Economic Analysis of Gari Processing Systems in Sierra Leone

Abstract

This study assess the performance and efficiencies of existing (4) gari production systems (profitability and marketing margins as well as the strengths, weakness, opportunities and constraints) in Sierra Leone. The Policy Analysis Matrix (PAM) was used for the analysis. Multistage random sampling was used to select study samples. Information was collected using a structured questionnaire from a total of 108 gari processors in 24 chiefdoms. Data collected included cost return and socioeconomic variables. The PAM was based on 50 Kg of fresh cassava storage roots and Leone (SSL) as money to evaluate costs and revenues. The analysis indicates that only three (3) cassava gari production systems (2, 3 & 4) present a Domestic Resource Cost Ratio of less than 1 (DRC < 1) and Cost-Benefit Ratio (CBR) also less than 1 (CBR within 0.64 to 0.96). Cassava gari production activity which uses systems 2, 3 and 4 was economically profitable for gari processing. Discounting potential revenue from cassava gari production systems that use at least mechanical equipment have higher comparative and competitive advantages. PAM for cassava gari production systems at 30% interest rate only system 4 remains profitable and thus have a comparative and competitive advantage which was the most mechanized system. It can be concluded that among the four gari production systems identified, system 4 was the most profitable with higher competitive and comparative advantage. This implies that policies for mechanizing gari production must be enacted for profitable and sustainable gari production in Sierra Leone.