Economic Returns of Gari Processing Enterprises in the Mampong Municipality, Ghana

This study sought to ascertain the economic viability of gari processing enterprises in the Mampong District of the Ashanti Region under the Root and Tuber Improvement and Marketing Program (RTIMP). To determine the socio-economic characteristics, profitability and the factors influencing net margins accruing to processors, a multistage sampling technique was employed to gather data on 110 processors from across three communities in the district. Descriptive statistics, budgetary technique, and a multiple regression model were used to analyze data collected. The study revealed that gari processing was a female-dominated (84.5%) activity, with a majority (85%) aged between 31-50 years and a mean age of 46 years. Most of processors were married (86%), were either breadwinners or co-breadwinner (99%); and with an average household size of 7.3 persons. Most processors (71%) had only basic level education; had an average of 7.3 years of processing experience and 72% depended on personal savings as source of finance for business. The study also showed that gari processing was economically viable as it generated an average gross margin and net returns of GH¢31,038.85 and GH¢30,474.16 respectively very within the period. Again all the financial indicators namely operating ratio, profitability index, and rate of return were favorable at 0.59, 0.40 and 67% respectively. The key determinants of profitability or net returns to gari processing were access to labor, cost of cassava, labor cost, household size, credit access, and cost of fuel. Economic returns to gari processing enterprise in the study area can further be enhanced if processors are able to source cassava from cheaper sources, adopt more labor saving methods like mechanizing operations and assisted with cheaper loans or credit access.