CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Manihot esculenta, known as Cassava is one of the world's most important food crops and with

an annual output of over 34 million tonnes of tuberous roots, it is also very economically

rewarding (Food and Agriculture Organization Database, 2005).

The diverse benefits and opportunities in Cassava farming cannot be over emphasized. Farm

Crowdy Reports indicate that at least 1 in 10 families all over the world consumes products made

from cassava daily. Cassava, now grown throughout the tropical world, is second only to the

sweet potato as the most important starchy root crop of the tropics. The areas now used for

cassava cultivation are increasing rapidly because it grows easily, has large yields and is little

affected by diseases and pests. The plant is grown for its edible tubers, which serve as a staple

food in many tropical countries and are also the source of an important starch.

Why is this farm product in high demand? Well, here are some of the benefits: Cassava is

drought tolerant, which means it also does reasonably well in poor soils with low rainfalls,

hence, can be a reserve product in times of farming. It has an extensive root system that makes it

access nutrients other crops cannot. Cassava roots store well in the ground for months after

maturity Due to the above, its economic value rarely diminishes! This is why over the years it

has become a priority for the Nigerian government to aid the production of cassava and its

derivatives. It is a flexible crop as it can serve as subsistence or cash crops. So, while poor

farmers can use it as a food crop, entrepreneurs can also use it as a cash crop. Cassava products

are used for starch, flour, chips, ethanol, glucose syrup, and bread, which are known as its

derivatives.

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The cassava plant is also a good source of energy. Cassava is rich in carbs, calories, fibre,

vitamins, minerals and smaller amounts of fats and protein and can be dried and used to make

starch and feed animals. Cassava production has been increasing for the past 20 or more years in

area cultivated and in yield per hectare. On average, the harvested land area was over 80 per cent

higher during 1990–1993 than during 1974–1977 (Federal Ministry of Agriculture and Natural

Resources, 2006). In Nigeria, cassava plays a very important role in the food economy (Asogwa,

Ezihe and Ater, 2013). Consequently, Nigeria is the largest cassava producing country in the

world with an annual estimate of 45 million tones (Central Bank of Nigeria, 2010). Nigeria’s

production accounts for 19% of the world output and 34% of Africa’s output (Okoro et al.,

2005). According to Moya (2008), cassava is produced largely by small-scale farmers using

rudimentary implements. It should be noted that cassava per capita consumption is very high and

provides about 80 per cent of the total energy intake of many Nigerians (Ani and Agbugba,

2017). As a food crop, cassava fits well into the farming systems of the smallholder farmers in

Nigeria because it is available all year round, thus providing household food security. Compared

to grains, cassava is more tolerant to low soil fertility and more resistant to drought, pests and

diseases I find it interesting that throughout the tropics, its roots and leaves provide essential

calories and income. Africa is one of the continents of the world where some 600 million people

are dependent on cassava for food (International Fund for Agricultural Development, 2013).

Quite interestingly, Nigeria is the largest producer of cassava tubers in the world with average

annual production of about 35 million MT over the last 5 years, though not the highest exporter.

Its production industry in Nigeria is increasing at 3% every year even though Nigeria continues

to import starch, flour, sweeteners that can be made from cassava. This paradox is due to how

cassava is produced, processed, marketed, and consumed in Nigeria, in a largely subsistence to

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semi-commercial manner. About one-third of the total national output comes from the Niger

Delta region where many livelihoods depend on cassava as a main source of food and income. It

has been estimated that the number of small commercially oriented cassava producers within the

region would be in the range of 70,000- 120,000 out of the more than 1 million producers

(Nigeria Bureau of Statistics, 2013; Cassava Report Final, 2013).

For harvesting, the maturity differs depending on the variety. For food, the tubers can be

harvested at almost any age around 12 months. It can be harvested by cutting the stem off,

leaving the part close to the ground so you can grab and pull out the roots. High-quality cassava

flour is made within a day of harvesting the root. It is very white, has low fat content, is not sour

like traditional, fermented cassava flour, does not give a bad smell or taste to food products and

can mix very well with wheat flour for use in bread or cakes (Adesina and Bolaji, 2013).

According to Acta Scientific, despite being the highest producers of cassava in the world,

Nigeria has a mediocre total export of 1.25 million dollars compared to Thailand which has the

highest export value of 1.19 billion dollars in 2017. This provides an amazing opportunity in the

export market for entrepreneurs.

It is very important to also note that due to the possibilities involved in Cassava production and

marketing, it is included in most of the zero poverty, zero hunger sustainable development

programs, especially in Africa (Azih, 2008).

1.2 Statement of Problem the problem

Success is often said to bring new challenges. Cassava is one of the major sources of energy and

the multiplicity of its use makes it indispensable for food security, however, several constraints

affect cassava processing which limit the contribution that the crop makes to the nation’s

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 economy. The industrial utilization of cassava products is increasing but this accounts for less

than 5% of the total production (PIND, 2011). However, simply boosting production without

proper boosting of its marketing can lead to a glut of cassava on the market. This can depress

prices and discourage farmers from investing in and cultivating this fundamental crop (IFAD,

2013).

Furthermore, as stated earlier, Cassava is produced mostly by smallholder farmers on marginal

or sub-marginal lands of the humid and sub-humid tropics (FAO, 2002) and a cassava

smallholder is mainly interested in selling his roots as fast as possible, while processing just

enough for the subsistence of the farm family (Adebayo & Sangosina, 2005; Ntawuruhunga,

2010).

Such smallholder agricultural systems as well as other aspects of its production and use often

create problems, including: the unreliability of supply, uneven quality of products, low producer

prices, and often expensive market structure.

Finally, as it pertains to processing, Cassava tubers consist of 60 to 70 percent water and have a

shelf life of 2 to 3 days. Once harvested, the tubers have to be processed or consumed

immediately otherwise the tubers begin to deteriorate. The need for processing arises to stabilize

the crop for storage purposes and price stability guaranteeing higher prices for farmers.

