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 .
Searches related to SMALL SCALE AGRO-INDUSTRIES
- small farm business ideas
- new agricultural business ideas
- money making agriculture business ideas
- agro processing opportunities
- most profitable farming in india
- how to start agriculture business
- dried flower business
- agro based small scale industries projects
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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