Profitability and viability of cassava marketing in lean and peak seasons in Benin City, Nigeria.

Abstract

The profitability and viability of cassava marketing as an enterprise in lean and peak seasons of harvest in Benin City was examined in this study. A simple random sampling of 50 marketers of cassava was carried out in the study area so as to generate data for analysis. The result showed that the estimated average marketing margin was N2,657 per tonne of raw cassava tubers, with about 60% (N1,600) of this going into transportation cost. The average gross margin per tonne of raw cassava tubers was estimated as N1,545 while the net return was about N1,520 in the lean season. The peak season however, recorded negative returns with the implication that the business of cassava marketing was only profitable in the lean season. Also, the viability indices of benefit cost ratio and return per Naira invested of 0.02 and 0.01 in the lean and peak seasons of harvest respectively, showed that the business of cassava marketing was not viable; the marketers actually got negative returns in the peak season of harvest. This calls for urgent intervention of relevant stakeholders in the emerging cassava marketing industry.