Economics of Cheese Production among Nomadic Households in Ogun State, Nigeria

The selling of dairy products is widespread among the Fulani. The traditional pastoral sector is noted for the production and vending of milk is the most important economic preoccupation of the Fulani however, it faces many challenges in Nigeria. The study therefore, examined the profitability of cheese production among nomadic households in Ogun State. Data were with an interview schedule from 180 randomly selected nomadic households. Data were analysed using descriptive statistics and farm budgetary analysis. Results showed that cheese producers in the study area had a mean age of 51 years with 79.0% having no formal education. Majority (92.0%) of the cheese producers were married with mean household size of 5 people. The mean years of experience in cheese production was 18 years while the mean quantity of milk processed into cheese by the producers was 203 kg per month. The monthly total revenue for the study area was N42, 343.33/kg from 846.8kg of cheese at ₦50/kg while variable cost was ₦33, 281.99 giving a gross margin of ₦9, 061.34/kg. Net farm income/kg on cheese production was ₦8, 968.58/kg. The rate of return on investment was computed to be 0.27 kobo. This study concluded that cheese production was profitable in the study area. The study therefore recommends among others that although cheese production is profitable in the study area further reduction on cost of inputs used and labour could further increase profit realized form cheese production.