However, the cost of acquiring simple processing machines is prohibitive for the small farmer

and in the more humid cassava producing areas, the use of dryers is critical.

The research study attempted to answer the following questions:

i. What is the socio- economic features of the respondents in the study area?

ii. What are the returns on investment (ROI) in the marketing of the selected cassava

products?

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iii. What are the factors affecting the profitability of the selected cassava products?

iv. What are the channels of marketing the cassava products?

v. What are the constraints experienced in the marketing of the selected cassava products?

1.3 Objectives of the Study

The broad objective of the study is to conduct a profitability analysis of Cassava Flour and Garri

in Port- Harcourt City Metropolis, Rivers State.

The specific objectives of the study are to:

i. Describe the socio-economic characteristics of the cassava flour and garri marketers in

the study area.

ii. Estimate the returns per naira on investment of marketing the selected cassava products.

iii. Determine the factors affecting the profitability of the selected cassava products.

iv. Describe the channels of marketing the cassava products.

v. Measure the constraints associated with marketing the products.

1.4 Statement of the Research Hypothesis

The study was guided by the null hypothesis:

H0: There is no significant relationship between the socio-economic characteristics of the

marketers and the profitability of the Cassava products.

1.5 Significance of the Study

Cassava is not fully utilized in Eastern Africa compared to West Africa (Nigeria, Ghana),

however, when properly marketed, Cassava and its derivatives can earn you extra income,

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provide employment opportunities and serve as a reserve food in times of scarcity. Cassava is

drought tolerant, easy to grow and simple to harvest. All parts of the cassava plant are valuable.

Cassava leaves can be used to make soup or as feed for livestock, the stems can be used for

planting more cassava, for mushroom production or as firewood, the root can be cooked and

eaten fresh or processed into flour. All these qualities make the processing and marketing of

cassava a very lucrative venture.

Apart from serving as poultry feeds, garri and cassava flour serve as industrial raw material for

the production of bakery products and other substances obtained during its processing, serve as

dextrin, dextrose glucose, lactose and sucrose. Food industries also make use of these cassava

derivatives. Cassava cubes are used mainly in the compounding of livestock feeds. Thus, there is

a very high demand for cassava products in both local and export markets (AdulAzeez, 2013;

Foundation for Partnership Initiatives in the Niger Delta, Foundation for Partnership Initiatives

in the Niger Delta, PIND, 2011).

In Nigeria, cassava has moved from a food crop to a cash crop produced on an industrial scale

and even exported (Obisesan, 2013). In a nutshell, the careful study and analysis of the

marketing of the Cassava derivatives, Cassava Flour and Garri, is significant, because it has

benefits in both individual and corporate welfare of farmers, thereby improving individual and

National Income. Employment generation, Industrial facilitation and even food security will be

improved by the heedful study of this subject. And finally, the fact that Nigeria is the largest

producer of Cassava, makes it necessary for us to consider the whole process in order to retain,

control and maximize comparative advantage.

1.6 Scope and Limitations of the Study

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The scope of the study covered Cassava Flour and Garri marketers and processers in the study

area (Port Harcourt Metropolis), all things being equal. The respondents of the study were

limited to Garri and Cassava flour marketers and traders in Port- Harcourt Metropolis.

The major limitations of this study include the financial problems encountered while carrying out

the research, the accessibility to journals, books and materials with the most appropriate

information regarding the subject matter and this particularly made the work challenging and

cumbersome. Also, the uncooperative attitude of some of the respondents, their inability or

unwillingness to read and understand the components of the questionnaire and supply adequate

and reliable information, posed a challenge, hence limiting information accessibility on my side.

The limitation of time was overcome by starting the research study early enough to avoid being

under any form of pressure, and the limitation of finance was overcome by investing my personal

funds and also certain gifts in kind, to actualize this work.

1.7 Organization of the Study

The research is organized in chapters. In all, there are five chapters, chapter one is the

introduction which gives the background of the study, problem statement, objective of the study,

hypothesis, the significance of the study, organization of the study and definition of terms;

chapter two is the literature review and contains theoretical, conceptual and empirical review of

literature; chapter three is the research methodology which contains detailed design method,

population and sampling procedures, method of data collection and analysis; chapter four covers

the results and discussions which contains the socio- economic characteristics, marketing

channels, profitability analysis, test of hypothesis and the marketing constraints; chapter five

contains the summary of the research work, conclusion and recommendation.

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1.8 Definition of Terms

Economic Analysis: in economic terms, economic analysis refers to a systematic approach to

ascertain what the optimum use of scarce resources is. Also, economic analysis involves

comparing at least two alternatives in achieving a certain goal under specific constraints and

assumptions. According to the Asian Development Bank, economic analysis is a means to help

bring about a better allocation of resources that can lead to enhanced incomes for investment or

consumption purposes.

Marketing: This simply refers to the various activities that are involved in making people or

general public aware of products and making sure those products are accessible and available to

be purchased.

Constraints: this refers to a limitation, hindrance or restriction to something.

Gross Domestic Product (GDP): this is the total market value of the goods and services

produced by a country’s economy during a specific period of time.

Marketing Channel: this covers all the people, organization and chain of activities required to

transfer the ownership of goods from the point of production to the point of consumption. It is

the way products get to the end user (the consumer).

Profitability Index: this is a financial tool in economics which tells us whether an investment

should be rejected or accepted. It uses the time value concept of money.

Socio- economic: relating to or concerning the interaction of social and economic factors.

Utilization: this refers to the action of making practical and effective use of something.

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 CHAPTER TWO

LITERATURE REVIEW

Literature review is a vital aspect of every research work and in the evaluation of the available

literature in the chosen topic area. Therefore, the literary review of this chosen study is divided

into: Theoretical Framework, Conceptual Framework, Evaluation of literature and Literature

Gap.

