SMALL SCALE AGRO-INDUSTRIES | Money Making Agriculture Business Ideas

Government should as a matter of urgency encourage and promote through increased budgetary provision to small scale agro-industrial research and development that would generate new agro-processing technologies and innovations that would permit improved levels of agro-industrial productivity and efficiency.

Government should establish a specialized agro-industrial research in institute / agencies whose mandates should including coalation of research result from agro research institutes, abridging, reviewing and harmoning and commerce for easy access and utilization of agro-processors. This may be done through training seminars, workshops abd conferences as well as through direct agro-industrial extension service delivery to the agro-processors .

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            These institute should also ensure farmer food scientist-agro-processor –agro-researcher and agro- processing equipment fabricators feedback mechanism where  farmers produce quality and quantity the type  of farm produce suitable to available agro-processing equipment, the food scientist devices the various  food utility or type  products the agro-processors should process these farm produce into equipment as the technical economic ability of agro-processors to operate and purchase  the agro-processing equipment before fabricating while the agro-industrial researchers coalatus these views data, review them, and harnonise int research to bring about solution (s).
            they should also identify, redesign or modify  and adopt any appropriate improved SMEs, agro-processing  the agro-processing gives information as to the usability farm produce and agro-processor equipment to the farmer and agro-equipment fabricator respectively technologies and  innovation elsewhere that are percular to the state as well as provide consultancy service  to   agro-processor /equipment  in areas of feasibility studies, project planning and execution supervision, monitoring and evaluation as well as project financing project economic viability and socio-cultural acceptability of the project.
            Agro-Industrial Polices
            Since the study identified in appropriate agro-industrial policies, inconsistent and poor implementation of agro-industrial policies, there is a need to advocate for policy developments that will address these agro-industrial policy inadequacies and capses in the area. These include the followings.
i.        Government should regularly review and harmonize the existing agro-industrial policies of the state through policy advocacy, sensitization and legislation.
ii.     Government should encourage and promote consistent friendly workable and out ward oriented agro-industrial policies known for their greater dynamism, efficiency and effectiveness.
iii.   The new agro-industrial policy should be such with institutional restructuring, improvement of the investment climate, reduction in cost of doing business  rescitation of the sick and comatose industries and ultimately enhancing capacity utilization and competitive of the agro-industries.
iv.   Pro-indigenous economic policy to boost local capacity and content industrial sector should be pursued and implement by government.
v.      Government should identify evidence based polices, making informed policy dialogue and civil participation in economic policy making as important follow up mechanisms to improve  the policy process, and by implication the growth and competitiveness of the industrial sector.
vi.   Government should lay greater emphasis on research findings and systematic evidence as based for economic reform agenda.
vii. Government should be move concerned about institutional reforms that would directly affect genuine agro-ennterpreneurs and agencies involved in  direct SME production or catalyzing SMEs agro-industrial development and growth.
viii.          Government support to small scale agro-industrialization should be inform of policy and institutional reforms of policy and guided policy instruments to regulate and supervise small scale agro-industries in the state.
This will help them to realize their full potentials and contributions to the socio-economic development and growth of the country / state.
ix.   Government should forge partnership with private sector and other stakeholders in policy advocacy and sensitization, formulation and execution as well as policy review and reform.
x.      Overall, the level of efficiency and productivity as well as as lack of competitiveness among the small scale agro-industries raise the partient questions of whether decade of SMEs polices and programmes in Nigeria have produced the desired or expected upward economic performance of industries that had adopted the series improved technologies. Therefore these agro-industrial policies and programmes should be reviewed.
xi.   Government should classing agro-industries into feeder agro-industries (processing semi-finished goods) and producer agro-industries of finished products to give policy focus .
xii. Government should as matter of deliberate action and policy define and classily small scale agro-industry into micro and macro groups to avoid value definition .

