Market Participation and Value Chain of Cassava Farmers in Abia State

Abstract

In recent times there has been emphasis on value chain development especially in Africa so as to allow farmers derive maximum benefit from farm produce. This study therefore examined market participation and value chain of cassava farmers in Abia state, Nigeria; using primary data obtained from 135 cassava farming households selected through application of multistage randomized sampling technique. Data were analysed by descriptive statistics, multinomial logit model and principal component analysis (PCA). The results showed that 42.92% of the farmers added value to their produce by processing into garri while 67% sold unprocessed produce at the local, farm gate and contract markets. However, net margin and profitability analysis showed that the net return on investment (ROI) of unprocessed/fresh cassava, and processed garri marketing were 1.68 and 2.36 respectively. Results of the multinomial logit model showed that marital status, level of education, distance to the market, farm size and transaction cost significantly influenced market participation in cassava market while age, marital status, household size, level of education, distance to the market, market information, farm size, transaction cost and output significantly influenced participation in garri market. The major constraints to farmers’ participation in cassava value chain were high cost of processing cassava, high transaction cost, poor coordination among actors in the value chain, lack of storage facilities, poor road network, price fluctuation, high cost of cassava tubers and poor access to market information. The study recommends that factors such as cassava product pricing, and market information should attract policy attention to give boost to cassava value chain market participation; and also eliminate impediments such as infrastructural inadequacy; enhance the performance, and yield profits and income for farmers. The study recommended that factors such as cassava product price, market information and cooperative membership should attract policy attention to give boost to cassava and garri market participation.