2.1 Theoretical Framework

In the cause of this study, there were different theories employed, applied and referred to, among

which are: Commodity chain Theory, theory of demand and supply and transaction cost theory.

2.1.1 Commodity Chain Theory

Commodity Chain Analysis (CCA) was developed by French Research Institutions as a neutral,

value-free technique applied to analyzing existing marketing chains for agricultural commodities

assessing how public policies, investments and institutions affect local production systems. It

consists of a quantitative analysis of inputs and outputs, prices and value added along a

commodity chain through agent accounts. A commodity chain is defined as ‘a network of labour

and production processes whose end result is a finished commodity’ (Hopkins and Wallerstein,

1986). Over time, different methodologies have emerged for their analysis. For the purpose of

analyzing policies, a chain is composed of a series of operations or transformations, a set of

agents and a system of markets (in terms of both physical flows and their monetary equivalents),

as well as the behaviour of agents as guided by their economic interests (Tallec and Bockl,

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 2005). CCA, is applied to the analysis of existing marketing chains for primarily agricultural

commodities assessing how public policies, investments and institutions affect local production

systems (FAO, 2004). CCA analysts have borrowed from different theories and methodologies,

including systems analysis, industrial organisation, institutional economics (old and new),

management science and Marxist economics, as well as various accounting techniques with their

roots in neoclassical welfare analysis (Kydd et al., 1996). The practical aspect of this approach

involves mapping out actual commodity flows and identifying agents and activities and aims at a

measure of inputs and outputs, prices and value added along a commodity chain. In this research

work, commodity chain analysis was helpful in two major important ways:

i. as a tool for setting out the complete financial accounts,

ii. as an accounting framework allowing for the systematic recording of a large part of the

information necessary for the proper economic analysis thus extending financial

accounting analysis of the various agents along the length of the chain.

Hence, this study will adopt this theory in identifying the marketing and processing channels,

including variations in price at various levels of processing and marketing of Cassava, and then

finally comparing them with the final price of the consumer.

2.1.2 Theory of Demand and Supply

The theory of demand and supply plays a vital role in the marketing of Cassava Flour and Garri.

The level of actual marketing activity going on in a market is determined primarily by the

interplay of the forces of Demand and Supply. The major determinants of the quantities

demanded and supplied for any goods and services depends on the structure and type of market

(Eastin and Arbogast, 2011) in a perfectly competitive market, where there are many consumers

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(buyers) and farmers (producers), the price mechanism is fully operational, simply put. The price

of goods and services are determined by the interplay of the forces of demand and supply. In

other words, the price of a commodity or service guides the choice of the quantity which will be

demanded of such commodity or service (all things being equal). Demand however, must be

differentiated from effective demand, in that while demand refers to the willingness to purchase

goods and services, effective demand entails a willingness backed with the ability (purchasing

power) to purchase. Therefore, demand refers to the quantity of goods and services which

consumers are willing and able to purchase at a particular price and given period of time.

Demand is actually a function of several variables or factors, therefore, the total quantities of

goods and services demanded at any given period of time, is a function of these various factors.

These factors include income of consumers, price of the commodity, consumer taste and

preference, price of substitute or complementary commodities, weather and climate, age,

advertisement and government policies amongst many others. The first four factors in the above

list are however often the most pronounced.

Similarly, supply is a factor playing an equally important role as demand in the marketing

process. The urge to sell goods and services describes supply. In more accurate terms, Supply

refers to the total quantity of goods and services that a producer is willing to sell at a given price

and period of time (Abbot and Makeham 1999).

According to Enabor (1999), supply could either be physical or economical. By the term

“physical supply”, we mean the availability of goods and services in a market, while economic

supply refers to the value (market price) of the available supply. This means that goods can be

physically available but economically unavailable. Economic unavailability refers to when the

prices of the physical supply are beyond the effective demand of the consumers. Supply like

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demand is affected by an array of factors such as the price of goods and services, cost of

production, productive capacity and the available technology (Boateng, Amfo, Abubakari and

Yeboah, 2016).

In a perfectly competitive market, the interactions of demand and supply functions, helps in

determining the prices of goods and services. The event of a rise in the price of a commodity, is

an incentive for producers to produce more of the commodities, to take full advantage of the high

prices. But otherwise, the high price is a disincentive for consumers and as such, the quantities

demanded of the goods will fall. This fall in demand is what forces producers to adjust (reduce)

the quantities of the commodities they produce, until the quantity demanded is equal to the

quantity supplied. As a corollary, a fall in prices of the goods and services acts as an incentive to

consumers to purchase more, while the producers on the other hand will supply less. This

process continues until equilibrium, which is a state where the quantity demanded equals the

quantity supplied, is attained in the market (Layade, Badmus and Ibe, 2017).

2.1.3 Transaction Cost Theory-

Transaction cost economics theory is understood as alternative model of organizing transactions

(governance structure- such as markets, hybrids, firms and bureau) that minimize transaction

costs (Williamson, 1991). Transaction costs are expenses incurred when buying or selling goods

or services. In easy terms, transaction costs represent the labour required to bring goods and

services to the market, giving rise to entire industries dedicated to facilitating exchanges. This

theory is very vital because transaction costs are one of the key determinants of net returns and

different asset classes have different ranges of transaction costs, hence investors should select

assets with costs that are at the low end of the range for their types. Interestingly, time and

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labour required to transport goods or commodities across distances, are two resources that also

constitute transaction cost.

High transaction costs diminish the returns of the agribusiness, and not only so, it also reduces

the amount of capital available for investment. On the other hand, when they diminish, an

economy becomes more efficient, making available more capital and labour to produce wealth

and make profit. Transaction cost theory posits that the optimum organizational structure is one

that achieves economic efficiency by minimizing the cost of exchange. This theory therefore

suggests that each type of transaction produces coordination costs of monitoring, controlling and

managing transactions.

