PROFITABILITY OF RICE PROCESSING BY WOMEN IN LAVUN LOCAL GOVERNMENT AREA OF NIGER STATE

Abstract

ABSTRACT The study examined the sources of finance and profitability of rice processing by women in Lavun Local Government Area of Niger State. To achieve the objectives of the study, stratified random technique was used to select 30 rice processors belonging to cooperative societies and 30 non-members. Rice processing input-output data were then collected from the selected processors in single-visit interviews using an interview schedule. The collected data were analyzed using descriptive statistics and a farm budgeting model. The student T statistic was also used to test for significant differences where appropriate. Results of the study revealed that majority of the processors relied on money-lenders for credit with only very few having access to formal credit. The result further showed that rice processing was profitable and that there was no significant difference between the gross margin obtained by cooperative members and non-members. However, processors milling with electric mills realized significantly (P<0.01) higher gross margin than those using diesel mills. Some of the constraints faced by the processors include poor transportation, inadequate investment capital, frequent power failure, scarcity of fuel wood and water shortage. Therefore. Linking villages in the area with good roads, increasing access of processors to formal credit, connecting the villages to national grid, introduction wood efficient stoves and providing potable water in the area would further increase profitability of rice processing.