Document Repository and Sectoral Scope Summary

Abstract

This study assessed value addition and profitability of Parkia biglobosa processing among market actors in Benin City, Edo State, Nigeria. Specifically, it identified the major value-added products, estimated processing and marketing costs, compared the profitability of raw and processed products, and examined the principal constraints affecting the enterprise. A cross-sectional survey design was adopted. Multistage sampling involving purposive and random techniques was used to select 120 processors, suppliers and traders from eight markets in Oredo and Egor Local Government Areas. Primary data were collected using a structured questionnaire and analysed with frequencies, percentages, means, standard deviations, weighted mean scores, gross margin and cost-and-return analyses. Results showed that fermented locust bean, locally known as iru/ogiri, was the dominant value-added product, accounting for 80.8% of products traded, compared with powdered locust bean (7.5%), dried dawadawa (6.7%) and raw seeds (5.0%). The total cost of handling raw seeds was US$0.64 /kg, while processed products required US$2.03/kg. Nevertheless, processed products generated total revenue of US$4.25/kg, gross margin of US$2.34/kg and net return of US$2.23/kg, compared with US$1.22, US$0.59. andUS$0.58/kg, respectively, for raw seeds. The return on investment was 1.10 for processed products and 0.91 for raw seeds, while profit margins were 52.3% and 47.7%, respectively. Major constraints were high market levies (mean = 3.51), limited awareness of value-added products (3.41), inadequate transportation (3.22), lack of storage facilities (3.20), processing and marketing risks (3.14), and poor access to ready markets (3.11). The study concluded that processing substantially increased profitability and recommended improved training, packaging, storage, cooperative marketing and streamlined market levies.

Keywords: Parkia biglobosa, Value addition, Profitability, Market actors, Locust bean Benin City