Williamson (1991) has defined transaction cost as broadly the costs of running the economic

system of firms. He has argued that such costs are to be distinguished from production costs and

that a decision-maker can make a choice to use a firm structure or source from the market by

comparing transaction cost with internal production costs. Thus, cost is the primary determinant

of such a decision.

Transaction cost theory predicts that transaction cost increases with distance, market

concentration, systemic complexity, and decline with standardization quality and quantity. The

transaction cost affects level of market participants of producers and these costs includes access

to information, road access, distance to market and time of payment (Opata, 2012; Agbugba,

Nweze, Achike and Obi, 2013).

2.2 Conceptual Framework

2.2.1 Concept of Marketing

The word marketing, is a derivation of the Latin word, mercatus meaning market-place or

merchant. It first appeared in dictionaries in the sixteenth century where it referred to the

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process of buying and selling at a market. According to Philip Kotler (father of modern

marketing), marketing is the science and art of exploring, creating and delivering value to satisfy

the needs of a target market at a profit."

"Marketing management is 'the art and science of choosing target markets and getting, keeping,

and growing customers through creating, delivering, and communicating superior customer

value.

The American Association of Marketing define marketing management as "the process of

planning and executing the conception, pricing, promotion and distribution of ideas, goods and

services in order to create, exchange and satisfy individual and organizational objectives

(Grönroos, 1989).

Marketing converts and returns the investment quite quickly if done the right way. In order to get

there rather sooner than later and make the most out of it, you need to consider designing your

own marketing concept.

A marketing concept can also be seen as a strategy that companies and marketing agencies that

work for companies, design and implement in order to satisfy customers’ needs, maximize

profits, satisfy customer needs and beat the competitors or outperform them.

Marketing is the process of getting potential clients or customers interested in your products

and services. The keyword in this definition is "process". Marketing involves researching,

promoting, selling, and distributing your products or services. These days, marketing is one of

the key aspects of business.

2.2.2 Concept of Agricultural Marketing

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The term agricultural marketing is composed of two words- agriculture and marketing.

Agriculture, generally means growing and/or raising of crops and livestock while, marketing

encompasses a series of activities involved in moving the goods from the point of production to

point of consumption. Many scholars have defined agricultural marketing and incorporated

essential elements of time, place, form and passion utility. Some of the definitions of agricultural

marketing are given below: Human activity directed at satisfying the needs and wants through

exchange process ( Kotler, 1990).

The study of agricultural marketing comprises all the operations, and the agencies conducting

them, involved in the movement of farm produced foods; raw materials and their derivatives,

such as textiles, from the farms to the final consumers, and the effect of such operations on the

farmers, middlemen and consumers (Thomsen, 1990). This definition does not include the input

side of agriculture. Agricultural marketing is a process which starts with a decision to produce a

saleable farm commodity, involves all the aspects of market structure or system, both financial

and institutional, based on technical and economic considerations, and includes pre- and post-

harvest operations, assembling, grading, storage, transportation and distribution (Arene, 2003).

Agriculture fulfils the basic need of human kind by producing food. About a century ago, farmer

used to produce food commodities mostly for self-consumption or for exchange with others

(cash or kind) mostly in the same village or nearby places. They were primarily self-reliant. But

now, production environment has changed considerably from self- reliance to commercialization.

Agricultural marketing brings producers and consumers together through a series of activities

and thus becomes an essential element of the economy. The scope of agricultural marketing is

not only limited with the final agricultural produce. It also focuses supply of agricultural inputs

(factors) to the farmers.

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2.2.2.1 Marketing Channels

The Channel of distribution of a product is the path through which it passes from the raw state to

its finished form (Olukosi and Isitor, 1990). Consequently, the longer the channel of distribution,

the higher the selling price (Ojiugo, 1984). This affects the spatial price variations. Market

channel according to (Kohl and Uhl, 2002), is defined as the sequence of intermediaries through

which goods pass from the producers to the consumers, thus the process is a form of movement,

series of actions and events that take place in the marketing sequence. The participants in this

distribution can be from two to six.

The marketing channel for imported foodstuff is very well defined and developed. Companies

move imported food from seaports to various urban and rural markets in Nigeria. Most studies

show that there is some level of concentration in the rural and urban foodstuff market in Nigeria.

The degree of concentration at the wholesale level is greater than that at the retail subsector

(Adekanya, 1998: Okereke and Anthonio, 1988; Okoh, 1999).

In addition, trade floe is unidirectional. In practice, urban wholesalers and retailers often travel to

producing areas to make purchases from producers or rural assemblers / wholesalers, while

others purchase directly from the farmers’ sites of production. Wholesalers are largely

responsible for the intra and inter – state flow of foodstuff in Nigeria. Most wholesalers purchase

the foodstuff from rural assemblers or commissioned agents. Some buy directly from producers

and others buy from a combination of other wholesalers and commissioned agents. They sell to

urban retailers, urban consumers, rural wholesalers and retailers.

2.2.2.2 Marketing Functions

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 According to Olukosi and Isibor (1990), marketing function can be defined as specialized

services that have to be performed in the process of moving a product from the producer to the

consumers. Kohl (2002), classified marketing function into three major groups. These are:

i. Exchange functions

ii. Physical function

iii. Facilitating functions

1. The Exchange Function: this involves the act of buying and selling. It is the process of

the transfer of goods from hand to hand, thereby creating possession utility. The buying

and selling function are performed with a judgement of value usually expressed in prices

placed on the goods and services involved.

According to Alex (1990), the buying function in marketing involves a number of activities,

which include:

1. Determination of the kind of goods.

2. Determination of the quality of goods.

3. Selecting proper services of supply and buying policies and practices.

The selling function on the other hand, involves advertising and promoting activities to influence

or create demand. This is called merchandising (Olukosi and Isibor, 1990).

