Economic potentials of processed soybean cake in Dutsin ma Local Government Area of Katsina State, Nigeria

This study investigated the economic potentials of soybean cake (Awara) processing in Dutsin Ma Local Government Area of Katsina State, Nigeria. The research focused on assessing profitability, evaluating input use efficiency, and examining the constraints faced by processors. A multi stage sampling procedure was employed to select 120 respondents from three key Awara processing clusters. Data were collected through structured questionnaires and analyzed using descriptive statistics, gross margin analysis and efficiency ratio analysis. The results revealed that Awara processing is largely dominated by young women (x̄: 16years) most of whom had secondary education. Profitability analysis showed that the enterprise is economically viable, with an average daily production cost of ₦13,511.41 and a daily revenue of ₦18,533.00, resulting in a gross margin of ₦5,021.59. Based on the profit margin, estimates return of ₦1.40 was realized every ₦1 invested. Resource use efficiency analysis indicated that some inputs, particularly cabbage, are underutilized, while others like oil and spices are used inefficiently. The major constraints identified included limited access to capital, lack of warm storage facilities, fluctuating consumer demand, and unstable market prices. The study concludes that Awara processing is a profitable microenterprise that can significantly contribute to women’s livelihoods and rural development if adequately supported. The study recommends the promotion of training programs by Government and non governmental organizations to Awara processors in the areas so that there will be efficient use of resources and marketing distribution management. Investment in efficient and low warm storage facilities by Government and private investors to reduce Awara processing losses and improve commodity profitability in the study area.