Economic Analysis of Locust Bean Seeds Processing and Marketing in Ekiti State, Nigeria

Abstract

This study estimated the economic analysis of the processing and commercialization of locust beans in Ekiti State, Nigeria. Using primary data and a multistage sampling method, 240 respondents were selected for the study. The collected data were analyzed using descriptive statistics and an inferential statistical technique, such as regression analysis. The technique of gross margin analysis was also used to assess the profitability of processing and marketing locust beans in the study area. Most respondents (75.8 percent) utilized the traditional method of processing, and all respondents engaged in wholesale and retail marketing of locust bean seeds. The processing and marketing locust beans business was profitable, with a weekly gross margin of ₦44,180. Similarly, the ratio of benefits to costs was 1.71. This indicates that the processing and marketing of locust beans are profitable in the studied area, as for every 1 invested, 1.71 will be gained. The coefficient of determination was 0.93. The regression analysis reveals that age, quantity processed, and stall rent coefficients were positive, while marital status, years of experience, and transportation cost were negative. Given that the processing and marketing of locust bean seeds are profitable, more locust bean trees should be cultivated and planted to increase the quantity of processed locust bean seeds and sales revenue.