The important in put factors that increased technical and allocative efficiency were accesses to appropriate markets, capital employed, energy supply and age of agro-processing equipment while value of raw materials, value of assistance, labour in use and capacity utilization decreased both technical and allocative efficiency of agro-industries except value of assistance. Also, important personal factors that increased both technical and allocative efficiencies were personal income from other sources, working capital, number of organization (s) belonged to and value of credit obtained while age of agro-processors years in school and house and household size decreased both technical and allocative efficiency of the agro-industries in the area. Therefore, policy and programme initiatives that will lead to increased access to appropriate market utilizing quality raw materials and skilled labour at existing levels of value of assistance, age of agro-processing equipment and capacity utilization targeted  at less educated but skilful young agro-processors, belonging to many organizations but with reduced household sizes and good capital base, will be fundamental in increasing both technical and allocative efficiency of the agro-industries in the study area. This can be achieved through increasing access to appropriate markets by providing access to roads to purchase and evacuate raw materials and agro-industrial products respectively , provision of decentralize low-cost storage facilities to state both  excess raw materials and products to avoid irregular seasonal supply and market glut of raw materials and agro-industrial products respectively provision  of sustainable community based micro credit scheme for easy access to capital deregulation of the energy sector for more available and affordable petroleum products and electricity; increasing agro-processing skill by training attracting young processors using appropriate incentries as well as reducing house hold size by adoption of national family programme of government.
            Apart from reorganizing production inputs or improving efficiency levels, other managerial precautions are relevant. Agro-processors should be more committed to the adoption of improved agro-processing techniques and innovations that would impact positively to increase agro-industrial production and improved managerial skills. The managerial skills can be achieved through capacity building in training seminers, workshops and conferences as well as in-service trainings and retraining. All this will improve and increase the technical and allocative efficiency of small scale agro-industries in the state. All the less efficient processor should adopt the practices of the efficient ones in order to make enterprenuers more.
Constraint factors: Having identified the constraint factors of small-scale agro-industries in the area as finance, economic, infrastructure, market and making information, scarcity and high cost of inputs, low agro-industrial research and poor agro-industrial polices, inappropriate and high cost of agro-processing equipment, low educational and manpower development, agro-industrial production inefficiencies and low in come generation as well as hash economics and social environment, there is urgent need to address these challenges for increased competitiveness scale agro-industries in the study area. This can be achieved through strict adherence to the suggestions /recommendations /solution proffered by the study. It is expected that strict adherence to the recommendations and solutions would transform small scale agro-industrial subsistent production to commercial (medium and large scale) production interms of full capacity utilization with little or no rate of mortality. This would erect small scale agro-enterpreneurs  objectives of suitemate food security, enhances income and employment generation.

