production
Technology, Moor Plantation, Ibadan

2. Department of Agricultural
Economics, University of Ibadan, Ibadan
.

 

 

 

ARTICLE INFO

ABSTRACT

 

Article No.: 01142008

Type: Research

 

 

Value chain has been perceived as an efficient strategy and magic
formula for development of sustainable agriculture in Nigeria.
Unfortunately, the issue of finance specificity
which is a paramount element in value chain development
is left out in
many studies on cassava value chain. This study thus comparatively
investigated finance analysis among two actors of cassava value chain in Oyo
State, Southwestern, Nigeria. Data were collected using structured
questionnaire administered to respondents (150 farmers and 150 processors)
selected by multistage sampling techniques across Agricultural Development Program (ADP)
Administrative Regions in the state while analytical tools used were
descriptive and Tobit regression
. The result reveals that 79.3% of farmers in cassava value chain
were male, mostly youth with average age of 35 years and secondary education
while all the processors were female, 
middle aged with average age of 45 years and most having primary
education. Also, variety in demand for financial needs exist among the actors
as majority of farmers needed more than N200,000 while processors needed
N50,000 or less. Experience as a cassava farmer (prob < 0.10), farm size
(prob < 0.05), secondary occupation (prob < 0.01), monthly income (prob
< 0.01) and disbursement lag (prob < 0.01) were found to have
significant positive impact on the extent of finance accessibility by farmers
while business size (Prob <0.01) and finance ration (Prob <0.10) were
found to have significant positive impact on the extent of finance
accessibility by processors.
Thus, the study recommended that Finance should be made available at the right time preferably rainy season for
the actors in all the stages of cassava value chain for more produce and
Nigerian Agricultural Co-operative Bank, Commercial Banks and various
Community Bank, etc. have a great role to play in this regard.

 

Accepted:  16/01/2020

Published: 25/02/2020

 

*Corresponding Author

Sodeeq AE

E-mail: srenesi@ gmail.com

 

Keywords:

Value Chain; Cassava; Finance; Farmers; Processors

 

 

 

Return to Content       View [Full Article – PDF]  

[Full Article – HTML]             [Full Article – EPUB]

Post-Publication Peer-review Rundown

View/get involved, click [Peer-review]

 

 

REFERENCES

 

Adegeye, A.J. and
Dittoh J.S. (2002), “Essential of Agricultural Economics”, Ibadan: Impact
Publishers,
Nigeria, Ltd. 183.

 

Adejobi,
A.O. (2004): Rural Poverty, Food Production and Demand in Kebbi State, Nigeria.
Unpublished Ph.D Thesis, Department of Agricultural Economics, University of
Ibadan.

 

Adenle AA, Aworh OC, Akromah R and G Parayil Developing GM (2012)
supercassava for improved health and food security: Future challenges in
Africa. Agr Food Sec, 2012;1: 1-15.

 

Adewole,
S and Omoye, A (2018): Effect of Financing on Cassava Value Chain in Owo Local
Government Area, Ondo State, Nigeria. Scientific papers series, management,
economics, engineering in agriculture and rural development, vol 18(1)

 

Aerni, P (2006): Mobilizing science and technology for
development: The case of the Cassava Biotechnology Network (CBN). AgBioForum,
2006;9(1): 1-14.

 

African
Research Council (ARC) (2013): Field crops: Cassava. Accessible at
http://www.arc.agric.za/home.asp?PID=372&ToolID=63&ItemID=1509 visited
on 7th October 2013.

 

Austin, P.C.,
Escorba, M. and Kopec, J.A. (2000): Use of the Tobit Model for Analyzing
Measures  of Health Status, The Qual Life, 8: 901-910. Institute for Clinical
Evaluative Science (ICES).

 

Casuga, M.S., Paguia,
F.L., Garabiag, K.A., Santos, M.T.J., Atienza, C.S., Garay, A.R., Fernandez,
R.A. and Guce, G.M. (2008): Financial Access and Inclusion in the Agricultural Value
Chain, Asia-Pacific Rural and Agricultural Credit Association (APRACA),
Bangkok.

 

FAO (2000): Rice Information, Vol. 2. Rome: Food
and Agricultural Organization

 

FAO (2014): Youth and
Agriculture; Key Challenges and Solution. Publication by Food and Agriculture
Organization of the United State (FAO) in Collaboration with the Technical
Centre for Agricultural and Rural Cooperation (CTA) and the International Fund
for Agricultural Development (IFAD).        

 

Gujarati, D.N. (2004):
Basic Econometrics, 4th Ed. New
York: Tata Graw – Hill Publishing Co. Ltd.

 

Hazell, P.B.R.
(2011): “Five big questions about five hundred million small farms”, paper presented
at the Conference On New Directions for Smallholder Agriculture, IFAD, Rome, 24-25
January.

 

Henri-Ukoha, A.,
Anaeto, F.C., Chikezie,C., Ibeagwa, O. B., Ukoha, I.I., Oshaji, I.O., Anyiam,
K.H., (2015): Analysis of Cassava Value Chain in Ideato South Local Government
Area, Imo State, South-East Nigeria. International Journal of Life Sciences
Vol. 4. No. 4. 2015. Pp. 209-215.

