This research is a case study which assesses profitability of Bombyx mori silkworms cocoon production in Ekiti
State Sericulture Development Project Centre, Ado-Ekiti, Ekiti State, Nigeria. Structured questionnaire was
administered on 31 respondents made up of 3 management staff, 20 farmers of mulberry and 8 cocoon producers.
Data were collected on cost and revenue over a period of five year from 2009 to 2013. The collected data were
analyzed using percentage mention, Gross Margin Ratio (GMR), Benefit Cost Ratio (BCR) and Rate of Return
on Investment (RORI). The results show that investment on cocoon production was not profitable. The GMR
obtained were abysmally low and ranged from 3.29% to 12.30%. The RORI obtained was below the bank
interest rate of 21%. RORI ranged from 3.40% to 14.02% with an average of 9.26% at five years. The BCR was
1.10 after five years with 0.10kobo as profit on every N1 spent. Funding ranked 1st with 90.3% mention as major
problem militating against cocoon production. In order to solve the problems of fund, loan could be sourced
from Agricultural Development Bank at low interest rate since the project is meant to generate revenue for the
state.