DETERMINANTS OF PROFITABILITY OF SMALL-SCALE PLANTAIN PROCESSING ENTREPRENEURS IN OSUN STATE, NIGERIA

The study empirically evaluates the profitability of small-scale plantain processing entrepreneurs in Osun State, Nigeria. Cross-sectional data were employed for the study, while a multi-stage sampling procedure was used to randomly select 120 respondents. Descriptive statistics, gross margin, and Ordinary Least Square (OLS) were used for the analysis of the data. The results showed that the enterprise was dominated by female households (70.8%) with an average age of 30 years. Majority (80%) of them were married with an average processing experience of 8 years, while many (50.8%) purchased their raw plantain from the local farmers. It was revealed that roasted plantain (67.5%) and flour (26.7%) were the main processed plantain products available in the area. The average values of gross margin (N23,592.50) and profit (N21,777.80) showed that the enterprise is profitable. The value of return on investment (1.73) implies that the processors are capable to realize N1.73k for every one naira invested. The results of OLS indicated that cost of bowl, plantain price, transport cost, and labour cost were the significant factors influencing profit accrued in the area. However, high cost of labour, lack of storage facility, and high cost of transportation were the most serious constraints faced by the processors in the area. Therefore, it can be recommended that a proactive policy that would address storage facility, good road networks and as well create enabling market environment should be put in place.