The trend of capacity utilization of food- beverage sector was the focus of the study. Secondary data on capacity utilization of agro-based industries covering 25 years (1975-1999) as compiled by the Central Bank of Nigeria (CBN) and the raw material research and Development Council of Nigeria (R.M.R.D.C) were used in the study. Time trend analysis and variability index were the analytical tools. The time trend analysis revealed declining average capacity utilization over the period of study while the coefficient of variation signified an overall instability in the raw material utilization. It is inferred that there was over-dependence by home industries on imported resources. These local materials were under utilized and consequent under-development. It is therefore recommend that importation restriction on material that could be produced locally be enforced. While enabling facilities be made available to the producers/users, research centers should also be more funded.
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