(ii) Physical Function: The physical function was defined by Olukosi Isitor and Ode (2007), as

those services that ass form, time and place utility to the commodity. The physical function

includes storage, transportation and processing. They are those activities involving handling,

movement and physical change in the natural form of the actual commodity. These activities

create time, form and place utility to the product.

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Processing adds form utility, for instance: transforming cassava into a granular starchy mass

known as garri, or even to ethanol for producing alcohol. Storage adds time utility to a product

by holding it from production and distributing it to the market overtime as at when needed. The

storage function occurs at all levels in the marketing channels of garri and cassava flour.

Transportation adds place utility to a commodity. Transportation includes moving commodities

from the farm to their various market destinations. Obaze (2000), in her studies considered

transportation cost to include payments for the use of transport facilities, opportunity cost of

using factor inputs in transporting the food commodities rather than for other purposes and

allowance for risk of loss.

The cumulative effect of the foregoing market function, often translate to high cost of marketing

and add price differentials at the various markets.

(iii) Facilitating Function: The facilitating functions make possible the smooth performance of

the exchange and physical functions. Olukosi and Isitor (1990), classified the facilitating

function

as sorting and adding standard, risk bearing, insurance, financing and market intelligence.

Sorting

and grading are performed in the marketing of bulky products like garri. Alex (1990), explained

that facilitating function improves the performance of the marketing system by increasing the

operational and price efficiency.

2.2.3 Processing Methods of Cassava Products

The Processing and marketing methods of cassava are discussed under the headlines below:

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2.2.3.1 Method of Garri Processing

Garri is a traditional West African food among the low-income groups especially in Nigeria. It is

cream white granular flour with slightly fermented and slightly sour taste made from fermented,

gelatinized fried cassava tubers. It is widely known in Nigeria and other West African countries.

Sani et al. (1995) revealed that about 28%, 41% and 31% of Nigerian communities consume

garri once, twice and thrice daily respectively. According to Okpokiri et al (1983), garri is a

granular pre-gelatinized carbohydrate rich food, which contains up to 80% carbohydrate 0.2-2.9

percent and 1.2 - 1.5 percent protein. Hahn (1989) asserted that in garri production, variety,

location, the period and method of preparation, including fermentation play very important roles

in determining the quality and level of acceptability of the product. The processing of cassava

into garri involves certain units of operation. Fresh tubbers are peeled, washed and grated. The

grated pulp is put in porous sacks, which are weighted down with heavy stones for 3-4 days to

expel the water from the pulp while it is fermenting. In some areas, hydraulic jacks are used to

expel the water from the grated cassava. The dewatered and fermented pulps are sieved and the

resulting fined pulp is toasted in a frying pan. Palm oil is sometimes added during toasting with

constant stirring so as to present all granules to heat, to prevent the pulp from lumping and

burning. This has an additional effect of changing the colour of product from white to yellow.

Fermentation imparts an acidic taste to the final product (Enwere, 1998; Alinnor 2002).

Also, for garri processing, cassava is usually peeled with knives, although mechanical peelers

could also be used for the same purpose. She said that after peeling, the cassava roots are washed

and grated using mechanical grater, to reduce them to pulp or mash which is put in cloth bags

and fermented from 1-5 days. She continued that the fermented cassava mash is dewatered by

expression, using either a hydraulic press or by hipping heavy stones on them or tying the bag

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with a rope and beams of timber or wood. She affirmed that at the end of dewatering, the cassava

is sufficiently dry to be sifted to remove the fibrous materials from the cake. The sifted cake is

toasted in large frying pans with constant stirring, so as to present all granules to heat, to prevent

lumping and burning. She concluded by saying that toasting gelatinizes the starch in the wet

meal, forms the garri granules and reduces the moisture content to the level that the garri will be

considered dry enough to be stored for a long time.

The steps in garri processing have various advantages. Peeling removes dirt, grating reduces the

solid cassava tubbers to pulp or mash, which aids the fermentation and allows dewatering

through expression. Dewatering removes the liquids and some of the cyanogenic glycosides and

hydrogen cyanides released during enzymatic fermentation of the cassava pulp (Ejiofor and

Okafor 1981).

According to Ejiofor and Okafor (1981) during fermentation, some flavor compounds such as

aldehydes, ketones, acid, alcohol and others are formed, and the cryogenic glycosides are

hydrolyzed to liberate hydrogen cyanide.

2.2.3.2 Method of Cassava Flour Processing

When it comes to how to process cassava into cassava flour, we have to stress the current two

different technologies: One is the dry method, another is the wet method.

Dry method is a traditional method for cassava flour processing. It is very simple. The main

procedure is: fresh cassava harvested and peeled by manual work, then making pellets of chips,

drying the cassava chips, finally mill the dry cassava into powder directly.

The machine used by dry method cassava flour processing mainly includes cassava peeler, chips

or pellets making machine, drying machine and fine milling machine.

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 While, for wet method, it needs fresh cassava cleaning and peeling, then using hammer mill or

rapper to ensure cassava to be well ground into pulp. Then, dewater the cassava pulp into cake

and break it with a hammer crusher. Finally, dry wet cassava flour in a flash dryer directly. The

whole processing needs around 15mints. If higher cassava flour fineness is required, it is

essential to match a sieving machine to separate the coarse powder. With the wet cassava flour

processing technology, we can get the high-quality cassava flour.

Cassava flour processing machine used in wet method includes: Hopper, belt conveyor, dry

sieve, paddle washer, cutting machine, plate frame filter press, hammer mill, flash dryer and

sieving machine and so on.

With different processing technical, the final cassava flour quality is different, and are used in

different industries. The quality of cassava flour produced dry method is relatively low which is

often be used for animal feed, industrial ethanol production etc. While the cassava flour made by

wet technology is high in quality which is normally used in food industry, like biscuit, bread etc.