6.4 Contributions of the Study to Knowledge
            The study highlighted the importance of small scale agro-industries as poverty allervation enterprises interms of sustainable food security, enhanced income and employment  generation, efficiency and productivity of resources used.  Most of the past studies in the state /Nigeria which studied the economics of small scale agro-industries, have mostly focused on the profitable role and contributions of small scale agro-industries rather than other economic indices of economic performance such as mortality, rate capacity utilization , efficiency and productivity of resources used in the production process.
            A number of studies in the state have attempted the economic aspect at partial and smaller levels. Such studies in Ebonyi state for instance by Oreke (1993) and Nwibo et al  (2009)  were restricted to Abakaliki LGA of he state while Oreke (2001) assessed the profitability and financial ratios of small scale agro-industries in Ebonyi State Ibe Enwo (2009) assessed the influence of issues and institutions on micro and small scale agro-processing enterprises in poverty allivation in Ebonyi State Osotinehin et al (2006) assessed profitability and operational efficiency of small scale Dairy milk processing in Kogi state Nigeria  Elsewhere, subrahmanyam (1995) assessed the marketing of perishable commodities, the role of fruits and vegetable processing industries in India, Chandha (2003) assessed the performance of agro-based industry in India analysis post reform, advances and reverse. While Ghandha  (2004) analyzed the economics of mango Philip agro-based industry in Krishnagiri District,  Tamil Nadu, India but did not analyse the productivity efficiency, mortality rate and capacity utilization.
            By estimating the production efficiency technical, allocative and economic, mortality rate and capacity  utilization of small scale agro-industries t this wider scope and coverage , the study has not only provided the performance level of the small scale agro-industries but also the indices of  efficient use of various resources by small scale agro-industries in the study area. All these are raw in the literature at this level and will help government in formulating polices that will encourage and motivate small scale agro-industries to adopt best practices for the full attainment of efficiency ) (production frontier) capacity utilization at the minimum rate of mortality for the enhancement and sustenance of good security income and employment generation in Ebonyi state and in Nigeria in  general.
            Also, this knowledge can ensure the capacity of policy makers and designers to initiate policy and reforms that will ensure the empowerment of more vulnerable group especially in rural areas. Such empowerment will no doubt enhance food production and security, enhanced income and empowerment generation especially for the youths and rural poor. This work highlights some areas of possible linkages of small scale agro-industrial specific policy and institutional reforms productivity efficiency and sustainability in small scale agro-industrial production. It provides necessary information for increased understanding of agriculture industry integration /linkage especially as it concerns farm produce and agro-industrial processing of same into various food products as well as the constracts inherent in the linkage process.
            The study will also be valuable to investors and implements of food security and poverty alleviation programmers as baseline information to work with success of poverty alleviation in tervention in the state/ Nigeria students will also find it a useful document for further research on resources use efficiency, capacity utilization mortality rate of small scale agro-industries in other parts of the country / Nigeria.
6. 5 Recommendation for Further Research
            The study recommends the followings for further research:
Investigation into economic sustainability of small scale agro-industrial production in the face of challenges such as low income production inefficiency, mortality rate and low capacity utilization caused by lack of appropriate market and equipment, partous infrastructure, high cost and scarcity of inputs high cost of transportation, low educational and manpower development, poor agro-industrial policies and hash economic and social environment, that may lead to further decrease in small scale agro-industrial production in the study area.
            The requires further investigation into the extent these factors are influencing the productivity of small scale agro-industries in the state. This kind of study will require a different methodology and analytical approach. It will, however, provide more insight into useful explanations for the issues of what constitutes appropriate market and equipment, the extent of availability of infrastructure especially in rural areas. Such a study well also expose some of the reasons for low economic performance of these small scale agro-industries which cannot be adequate provided in this study because of the limitations to the scope of the study.
·        Comparative analysis of small scale agro-industrial production in other state of the federation and the wider world.
·        Economic of small scale agro-industrial production in Nigeria
·        Agriculture –Industry value chain: Implications for food security and poverty alleviation
·        Trend analysis of economic performance of small scale agro-processing industries in Ebonyi state from 2003 to 2003.
·        Analysis of micro and macro economic policy impacts on small scale agro-industries in Nigeria  from 2003 to 2013.
·        Determinants of small scale agro-processing and poverty alleviation among rural households in Ebonyi State, Nigeria

CHAPTER FOUR
4.4.1 Average month cost structure of small scale agro-industries in the state
Data in table 24 reveal that per LGA per agro-industry ranged from the least value of N82,650 (Izzi LGA) to the highest value of N87,433 (Afikpo south LGA) totaling N96445 , for all the agro-industries with a mean of N84, 939 for the study area. The table also shows that monthly average total fixed and variable costs contribute N15,7361 or 21% and 607090 or 79% respectively to the average total cost of production valued at N76445 for the study area.
4.4.2 Average monthly revenue structure of small scale agro-industries   
 Table 25 incidicates that the average monthly total revenue /profit of the small scale agro-industries to be N109, 2323 with a mean for the study area of N121,369.00
            The table further reveals that the average monthly net revenue /profit ranged from the least value of N33, 363 (Afikpo South LGA) to the highest value of N38,33 (Ohaukwu LGA), totally N327872 with a mean of N36,430 for  the study area. The table also reveals the returns to one naira invested ranged from the least value of 0.38 (Afikpo south LGA) to the highest value of N0.46 (Ohaukwu and Ivo LGA) with a mean for the study area of N0.43. that is every N1.00 expended returned N0.43 to the agro-enterprenuer/processor.

