A comparative analysis of the economics of cassava production and processing by IFAD VCDP participants and non-participants in Benue and Kogi States, Nigeria

This study analyzed the Economics of Cassava production and processing by IFAD VCDP participants and Non-participants in Benue and Kogi States, Nigeria. The objectives of the study were to: describe the socio-economic characteristics of the participants and non-participants along the value chain; estimate the cost and returns on production and processing of cassava by participants and non-participant respondents in the study area, and to identify the constraints to cassava production and processing in the study area. Two hypotheses were formulated and tested. There is no difference between the income of participants and non-participants The study employed the survey research design of descriptive type. Simple random sampling technique and Proportionate sampling (using Taro Yamane) were used to scientifically select 333 participants and 333 non – participants from the two states making 666 respondents. However only 664 questionnaires were found useful. Data collected were analyzed using frequencies, percentages, mean scores, and gross margin. Findings from the study revealed that majority of the respondents were males (52.71%), in the active age range of 31 – 50 years, married (89.31 %,), educated (84%) and had over five years’ experience (74.25%). Gross margin analysis showed that the participants had a gross margin of N792, 952 and Benefit-cost ratio of 6.64 as against N646, 961.76 and 5.83 by non-participant farmers respectively and N820, 374.10 and Benefit-cost ratio of 3.23 for participant processors and N452, 917.85 and 2.03 for non-participant processors respectively. Lack of funds (2.61), poor rural infrastructure (2.29), high transportation (2.42) and poor access to stem cuttings (2.44) constitute constraints to cassava production while lack of funds (2.90), poor rural infrastructure (2.44) and high transportation cost (2.15) constitute constraints to cassava processing. The z-test statistical analysis result revealed income differential of N264, 081 in favour of participants with a t-value of 12.0842 significant at 1% level (Pr. = 0.000). Conclusively, the study provides valuable insights into the dynamics of participants and non-participants in the IFAD VCDP programme, shedding light on their socioeconomic characteristics, and constraints. Notably, the participants in the programme demonstrated a higher mean income compared to non-participants, indicating the positive impact of IFAD project participation on income generation. The study among others recommends that policymakers explore options for providing financial assistance such as microcredit facilities, or grants to the participants, ensuring that financial literacy training accompany these initiatives to ensure responsible use of funds and investment in cassava-related activities.