With technology advances and people's high standard for cassava flour quality, the wet

technology gradually becomes the mainstream processing technology in high quality cassava

flour processing. Therefore, as an investor from the perspective of long-term development, the

choice of wet processing technology is a good choice. Doing machinery as a professional

cassava processing machine manufacturer, wet technology is mature in process and can process

high quality cassava flour with high efficiency

2.3 Empirical Literature

The empirical literature was discussed under the following headings:

i. Economic and Nutritional Importance of Cassava Flour and Garri

21
ii. Problems of Cassava Flour and Garri Marketing.

2.3.1 Economic and Nutritional Importance of Cassava Flour and Garri

Cassava flour is made by grating and drying the fibrous cassava root. It’s a great substitute for wheat

and other flours. Cassava flour is very rich in carbohydrates. A cup of cassava flour (285 grams) has

about 110 grams of carbohydrates, 5 grams of fiber, and 4.5 grams of sugar. It’s also rich in vitamin

C, with one cup containing close to the recommended daily value. Cassava can replace wheat

flour. It can replace grain-based flour or a gluten-free flour mix. It doesn’t have a strong taste, which

makes it great for baking, thickening sauces, or making burger patties. Cassava flour is gluten-free. It

is a great choice for gluten-free baking, ideal for people who have gluten sensitivities or disorders.

Cassava flour is also low in calories, fat, and sugar. Compared with other gluten-free flours, such as

coconut or almond, cassava flour has a low-fat content. It has a high-water content and a lower

calorie density than flours like corn, plantain, rice, coconut, sorghum, and wheat.

On the other hand, Garri contains several nutrients like protein, iron, carbohydrate, Vitamin A, B,

and C. These nutrients perform a range of important health functions such as boosting eyesight,

improving digestion, strengthening antibodies and aiding growth.

Garri and Cassava flour extracts can be used to produce drugs, food supplements, animal feed

and provides income for farmers, in addition to foreign exchange for National revenue.

2.3.2 Problems of Cassava Flour and Garri Marketing

Despite the rapid growth in cassava production, the cassava subsector in Nigeria is still

constrained by a number of factors, namely pests and diseases, agronomic problems, shortage of

planting materials, inconsistent policy measures, poor market access, limited diversification of

22
processing options, inefficient extension delivery system and inadequate access to improved

processing technology.

Marketing can pose a problem for poor farmers who may not have resources to transport their

commodities to the market, especially those living in villages with poor feeder roads. Typically,

farmers transport their farm produce to the market on heads as head loads, on bicycles or in

lorries. With poor accessibility of markets in Nigeria, the marketing of cassava can be

particularly difficult because of its bulky nature, especially if it is not processed. Transportation

of fresh tubers from farm to processing sites therefore becomes critical for quality and cost

reasons; such that transportation is a major cost component in cassava marketing. Some of the

other challenges involved in cassava flour production and garri marketing include inadequate

funding, lack of adequate support to the marketing component, inadequate clean water and lack

of improved mechanized cassava processing equipment.

2.4 Evaluation of Literature

From the literary review, the bulk of studies was on the processing and production of Cassava

derivatives; cassava flour and garri, while also analyzing their marketability and importance.

The researcher ran through different scholarly works and literature on related topics and gleaned

from their ideas to come up with some sub-topics utilized in this literature. The literature gap in

this work intends to fill is to provide the profitability and market analysis of cassava flour and

garri, with reference to the Port Harcourt Metropolis of Rivers State, with the desire to inform

entrepreneurs, small business owners and policy makers of the opportunities or otherwise

involved in this venture.

23
 CHAPTER THREE

METHODOLOGY

3.1 Area of the Study

Port Harcourt is the capital and largest city of Rivers State, Nigeria and the fifth-largest city in

Nigeria after Lagos, Kano, Ibadan and Benin City. Port Harcourt Metropolis has an estimated

land mass of 360 km2 (140 sq mi), lies along the Bonny River and is located in the Niger Delta.

As of 2016, the Port Harcourt urban area has an estimated population of 1,865,000 inhabitants.

(Demographia; World Urban Areas, 2016). This makes it the largest city in the South-South

geopolitical zone of the Niger Delta Region (Osuande, 2008). Port Harcourt metropolis is located

between Latitude 4o45’N and Latitude 4o55’N, and Longitude 6o55’E and Longitude 7o05’E of

the Equator. The urban area (Port Harcourt metropolis), is actually made up of Port Harcourt

local government area itself and parts of Obio-Akpor and Eleme, accordingly. The most common

24
markets within the area includes: Oil mill, Mile 1 and Mile 3 markets. There are many different

occupations carried out by its residents although it is a major industrial centre.

3.2 Population of the Study

Fig 3.1: Map of Study Area
The Sample frame of the study comprised of marketers and dealers of garri and cassava flour in

the study area, which is estimated to be above 70 marketers of cassava flour and 86 marketers of

garri.

3.3 Sample Procedure and Sample Size

The sampling size is often a compromise between what is desirable and what is feasible. In this

research work, multi stage sampling technique will be used in selecting the sample size for the

study. In the first stage, eight (8) garri and cassava flour markets will be chosen from the total

number of markets in the study area, owing to the fact that they control the highest sales volume

of garri and cassava flour in Port Harcourt Metropolis. In the second stage, fourteen (14)

marketers were chosen from each of the markets already selected from different locations in

Rumuokwurusi, Diobu, Borokiri/Town, Rumuokoro and Iwofe. In total, 112 respondents

(marketers) formed the sample size of the study.

