THE PLACE OF PLANTAIN IN BAKERY PRODUCTS PRODUCTION - ECONOMIC ASPECTS

Economic evaluation has shown that plantain flour would have to sell for twenty six Nigerian Naira (N26) per 50kg bag (assuming a 10 per cent profit margin on every bag sold) against a wholesale price of N13.50 per bag of wheat flour. However, the wholesale price of wheat does not truly reflect the cost to the economy of consuming imported wheat.

An assessment of this cost has been carried out by estimating the shadow price of imported wheat which appears to be about N21.50 per bag. This assessment is confirmed by the observation that in 1980 the retail price of wheat flour ranged between N20 and N28 per bag.

Further experience with cultivation of plantain on a large scale, the production of plantain flour and the application of value engineering to the process of plantain flour and baked good production could reduce the cost of the plantain baked products. Plantain bread, biscuit and cake are new products and the price to be paid for them should reflect both the economic and social values.

The production of plantain baked products in Nigeria would also reduce dependence on imported wheat and help in pursuing increased self-sufficiency in food. Since entrepreneurs are usually concerned with commercial return and not the broader economic and social objectives, comparison of the cost of plantain flour production and wheat flour indicates that initially government subsidies will be required to encourage the production of plantain flour and plantain bakery products.

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