SMALL AND MEDIUM SCALE AGRO-INDUSTRIES AND RURAL DEVELOPMENT IN EDO STATE
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- NGN 3000
ABSTRACT
Small and Medium Scale Agro-Industries (SMSA) were supposed to be drivers ‘of rural development. However, the rate of development experienced in rural areas is not commensurate with societal expectation. Ironically being an agrarian society, the rate of rural development determines to a large extent the economic growth and development of the nation. This study aims to examine the challenges, people perception, the viability, available support and the sources of fund for SMSA, in Edo State. The study was necessitated to avoid overreliance on crude oil as mono-economy for national development. Using Exploratory Research Design, data were obtained with multi-sampling technique. Stratified Sampling Technique were used to select seven Local Government Areas (LGA), where two communities were selected from each LGA using systematic sampling technique. Twenty farmers from each community were then purposively selected based on the SMSA criteria. A total of 280 respondents participated in the questionnaire sessions, with one In-depth Interview (IDI) session held in each of selected communities making a total of 14 IDIs, seven Focus Group Discussion (FGDs) each comprising 8 members were for every selected LGAs. Quantitative data were analysed using, Chi-Square and phi-correlation coefficients. Qualitative data were content analysed. Findings show that Low credit facilities system (59%); Transportation (69%); and Lack of food processing units (77%) were the major challenges faced by SMSA farmers. People perceived that cassava cultivation was more lucrative it accounts for (67%), Banana/Plantain (63%), and Palm Tree (40%). The presence of large scale food processing industry will enhanced productivity (72%) while adequate food production will serve as a basic crime prevention strategy in the community (69%). The viability of SMSA, were viewed along these continua: enhanced rural life, increased food production and prevent poverty (77%); waste to wealth (70%). Supports from Government (27%) and corporate Organisations (32%) were low. Available support for SMSA were Social amenities (55%); Agricultural Extension Services (39%), Access to Research Institutes (36%), Access to Credit Facilities (35%), Modern Equipment (25%). A request for tractors and harvesters accounted for 75% need. Three sources of funds were identified but inaccessible by respondents, credit facilities (55%), Government support (73%) and Cooperate organization (67%). Chi-square calculated, rural development (χ2=24.966), government policies (χ2=37.652) and Agricultural productivity (χ2=31.410) did not significantly influence SMSA, only Pie-correlation was significant at R=0.002. Both IDI’s and FGD’s affirmed the findings from the quantitative survey. Refocusing on SMSA by Government and Cooperate Organisations will boost rural development. We recommend, therefore, policies to enhanced SMSA support and access to multiple sources of funds for SMSAs, availabilities of modern equipment and synergy between farmers in SMSAs and research institute for national development. The study contributes to knowledge was to enhance productivity through the availability of support and funds for Small and Medium Agro-industries, to improve the socialeconomic status of rural people and contributing to rural and national development. Keywords: Agro-industries, Small and Medium Scale, Rural Development, Supports and Sources of Funds
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