PROFITABILITY ANALYSIS OF WARA (Soya Bean Cheese) PRODUCTION IN SABON GARI LOCAL GOVERNMENT AREA OF KADUNA STATE, NIGERIA

Abstract

The study examined profitability analysis of Wara (Soya Bean Cheese) production in Sabon gari local government area of Kaduna State, Nigeria. Data were collected using a structured paper questionnaire through personal interviews form a total of 50 randomly sampled respondents. Data were processed using Microsoft excel and SPSS Software Packages and subjected to different forms of analysis using different statistical tools that include; Descriptive statistics and Gross Margin analysis. The findings of the study reveal that the mean age of the respondents was approximately 30 years with a minimum age of 14 years among the respondents and a maximum age of 48 years respectively. The study also revealed that 80% of Wara producers in the study area were females and only 20% were males. However, 52% of the respondents were married with average annual income of ₦443,600.00. The study also revealed that 36% of the respondents had attended the secondary education, 30% have tertiary education as their highest level of qualification, while 32% of the respondents have no formal education. The study also estimated the total variable cost of producing Wara per day was ₦11,640.86/day. The purchasing cost of soybeans contributed to about 39.7% of the total variable cost. Averagely, Wara producer makes a net revenue of ₦18,972.3/day, a gross margin of ₦7,331.47/day, a net marketing margin of ₦4,112.64/day. Wara production and marketing in the study area was revealed to be profitable as the finding reveals a positive return per naira invested of ₦1.28 on each ₦1.0 invested in the business.