Profitability of indigenous banana/plantain snack (dodo-ikire) among processors in Irewole Local Government Area of Osun State, Nigeria

Abstract

The study assessed the profitability of indigenous banana/plantain snack (dodo-ikire) among processors in Irewole Local Government Area of Osun State, Nigeria. It described the socio-economic characteristics of the respondents, examined the forms of processing and packaging of banana/plantain, determined its profitability, and identified its constraints. A two-stage sampling procedure was used to select 100 respondents for the study. Data collected through questionnaire was analysed using descriptive and inferential statistics. Gross margin analysis was used to determine the profitability of the enterprise. The mean of the age the respondents was 51.2 years with a majority being married (90%) and who solely processed over ripe banana into local snacks (70%). The results of gross margin analysis also revealed that total revenue, total variable cost, and gross margin were N487,650, N331,694 and N155,956, respectively. The main constraints to banana processing were inadequate storage facilities and lack of credit facilities. Ordinary least square estimation showed that educational background contributed positively to gross marginal profit while transportation and labour costs contributed negatively to gross profit of indigenous banana/plantain snack. The study concluded that the enterprise was profitable and recommended that relevant stakeholders should address the various constraints limiting its development and processors should constitute themselves into viable cooperatives to overcome some of the constraints.