 

International Finance
Corporation (IFC) ((2012): “Innovative agricultural SME finance models”, International
Finance Corporation, Washington, DC.

 

Kapinsky
and Moris (2001): Globalization and In equalization; What can we learn from
value chain analysis? Journal of development studies, 5: 124 – 136.

 

Kleih U, Phillips D, Jagwe J and M Kirya (2012): Cassava
market and value chain analysis. Uganda Case Study. C: AVA Final Report. Natural
Resources Institute, UK and Africa Innovations Institute, Uganda
, 2012.

 

Kumar A.,
Singh H., Kumar S., Mittal S. (2011): Value Chains of Agricultural Commodities
and their Role in Food Security and Poverty Alleviation – A Synthesis.
Agricultural Economics Research Review, 24: 169-181.

 

Manyong V and B Ayedun (2014): Awareness and
adoption of improved cassava varieties and processing technologies in Nigeria. Journal
of Development and Agricultural Economics
, 2014;6(2): 67-75.

 

Meyer, R.L. (2007):
“Analysing and financing value chains: cutting edge developments in value chain
analysis”, paper presented at the 3rd African Microfinance conference on New Options
for Rural and Urban Africa, Kampala, 20-23 August.

 

Miller, C. (2012):
“Agricultural value chain finance strategy and design”, technical note, International
Fund for Agricultural Development (IFAD), Rome.

 

Miller, C. and Jones,
L. (2010), Agricultural Value Chain Finance: Tools and Lessons, FAO, Practical
Action Publishing, Rome and Rugby.

 

Narayanan, S. (2012):
“Notional contracts: the moral economy of contract framing arrangements in
India”, WP-2012-020, Indira Gandhi Institute of Development Research, Mumbai.

 

Nweke F.I. (2003):
New challenges in the cassava transformation in Nigeria and Ghana. Conference
Paper No. 8. Paper presented at the INVENT, IFPRI, NEPAD, CTA conference.
Successes in African Agriculture, Pretoria, 1 and 3 December 2003.

 

Odongo W and Etany S   (2018):
Value chain and marketing margins of cassava: an assessment of cassava
marketing in northern ugjanda.  Ajfand,
vol 18(1).

 

Okoye, B. C., Okorji,
E. C and Asumugha, G. N (2004): Outlook on Production Economics of Paddy Rice
under resource constraints in Ebonyi State. Proc. of the 38th Annual Conference
of the Agricultural Society of Nigeria. (ASN), 17- 21 Oct. 2004, Lafia Nasarawa
State. Pp 337-342.

 

Omonona,
B.T (2000): Poverty and Its Correlates Among Rural Farming Households in Kogi
State. Unpublished Ph.D Thesis. Department of Agricultural Economics,
University of       Ibadan, Nigeria.

 

Rahji
M. A. Y (1999): Factors Influencing The Level and Intensity of Adoption of
Animal Traction Technology in Bauchi State, Nigeria. Centre point Science
Edition 9 (1): 30-41.

 

Salau
E.S, Adua, M.M, Maimak, M.K and Alanji, J (2017): Entrepreneurship Skills of
Small and Medium Scale Poultry Farmers in Central Agricultural Zones of
Nasarawa State Nigeria. Journal of Agricultural Extension, Vol 21 (3)

 

Sanni, L. O.,
Onadipe, O. O., Ilona, P., Mussagy, M. D., Abass, A. and Dixon, A. G. O. 2009. Successes and Challenges of Cassava
Enterprises in West Africa: A Case Study of Nigeria, Benin and Sierra Leone.
Ibadan, Nigeria: International Institute of Tropical Agriculture.

 

Sayre, R., Beeching,
J. R., Cahoon, E. B., Egesi, C., Fauquet, C., Fellman, J., and Zhang, P. 2011.
The Bio Cassava Plus Program: Biofortification of Cassava for Sub-Saharan
Africa. Annual Review of Plant Biology, 62: 251-272.

 

Shwedel, K. (2010),
“Agricultural value chain finance”, paper presented at the Conference on Agricultural
Value Chain Finance in Costa Rica, San Jose, 22-24 February.

 

Sodeeq Abdulrahman
Enesi, Ashaolu Olumuyiwa Fowowe, Salawu Mutiat Bukola, Orumwense Lucy Adeteju
(2016), “Economic Evaluation of Private Nursery Enterprises in Oyo State,
South-Western Nigeria”, International Journal of Agriculture and
Environmental Research.
2(4).

 

Tobin, J. (1958):
Estimation of Relationships for Limited Dependent Variables, Econometrica, 26: 24-36. United Nations. 2012. Millenium Development Goals
Report 2012 http://www.un.org/millenniumgoals/pdf/MDG%20Report%202012.pdf.

 

UNIDO, CBN, and BOI
(2010): Unleashing Agricultural Development in Nigeria through Value Chain
Financing. Working Paper. Novemeber 2010. United Nations Industrial Development
Organization (UNIDO). Vienna, Austria.


  

 

Cite
this Article:
Sodeeq, AE; Ibrahim, AG; Lamidi, LO;
Famuyiwa, AK (2020). Comparative Financial Analysis among Two Actors of
Cassava Value Chain in Oyo State. Greener
Journal of Agricultural Sciences
10(1): 34-42.

.

 

Leave a Reply

Your email address will not be published. Required fields are marked *