25
To determine the sample size, Taro Yamene formula was used and is given as:

n = N
___________
1 + N (e2)

Where
n = Sample size
N = Population size
e = Level of significance

n = 156
____________________
1 + 156 (0.0025)

= 156
___________
1 + 0.39

= 112
Table 1: Summary of Procedure for Sampling

_______________________________________________________________________

Name of Market Wholesalers Retailers Total No

Oil Mill 7 7 14
Mile 1 7 7 14
Mile 3 7 7 14
Creek Market 7 7 14
Elelenwo Market 7 7 14
Tank Market 7 7 14
Iwofe Market 7 7 14
Rumuokoro market 7 7 14
TOTAL 56 56 112
Source: Researcher’s Initiative, 2021

3.4 Method of Data Collection

The data was collected from primary source. Copies of structured questionnaire were used as the

instrument for data collection. The copies of the questionnaires were structured according to the

specific objectives of the study before administering them to the respondents in the study area.

3.5 Validity of Instrument

26
Validity of instrument means the ability of a research tool such as a questionnaire to generate

responses that are required for the specified objective of the study (Cookey, 1998). The

questionnaire and other instruments for the study will be validated by the project supervisor and

other lecturers in the Department of Agricultural and Applied Economics, Faculty of Agriculture,

Rivers State University.

3.6 Method of Data Analysis

Descriptive and inferential statistics will be employed in analyzing the data. Descriptive statistics

will involve the use of means, percentages, table and frequency distribution. Inferential statistics

will involve the use of ordinary least squares (OLS) i.e. multiple regression analysis. Objective

(i) and (iv) will be realized using means, percentages, tables and frequency distributions in

analyzing relevant data. Objective (ii) will be actualized using return on investment (ROI) or

gross margin analysis. More so, objective (iii) was analyzed using multiple regression, while

objective (v) will be achieved using Likert Scale.

3.6.1 Rate of Return on Investment (RRI)

The formula can be expressed as = Net Income (NI)

Total Cost (TC) ………………………………. (1)

The net income was substituted by using the formula below

Net Income = TR-TC ………………………………….. (2)

TC = Total cost of cassava derivatives (flour and garri)

TR= Total revenue from cassava derivatives (flour and garri)

TFC= Total fixed cost such as cost for frying pan, sieve, bags, frying spoon, tripods stand,
27
 knives, etc.

TVC= Total variable cost such as fresh tuber, transportation, fire wood, labour and oil, etc.

TC = Total Variable Cost (TVC) + Depreciation.

Depreciation = Total cost of assets - salvage value …………………………………… (3)

Useful life

3.6.2 Multiple Regression Analysis

The implicit function for the regression model for objective (iii) is given as:

YS = f (X1, X2, X3, X4, X5, X6, X7)

f(YS) = a0 + a1XI + a2X2 + a3X3 + a4X4 + a5X5 + a5X6 +a7X7 + U

Where;

YS = Profits from marketing Cassava derivatives (flour and garri)

X1 = Age of the farmer; X2 = Educational Qualification; X3=Marital Status; X4= Sex; X5 =

Capital; X6 = Experience; X7 = Household size, U = Error Term, a0 = Intercept;

a1 - a7 = Regression coefficient.

3.6.3 Four (4)-Point Likert Rating Scale

To measure the major constraints facing cassava flour and garri marketers in the study area, four

(4)-point Likert rating scale will be graded as Strongly Agree (SA) = 4; Agree (A) = 3; Disagree

(D) = 2; and Strongly Disagree (SD) = 1. The mean score of respondents based on the 4-point

rating scale will be computed thus,

28
4+ 3+2+1 10
= =2.50 cut-off point
4 4

Using the cut-off point of 2.50 for decision making, items with mean values of 2.50 and above

was considered as constraints facing the flour and garri marketers in the study area. On the other

hand, items with mean values less than the cut-off point value of 2.50 will be considered as not

being constraints to flour and garri marketing in the study area.

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Longman Group Ltd, London.
AbdulAzeez, I. (2013). Cassava export and local utilization in Nigeria top secrets; The Thy
Consulting Thursday May 30th, 2013
Adebayo, K. and M.A. Sangosina (2005). Perception of the effectiveness of some cassava
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20th October, 2005, pp 234-235.
Adekanye, T. O. (1988). The Markets for Foodstuff in Western Nigeria. Readings in Agricultural
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Adesina, B.S. & Bolaji, O.T. (2013) Effect of milling machines and sieve sizes on cooked
cassava flour quality, Nigerian Food Journal, 31(1), 115–119.
Agbugba, I.K., Nweze, N.J., Achike, A.I. & Obi, A. (2013). Market Structure, Conduct, Channel
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Ani, S.O. & Agbugba, I.K. (2017). Economics of Marketing of Cassava Derivatives (Flour,
Garri and Chips) in Uzo-Uwani Local Government Area, Enugu State, Delta
Agriculturists, 9(1), 46-54.

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Arene, C.J. (2003). Introduction to agricultural marketing analysis and policy, Fulladu
Publishing Company, Enugu
Asogwa, B.C., Ezihe, J.A.C. & Ater, P.I. (2013). Socio-economic analysis of cassava marketing
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_of_Nigerian_Agric_ Sector_Oxfam_Novib_november_2008.pdf on
Boateng, V.F., Amfo, B., Abubakari, A. &Yeboah, O.B (2016). Do Marketing Margins
Determine Local Leafy Vegetables Marketing in the Tamale Metropoils? African Journal
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Cassava Report Final (2013). Action Plan for a Cassava Transformation in Nigeria. From:
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Enwere, N.J. (2001). Extension implication of the technological capabilities of the baking
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FAO (2004). The Global Cassava Development Strategy. Retrieved March 14th, 2005
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yo169eoo.htm (accessed on March 14th, 2005).
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APPENDIX

STRUCTURED QUESTIONNAIRE

Dept. of Agric. and Applied Economics,

Faculty of Agriculture,
River State University,
Nkpolu-Oroworukwo,
PMB 5080.
Port Harcourt.

