Yam Value Chain Analysis Among Smallholder Farmers in South-South Nigeria

The study analyzed yam value chain among small holder farmers in South South Nigeria, with specific objectives of estimating the profit margin and examining the factors that affect the profit margin of the yam value chain actors. Gross and marketing margins, marketing efficiency and multiple regression analyses were used to realize the objectives. Data from eighty, fifty and sixty yam producers, processors and marketers, respectively were collected with the use of questionnaires. Results of analyses showed that the gross margin of yam producers was ₦554,133.3/ha and 35% of which went into operating expenses. That of processors was ₦154, 877.58 with 47% operating expenses and ₦96,0752.68 with 66% operating expenses for marketers respectively. Marketing margin of yam processors was estimated to be 0.332 (33.2%) and a marketing efficiency of 58.65%, which meant that the yam processors gained ₦58.65 kobo for every naira spent on processed yam. The marketing margin of yam marketers was estimated as 42.1% and a marketing efficiency of 54% meaning that yam marketers gained ₦0.546 (54.6 kobo) for every naira spent on marketing yam in the area. Factors that affected the profit margin of the yam producers were age, household size, education, farm size and access to credit. Age, level of education and processing experience influenced the profit margin of yam processors, while household size, level of education, marketing experience and membership of association influenced the profit margin of yam marketers. Nonetheless, the yam value chain actors made appreciable profit. Following the results, the following are recommended: because of the good profit margins of the actors, more people should be encouraged to become actors in the yam value chain and education of yam value actors should be encouraged to give them more capacity to use innovation in their business.