4.4.3 average monthly cost and revenue structures of cassava, rice and oil palm fruits processing industries in the state
Table 26 indicates that the monthly cost of production per local government per small scale cassava processing industries ranged from the least value of N77,516 (ohaukwu LGA) to the highest value of N88,510 (Ivo LGA) totaling for the study area N737,709 with a mean of 81, 967.70.  the table also show that the average monthly total fixed and variable cost contribution N162, 169, or 22% and N575,540, 540 or 78% respectively to the  average monthly total cost of production of N73709.00 for the study area.
                        The table further reveals that the average monthly total net revenue /profit for cassava processing ranged  from the least value of N33.020 (Ezza North LGA) to the highest value of N38,980  (Ohaukwu LGA) totally N329240 with a mean for the study area of N36582 .20. the table also shows tat the average monthly returns to one naira invested for cassava ranged from the least value of N0.37 (Ezza North LGA) to the highest value of N0.50 (Ohaukwu and Izzi LGA) with a mean of N0.45.
            As for Rice milling industries the table reveals that the average monthly cost of production per LGA per industry ranged from the least value of N84,984 (Ishielu LGA) to the highest value with a mean of N87,286.10 for the study area the table also shows that the average monthly total fixed and variable costs contributed N151500 0r 19% and N634075 or 81% respectively to the average monthly total cost of production of (N785575 for the  study area.
            Further the table reveals that the average monthly total net revenue /profit for Rice milling enterprises ranged from the least value of N33,045 (Afikpo South LGA) to the highest value of N38985 (ikwo LGA) with a  mean of N0.42 for the study areas.
            As for oil palm fruits processing industries data in table 26 reveal that the average monthly cost production per LGA per agro-industry ranged from the least value of N82,815 (Ishielu LGA) to the highest value of N89,304 (Abakaliki LGA) totaling N770,068 with a mean of N85,563.10 for the study area. The table also reveals that the average monthly fixed and variable costs contributed N158413 or 21% and N611 655 0r 79% to the total average monthly cost of production put at N770, 068 for the study area.
The table 26 further reveals that the average monthly net revenue / profit ramged from the least value of N33,030 (Afikpo south LGA) to the highest value of N38,820 (Ohaukwu LGA) totaling (N325363 with a mean of N36,151. 40 the table also revealed that the average monthly returns to one naira invested ranged from the least value of N0.37 (Abakaliki LGA) to thee highest value of N0.46 (Ishielu LGA) with a mean of N0.42.

