Economic Effects of Marketing Processed Soybeans on Poverty Alleviation in Nigeria

Abstract

This study analysed the economic effects of marketing processed soybeans on poverty alleviation in Nigeria. Specifically, the study sought to: describe the socio-economic characteristics of soybean processors; analyse the economic effects of marketing processed soybeans on poverty alleviation; examine the processing activities performed by respondents in the study area; determine the costs and returns associated with marketing processed soybeans in the study area; and identify the problems associated with soybean-processing enterprises in the study area. Purposive and random sampling techniques were employed to select a total of 480 soybean processors, comprising 240 soycake and 240 soymilk processors. Data were collected using well-structured questionnaires. The study identified the economic effects of marketing processed soybeans on poverty alleviation as increased market value (66.4%), higher income (72.20%), creation of small-scale jobs (73.2%), regular weekly profits (75.0%), extended shelf life (51.1%), and stronger trading ties (43.3%). Budgetary analysis showed that the soymilk enterprise generated a gross margin of ₦87,406.00 per processing round, whereas the soycake enterprise generated a gross margin of ₦40,080.40 per processing round. Soybean processing in the form of soycake and soymilk was profitable, with benefit-cost ratios greater than one (1.36 for soycake processors and 1.66 for soymilk processors). Multiple regression analysis showed that the most significant variables influencing returns to the soymilk enterprise were the cost of soybeans and respondents' years in the soybean processing business, while those influencing returns to the soycake processing enterprise were the cost of soybeans, technology, and the cost of other ingredients used in soycake processing. The study also revealed a positive and significant relationship between processing technique and enterprise returns. The study concluded that soymilk processing is more profitable than soycake processing in the study area. It is recommended that, to reduce rural poverty, local value addition be strengthened, cooperative networks be developed, and smallholders be connected directly to industrial buyers.