Profitability and Socio-Economic Factors Influencing Rice Processing in Jalingo Local Government Area, Taraba State, Nigeria

Abstract

This study examined the socio-economic characteristics of rice processors, the availability of processing infrastructure, the cost and returns of rice processing, the influence of socio-economic factors on revenue, and the major constraints affecting rice processing in Jalingo Local Government Area (LGA), Taraba State, Nigeria. Primary data were collected from 60 rice processors using a structured questionnaire. The data were analysed using descriptive statistics, gross margin analysis, a Likert-type scale, and multiple regression analysis. The results showed that 73% of the respondents were male, 75% were aged 21–30 years, 50% had secondary education, and 73% had between one and five years of processing experience. Milling machines were the most frequently reported processing equipment, followed by sewing machines, weighing scales, and destoners. The cost and return analysis indicated an average reported revenue of ₦68,250.00 and total reported cost of ₦52,237.10 per 100 kg bag, yielding a gross margin of approximately ₦16,012.90. Regression results indicated positive and statistically significant associations between revenue and age, processing experience, and sex. The reported coefficient of determination was 0.6252, while the variance inflation factor was 1.11 and the Breusch–Pagan test yielded a p-value of 0.7069. Fluctuating market prices, inadequate power supply, high energy costs, outdated equipment, difficulty retaining experienced workers, and poor road networks were identified as important constraints. The study concludes that rice processing offers income-generating opportunities in Jalingo LGA, although infrastructure and operating-cost constraints may limit performance. It recommends improvements in electricity supply, access to modern processing equipment, transportation infrastructure, and technical training.