Quest Journals Journal of Research in Business and Management Volume 5 ~ Issue 3 (2017) pp: 20-24 ISSN(Online) : 2347-3002 www.questjournals.org *Corresponding Author: Osuji, E.E. 20 | Page Department of Agricultural Economics, Michael Okpara University of Agriculture Umudike, Nigeria Research Paper Economics of Processed Cassava Products in Imo State, Nigeria 1 Osuji, E.E, 2 Anyanwu,U.G., 2 Ehirim,N.C., 3 Eze, E.U, 4 Tim-Ashama, A. 1 Department of Agricultural Economics, Michael Okpara University of Agriculture Umudike, Nigeria 2 Department of Agricultural Economics, Federal University of Technology Owerri, Imo State 3 Department of Agricultural Technology, Federal Polytechnic Nekede Owerri, Imo State 4 Department of Agricultural Science, Alvan Ikoku Federal College of Education Owerri, Imo State Received 13 June, 2017; Accepted 22 June, 2017 © The author(s) 2014. Published with open access at www.questjournals.org ABSTRACT: This study evaluated the economics of processed cassava products in Imo State, Nigeria. Multi- stage random sampling technique was used to select 106 cassava processors for this study. Information on the objectives of this study was elicited from the sampled respondents through a well structured questionnaire. Data were analyzed using descriptive statistics such as the mean, analyses of variance and net returns model. The socio-economic features of the farmers reveals a mean age of 54 years, 4 persons per household, 7 years educational attainment, 16 years of processing experience and a business size of N 4,531. The result of the analysis of variance showed no significant differences in net returns of processed cassava products across the three agricultural zones of the State. Hence, Okigwe and Owerri zone recorded the highest net returns in garri and fufu processing respectively showing the profitability of the enterprise. However there is urgent need for the government to assist the rural cassava processors by providing direct extension services to cushion the processing inefficiencies faced by these farmers in the area. Keywords: Economics, Processed, Cassava Products, Net-returns, Imo State I. INTRODUCTION Cassava (Manihot esculenta Crantz) originated from Brazil and now is widely cultivated mainly in the tropic and sub-tropic regions of the world, over a wide range of environmental and soil conditions (Onyenwoke and Simonyan, 2014). Cassava is very tolerant of drought and heat stress and produces well on marginal soils. It is an important dietary staple in many countries within the tropical regions of the world where it provides food for more than 800 million people (FAO, 2013). As a subsistence crop, cassava is the third most important carbohydrate food source in the tropics after rice and maize, providing more than 60% of the daily calorific needs of the populations in tropical Africa and Central America (El-Sharkawy, 2003). According to Adeniji et al. (2011), cassava plays an important role in alleviating food problems, because it thrives and produces stable yields under conditions in which other crops fail. Cassava processing is simply the act of transforming freshly harvested cassava product into a finished product. For instance, with improved processing technology, raw cassava can be transformed into industrial products of international standard (Adepoju and Nwangwu, 2010). Processed products can be classified into primary and secondary products. The former, e.g. garri, fufu, starch, chips, tapioca, akara-akpu, pellets, etc are primary products which are obtained directly from raw cassava roots, while the latter are obtained from further processing of primary products (e.g. glucose syrup, dextrin, and adhesive are obtained from starch) (Akinwale et al. 2010). Cassava processing activities are widespread in Nigeria’s rural areas, being the most formally processed crop in the Southern and Middle Belt areas of the Country. The economic livelihood of many Nigerians in the South-east and South-south and Middle-belt depended on the crop. Cassava, in its processed form, is a reliable and convenient source of food for tens of millions of rural and urban dwellers in Nigeria (IITA, 2012). The low income nature of the developing countries compels the processing of agricultural produce into primary foods which have a number of competing alternatives, and so the value added benefits of rural processing continues to be variable and marginal. This in turn, seems to perpetuate their poverty levels (Osunde and Fadeyibi, 2011). Hence, it is believed that the presidential initiatives on cassava crop should be implemented through massive campaign on the various economic uses of cassava which include the processing of cassava into high quality cassava flour for use in bakeries and pastries. This measure will ensure