STATISTICAL ANALYSIS ON THE PRODUCTION AND SALE OF FLOUR BETWEEN 2005-2010 (A CASE STUDY OF DANGOTE FLOUR MILL PLC ILORIN)

ABSTRACT 

This research production and sales of flours in Dangote aimed to determine whether there exist a relationship between sales and production of flours and also to determine if there is increase in the sales and production. Regression analysis and product moment correlation coefficient were used to analyze the data. The results of the analysis revealed that there is perfect correlation between the sales and the production of Dangote flours and also regression analysis revealed that there is linear relationship between sales and production. We there by recommend to the Management Board of Dangote Flour Mille to increase their production force in order to increase their sales in the nearest future.

CHAPTER ONE

1.1    INTRODUCTION

The production of flour for bread, cake, and the backed food mainly from wheat which is the major materials used by the miller. Wheat is  the most important and widely cultivated of the world’s main cereal crop. It is grown in every climate from cold regions like USA, Canada, Russia etc and extreme heat region like India.

In characteristics the wheat may be regarded as hard or soft, strong or weak and to the miller of baker its most important qualities are its strength, colour, flavor and of cause the amount of flour it will yield (Milling Journal 1997).

Wheat is grain like other grains e.g rice, millet, maize etc. the purpose of milling endosperm gradually into flour with minimum or no contamination of the brain, which is the wheat cover.

Dangote flour mill Ilorin is making used of hard red winter (H.R.W) wheat called friticum gestium which is the botanical name for it, to produce its product like bread, flour, Danvita (semolina) and brain.

Shortage of cassava flour coupled with surging wheat prices at the world market are adversely affecting the operations of flour milling companies in the country. In the flour mills industry almost 90% of the raw materials are imported because Nigeria’s climate is not viable for the production of wheat. There for rising price of wheat is therefore a major challenges begin faced in the industry as a ton of wheat is currently priced at between $180 and $240 

1.2    AIMS AND OBJECTIVES OF THE STUDY

The main objective of the study is to carry out a research work in order:

i.        To know relationship that exists between the flour production and sales

ii.       To determine the strength of their relationships

iii.      To know the effectiveness of statistical tool used for the analysis of data

iv.      To know whether there is occurrence of significant difference between production X and sales Y

1.3    STATEMENT OF PROBLEM

One of the major defects in flour production in Nigeria is unavailability of raw-materials as a local content (not grown locally) and the cost involved in the importation of cereal (wheat) from other part of the country.

Moreso, high cost of machine spare parts as well as power, coupled with the problems of distribution of products encountered by sales the department and the problem of bad road, are some of the major problem affecting the distribution and sales of flour.