Profitability of soybean processing in Ogbomoso area of Oyo state, Nigeria Oladejo Joana Adefemi Department of Agricultural Economics, Ladoke Akintola University of Technology, Ogbomoso, Oyo state, Nigeria Online published on 8 October, 2013. Abstract This study investigates the cost and returns to soybean processing in Ogbomoso area of Oyo state. Purposive sampling technique was employed to select a total number of 240 soybean processors (120 soy cheese and 120 soymilk processors). Data were collected with the use of well structured interview schedule. The result revealed that the mean age for soy cheese producers was 38 years compared with 42 years for soymilk producers. Mean household size was 4.75 for soy cheese producers compared with 5.13 for soymilk producers. Above 88% of soymilk producers received formal education compared with 100% of soy cheese counterparts, while 80% of soy cheese producers compared with 93.3% of soymilk producers were married. Budgetary analysis revealed that soymilk enterprise attracts gross margin of #1,053.00 per processing cycle while soy cheese enterprise attracts gross margin of #350.67 per processing cycle. Soybean processing is found to be profitable with benefit cost ratio of respondents greater than one. Regression analysis revealed that significant variables affecting revenue to soymilk enterprise include purchase cost of soybeans and age (in business) of respondents while for soy cheese enterprise, significant variables include purchase cost of soybeans and cost of other ingredients used in soy cheese production. The result of the analysis shows a positive and significant relationship between processing technique and returns to the enterprise. The study concluded that soymilk enterprise is more profitable than soy cheese enterprise in the study area. Top Keywords Profitability, Food processing, Soymilk, Soy cheese. Top |