Determinants of Profitability of Grasscutter Farming in South East Nigeria

Abstract

This study, Determinants of profitability of grasscutter farming business was carried out in South East Nigeria. Data were analyzed using descriptive and multiple regression model. Data were collected using structured questionnaire. The results showed that the average return per enterprises was N325,200.00, with net return per Naira investment of 1.07 with gross ratio (57.55%) and operating ratio (38.18%) with the solvency ratio (0.19). Multiple regression showed the coefficients of age of business (290719.30), amount of credit used (294991.00), value of asset (-6181.583), price of mature grasscutter (152750.90), number of competitors (-31148.8) and other cost (-83775.27) influenced profit of grasscutter enterprise in south east Nigeria. The study therefore recommended that government should ensure that farm inputs such as feeds/salt, drugs/vaccines, forage and credit are made available to the enterprises at a subsidized rate, to increase profitability of grasscutter farming business.