Tag Archives: Gross margin

Analysis of Cowpea Fried Paste among Women Entreprenuer in Bauchi Metropolis, Bauchi State, Nigeria (Published)

An investigation was carried out in the profitability analysis of cowpea processing among women entrepreneur in Bauchi metropolis, Bauchi Local Government Area, Bauchi State, Nigeria. A random sampling technique was use in selection of 50 respondents. The data obtained was analyzed using descriptive statistics and gross margin analysis. It was realized that, majority (36%)of the respondents who engaged in cowpea  processing into cowpea fried paste are within the age bracket of 40-49 years and also of female folk (100%).The women who engaged in this business (88%) had about 1-9 as household size.(48%)of the respondents had informal education. About   38% of the respondent had processing experience of 15 years and above. while only 12% had processing experience of <5 years. Cowpea processing into fried paste in the study area was found to be profitable with a gross margin of N1286.5/day, operating ratio of 0.64and return per naira invested of 1.56.Constraints of cowpea processing  include high cost of inputs, inadequate capital base, access to soft loan amongst others. The studies recommend the formation of cooperatives by the women entrepreneurs in order to obtain loan so as to increase their capital base.

Keywords: Cowpea Processing, Gross margin, Operating ratio

Consumer Law and Challenging Business Environment (Published)

Consumer Law defines the parameter that helps to protect the consumers from unfair practices of sellers. In this regards, the law attempts to protect the consumers from unfair pricing and delivery of low quality products. Every country has a governing body the helps to protect the public by actively monitoring and evaluating the sellers’ activities. However, during the transition of saving the consumers, the law creates challenges for the businesses. It is evident from the research and its findings that consumer law affects a business in conflicting ways. A business needs to reform its operational practices as well as the pricing structure to ensure delivering superior quality products for an economical as well as competitive price. Adhering to consumer law practices, however, increases the costs of the business that creates multiple challenges in successful execution of the company’s strategic implications. Moreover, consumer law puts certain restrictions on business activities that adversely affect the business’s ability to market its products effectively.

Keywords: Consumer Law, Consumer Protection, Fair Trade Act, Gross margin, Marketing Restrictions, Price Equality, Profitability, marginal productivity

Analysis of Processing Cassava Tubers into Garri in Isoko North Local Government Area of Delta State, Nigeria. (Published)

Inadequate capital and lack of improved technology for cassava processing have become major challenges in the development of the agricultural sector of the Nigerian economy. This had prompted this study on the analysis of processing of cassava tubers into garri in Isoko north local government area of Delta state, Nigeria. Cross sectional data were collected using purposive and simple random sampling techniques with the aid of well-structured questionnaire for the 2012 processing season. Purposive sampling technique was used to select six towns from the study area based on their involvements in cassava processing activities. Thereafter ten (10) respondents were randomly selected from each of the towns making a total sample size of sixty (60) respondents. Data were analyzed using simple descriptive statistics such as mean, frequency distribution, percentages and inferential statistics including gross margin and regression analysis. The results showed that 95% of the respondents were females. the highest proportion (38%) of the respondents were within the age group of 50>60 years and 33% had secondary school leaving certificates, 75% of the respondents were married and 58% had household size within the range of 5>8 persons, 66% of them were into cassava processing on part-time basis, while 33% had 11 > 15 years of processing experience and 67% of them used family labour. The estimated annual total revenue was N610,000, total variable costs was N370,000 and the gross margin was N240,000 per annum per respondent which represented 64.86% of the total variable cost of production. The implication was that for every one naira invested in the processing of cassava, the farmer gained 65 kobo. The result of the regression analysis revealed that 57% of the variability of the estimated revenue per annum (Y) was being accounted for by the independent variables in the specified model. Inadequate capital and fund, lack of improved technology, inadequate processing and storage facilities, small sized enterprises with low earnings, poor markets characterized by low pricing of products were the major constraints encountered by the processors in the industry. It was therefore recommended that credit facilities should be channeled to processors through the current micro-credit scheme of the Delta State Government, Government policies should be modified to include the provision of training programme to disseminate scientific knowledge to cassava processors, the Research-Extension Farmer linkage should be strengthened to furnish the processors with modern labour saving processing techniques, Processors should form co-operative association to establish garri- added- value- centres for improved weighing and packaging methods; Government and non-governmental organizations/agencies should assist in educating the cassava processing farmers through effective extension system on improved cassava processing technology, to bring about improved production, marketing and profitability; and in doing so, improves livelihood, income and food security of the people.

Keywords: Cassava Processors, Constraints, Delta State, Gross margin, Nigeria, Regression Analysis