Agro-Industrial Development and Rural Transformation in Ogun State

This study examines agro-industrial development and its contribution to rural transformation in Ogun State, South West Nigeria. Ogun State hosts a growing concentration of agro-processing industries in cassava, poultry, and vegetable oil, driven by its proximity to Lagos markets and state government investment promotion efforts. Agro-industrialisation is theorised to stimulate rural transformation through employment creation, increased demand for agricultural raw materials, and technology and knowledge spillovers to farm-level producers. This study uses a mixed-method design, combining a survey of 30 agro-industrial enterprises in Sagamu, Ijebu Ode, and Abeokuta with a survey of 150 farming households supplying raw materials to these industries. Rural transformation indicators assessed include agricultural wage rates, non-farm employment creation, raw material producer prices, and technology adoption patterns. Findings reveal that agro-industrial expansion in Ogun State has generated significant employment, with each large-scale agro-processing facility creating an average of 85 direct and 240 indirect jobs. Raw material producer prices are 18 percent higher for farmers with direct agro-industry supply contracts than those selling through open markets. Technology spillovers through agronomist-farmer interactions are evident in cassava and vegetable supply chains. The study concludes that agro-industrial development in Ogun State is driving measurable rural transformation. It recommends strengthened farmer-industry linkage development and infrastructure investment to support further agro-industrial expansion.

Keywords: agro-industrial development, rural transformation, Ogun State, agro-processing, agricultural supply chains.