FINANCIAL VIABILITY OF OUTGROWER SEED PRODUCTION IN NORTHWEST AND NORTHCENTRAL NIGERIA

Abstract

The study was conducted to assess financial viability of outgrower seed production in Northwest and North-central, Nigeria. Multi-stage sampling technique was used to select 394 respondents for the study. Structured questionnaire complemented with interview schedule was employed to collect primary data. Data collected were analysed using farm budgeting techniques. The results showed that rice, maize and soybean seed production enterprises are financially viable for outgrowers in North-Central and North-West Nigeria with net return of (₦ 641,684;₦ 671,840),(₦ 422,060;₦ 352,900) and (₦ 451,500;₦ 269,440), respectively although rice and maize showed higher profitability as compared to soybean. The study recommended that Seed companies should offer value-added services such as agronomic advisory, soil testing, and tailored fertilization plans. These services can help farmers make informed decisions, enhancing productivity and consequently, profitability.