CHAPTER FIVE
5.4.1 THE AVERAGE MONTHLY COST STRUCTURE OF SMALL SCALE INDUSTRIES IN EBONYI STATE    
The average monthly cost of production of small scale agro-industries in the state was N84,939 as shown in table 24. This is quite high considering, according to EBSG (1997), the current endemic to property prevailing in the state. This would make it hard for new entrants (prospective agro-processors) to enter into agro-processing business or even make the subsisting agro-processing industries find it very hard to stay in business. The scarcity and high cost of raw materials of unsteadniess of farmers who produce the farm produce occeasioned by communal and inter-tribal conflicts and crises as well as food disasters that engulated the state during the season under study. On the likely Izzi, Ezziulo Ezza, Ezzagu /Ngbaleze and ikwo /Edadama community in cross river state conflicts and crises come into mind. Also, the recurrent flood diseasters which washed away many farms as well as rendered many farm lands unproductive as farmers stayed away from flood –prone farmlands for fears of flood disasters. Also, climate change currently the vogue worldwide may have caused poor yields of agricultural production in the state, hence scarcity and high cost of the available resources. It may be due to poor quality products which attract low prices. It may also be due to inacessiability of appropriate markets due to impassable roodnet workers. It may resources occasioned by, accordingly to Oreke (2001) poor manpower development in the state.
Therefore, any cost of production improvement interventions should focus more on cheap raw materials (farm produce) as well as reduction of weather disaster and inter and intra state conflicts and clashes. In alternative, the agro-processors in other adopt the production system of Izzi LGA agro-processors whose average cost of production (N82,650) was lower than the average cost of production for the state (N84,939 as seen in table 24.
Also , table 24 shows that the monthly average cost of production ranged from the least value of N82,650 (Izzi LGA) to the highest value of N87,433 (Afikpo south LGA). This implies that the average cost of production varied among the local. This tends to agree with Osotimeh in et al (2006) who found varied value of monthly average cost of production among LGAS and agro-mill processessors in kogi state of Nigeria. Government and among the agro-industries in the study area . the least value of monthly average cost of production in Izzi LGA may be due to cheap production of high quality and quantity farm produce as raw materials. It may also be produce due to accessibility of appropriate markets higher and quantity products which attract higher prices. It may be due to reduction in environmental problems as well as better management of available resources. The highest value of monthly average cost of production recorded in Afikpo south LGA may be due to declining productivity of agriculture in the area to produce cheap quality and quantity farm produce as raw materials. It may be due to access to appropriate market as well as poor management of available resources
5.4.2 Monthly Average net revenue /profit
Data net revenue in table 25 reveal that the monthly average net revenue /profit was N36,430 for tee study area. This implies that all small scale agro-industries in the state aree profitable. This tends is disagreed with Osotimehin et al (2006) and Ibe Enwo (2010)who found  monthly average net revenue /profit to be N18,011. 20 states respectively. However the monthly average net revenue /profit (N36,430) was more  than doubt of N18,000 national minimum wage per month. Therefore any poverty allivation intervention  programmes should focus more on promotion of small scale agro-industries. The relative high monthly average net revenue profit may be due to the relative youthful age of the agro-processors with bracket is still emergetic and strong to engage in agro-processing activities described by Ibe-Enwo (2010) as laborious and tedious needing highly emergetic and active labour force. It may also be due to high average number of years in school (9 years) which helped agro-processors to willingly adopt innovations and practices to improve their productivity.
            The table also reveals the average monthly net revenue /profit to range from the least value of N33.363 (Afikpo South LGA) to the highest value of N38,330 (Ohaukwu LGA). This implies that the monthly average net revenue / profit varied among LGAs and among agro-industries.
            This tends to agree with Osotimehin et al (2006) and Ibe-Enwo (2010), who variations in monthly average net revenue /profit among LGAs and agro-industries studied in Kogi state and Ebonyi states respectively. It also agreed with Ibe-Enwo (2010) who found the monthly average net revenue /profits of small scale agro-industries in Ebonyi State to range between N33.000 and N38, 00.
            Also the table revealed that the least monthly average net revenue / profit N33.363 was obtained in Afikpo south LGA . it may due to fact that Afikpo south LGA had the highest monthly cost of production among the LGAs studied. It may be due non-accessibility of appropriate market occasioned by partious infrastructure of impassable road net works to evaluate products to urban areas where relative higher prices for the products are possible. It may be due to poor management of available resources as a result of lack of manpower development in the state
            The table also revealed that the higher value of N38, 330 was obtained in Ohaukwu LGA. This may be due to low average monthly cost  production (N83,836 ) which was lower than the monthly average cost of production for the study area put at N84, 939 (table 24) it could be due to availability of appropriate  markets as well as better management of available resources. It may also be due to high product quality which attracts higher prices.
Also, the table revealed that the returns to one naira invested ranged from the least value of No.38 (Afikpo South LGA) to the highest value of N0.46 (ohaukwu/Ivo LGAs) with a mean of N0. 43. This average monthly returns to one naira invested of N0.43 was very low. This tends to disagree with Osotimehin etal (2006) who found thee returns to one naira invested to be N2.54 . the average of N0.43 mans that for every one naira invested returned N0.43 to the agro entrepreneur in Kogi state, Nigeria the results in table 25 also revealed that the returns varied from one LGA to another and from one industry to another in the state. Therefore any pilot scheme of small scale agro-industries should be sited in Ohaukwu and Ivo LGAs while Afikpo South, Ezza North Ohaozara and Abakaliki LGAs should be avoided in the short –run until production activities are improved. In alternative, these LGAs should adopt the management practice of Ohaukwu and Ivo LGAs in their production systems.
5.4.3 Summary of costs and returns of cassava, Rice milling and oil palm fruits processing small-scale agro-industries in Ebonyi State.
            For cassava enterprises, the monthly average cost of production and net revenue / profit were N81,967 .70 and N36.582.20 respectively, while the average returns to one naira invested was N0.45 (table 26)
For Rice milling industries in table 26 the monthly average cost of production and net revenue / profit were N87,286.10 and N36,557.00  respectively, while the mean returns to one naira invested was N0.42.
For oil palm fruits processing industries in the same table 26, the monthly average cost of production and net  revenue /profit were N85,563 .10 and N36,151 .40 respectively while the mean returns to one naira invested was N0.42       


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