Profitability and Determinants of Maximum Variable Profit of Yam Production in Southwest Nigeria

This study investigated the profitability and determinants of maximum variable profit of yam production in Southwest Nigeria. Multistage and random sampling techniques were used to select 320 respondents. Data were collected through the administration of structured questionnaire and personal interview. Data were analyzed using descriptive statistics, budgetary technique and profit function regression. Results indicated that yam production in the area was proven profitable by the estimated positive values of gross margin (N308,744,801), net farm income (N277,888,701), mean net farm income (N868,402.19) and net return on investment (0.97). Per unit prices of output, seed yam and labour significantly determined maximum variable profit while per unit price of fertilizer, farmer’s age, education, farming experience, household size and extension visit were not significant. Adopting the principles of cost minimization such as bulk purchase of inputs and value addition as in product storage would reduce cost of production and enhance profit.