RAW MATERIALS SOURCING AND SUSTAINABLE ENTREPRENEURSHIP AMONG SMALL-SCALE AGRO-PROCESSING COMPANIES IN OSUN STATE, NIGERIA

The agro-processing sector in Nigeria, especially in Osun State, plays an important role in economic growth by reducing post-harvest losses, adding value to agricultural products, and creating jobs. However, the sustainability of small-scale agro-processing firms is often undermined by irregular raw material supply, poor infrastructure, and systemic inefficiencies. This study investigated the role of raw material sourcing in the survival and growth of small-scale agro-processors in Osun State. Specifically, it examined the strategies employed for sourcing, the relationship between sourcing and agro-processing production practices, and the systemic and operational factors influencing the availability of raw materials. The study adopted a descriptive survey design with a sample of 120 respondents drawn from owners, managers, and staff of agro-processing firms across Osun State using stratified random sampling. Data were collected through structured questionnaires and analysed with descriptive statistics and linear regression at a 0.05 significance level. Findings showed that multiple sourcing channels, supplier diversification, farmer partnerships, and seasonal planning were the most effective strategies, with minimal reliance on importation. Regression analysis revealed that sourcing strategies moderately improved raw material availability, and sourcing practices strongly influenced agro-processing production outcomes. Systemic and operational factors such as infrastructure, storage, and staff competence also had significant but smaller effects. The study concluded that effective sourcing is central to sustainability and recommends diversification, farmer contracts, ICT adoption, and improved rural infrastructure to strengthen agro-processing enterprises.