Dear Respondent(s),

REQUEST FOR COMPLETION OF QUESTIONNAIRE

I am a final year student of the above-mentioned university and department currently carrying
out a research on the Profitability Analysis of Cassava Flour and Garri Marketing in Port
Harcourt City Metropolis
31
You are please requested to respond to the questions as objectively as possible. Every
information supplied will be treated as confidential and will be used strictly for this research.

Thank you.

Yours faithfully

WALI, Chizunum Desmond

(Researcher)
0907 694 5002

STRUCTURED QUESTIONNAIRE

INSTRUCTION: Please tick () and fill the gaps where necessary.

SECTION A: DATA ON SOCIO-ECONOMIC CHARACTERISTICS OF RESPONDENTS

1. Name of Market: (a) Oil Mill (b) Mile 1 (c) Mile 3 (d) Creek Market
(e.) Elelenwo Market (f.) Tank Market (g.) Iwofe Market
(h) Rumuokoro market

2. Sex: Male  Female 

3. Age: (a) 18-20 years (b) 21-29 (c) 30-39 (d) 40-49 (e) 50years and above
4. Marital status: (a) Married (b) Single (c) Divorced (d) Widow(ed)
5. Number of Children in the family: (a) nil (b) less than 5 (c) 6-10 (d) 10 and above

6. Educational background (a) non-formal  (b) primary education  (c) secondary 

(d) undergraduate  (e) graduate 

7. Is cassava business your primary occupation? Yes  no 

8. If no, please indicate your primary occupation. (a) Farming  (b) Trading 

32
 (c) Trading  (c) civil service  (d) hunting 

9. How many years have you been in the cassava business (a) 1-5  (b) 6-10 

10. What is your enterprise capital size in naira equivalent? (a) 1000-50000 

(b) 6000-10000  (c) 11000-15000  (d) 16000-20000  (e) 21000-25000 

SECTION B: DATA ON THE METHODS OF PROCESSING CASSAVA DERIVATIVE

11. Which cassava derivative do you process (a) garri  (b) flour 

12. How do you process the following cassava derivatives?

Derivatives Method: Traditional Mechanized

(i) Garri  

(ii) Flour  

13. How long does it take to process the following derivatives?

Days Weeks

(i) Garri…………………….  

(ii) Flour………………………  

SECTION C: MARKETING CHANNEL OF SELECTED CASSAVA DERIVATIVES

14. From where do you get your cassava tubers? (a) Farm gate seller 

(b) wholesaler in the farm (c) wholesalers in the market  (d) retailer  (e) your farm 

15. Do the wholesaler come to the processing cite to buy processed cassava derivatives

Yes No 

15.1. If no, where do they buy processed cassava derivatives? ……………

16. Do you sell to retailers? Yes  No 

17. If yes, where do they buy processed cassava derivatives?

(a) Processing site  (b) Store  (c) Home of processors  (d) Market 

18. What do you use to sell the processed cassava derivatives?

33
 (a) Bag  (b) Basin  (c) Plates  (d) cups 

SECTION D: COMPARE THE RETURN PER NAIRA INVESTMENT OF

PROCESSING N10, 000 OF CASSAVA TUBERS IN TO THE FOLLOWING CASSAVA
DERIVATIVES (Flour and garri)
19. How much do you spend in the following processing activities?
(i) For Garri:
1. Transporting one bag of cassava tuber from the point of purchase to the processing
plant/site N…………………….25kg bag/basket
2. Peeling N…………………….25kg bag/basket
3. Washing N…………………….25kg bag/basket
4. Grating N…………………….25kg bag/basket
5. Dewatering N ……………………25kg bag/basket
6. Sieving N…………………… 25kg bag/basket
7. Garri frying N ……………………25kg bag/basket
8. Other N…………………….25kg bag/basket
For Flour:
1. Transporting N…………………………25kg bag/basket
2. Peeling N……………………….25kg bag/basket
3. Shredding N……………………….25kg bag/basket
4. Cost of water for soaking one basket of shredded cassava N………….25kg bag/basket
5. Milling N …………………………25kg bag/basket
6. Sieving N …………………………25kg bag/basket
7. Packaging N …………………………25kg bag/basket
8. Other cost incurred N ………………… 25kg bag/basket

20. How much do you buy one bag of cassava tuber used for processing of the following
cassava derivatives?
(a) Garri N……………………..25kg bag/basket
(b) Flour N…………………….25kg bag/basket

21. How much do you sell one bag of?

(a) Garri N……………………..25kg bag
(b) Flour N…………………… 25kg bag

34
22. How much is the cost of transporting the following cassava derivatives to the selling point?
(a) Garri N……………………..25kg bag
(b) Flour N…………………… 25kg bag
SECTION E: COMPARE THE PROFITABILITY OF THE SELECTED CASSAVA
DERIVATIVES IN THE STUDY AREA
23. What is the processing cost of N10, 000.00 worth of cassava roots used for processing of the
following derivatives?
(a) Garri N………………….
(b) Flour N…………………….

SECTION F: THE DETERMINANTS OF PROFITABILITY OF THE SELECTED

CASSAVA DERIVATIVES IN THE STUDY AREA
24. Does your marital status determine the profitability of cassava derivatives of your choice
Yes No
25. Does the number of family size determine the profitability of your choice?
26. Does your age determine the profitability of cassava derivative of your choice?
Yes No
27. Does your gender determine the profitability of cassava derivative of your choice?
28. Does your year of experience determine the profitability of cassava derivatives of your
choice?
Yes No
29. Does your level of education determine the profitability of cassava derivatives of your
choice?
Yes No
SECTION G: CONSTRAINTS ASSOCIATED WITH MARKETING CASSAVA
DERIVATIVES.
Tick () as appropriate.
30.
35
S/N Constraints SA A SD D

i Lack of finance

ii Lack of/inadequate processing Facilities

iii Sourcing for labour

iv Marketing problems

v Transportation problems

vi Lack/inadequate storage facilities

vii Cost of frying pan

36