PROFITABILITY ANALYSIS OF SESAME VALUE CHAIN ALONG JIGAWA-KANO AXIS, NIGERIA.

Y N KATANGA, P R WAZIRI-UGWU, E N GAMA

Abstract


The study examined the profitability of sesame (Sesamumindicum L.) value chain along Jigawa-Kano Axis, Nigeria. Multistage sampling technique was employed for the selection of respondents (farmers, traders, processors and exporters). One hundred and twenty(120) sesame farmers were randomly selected at the entry point of the upstream level of the value chain. While in the downstream level, 112 actors which comprises of 60traders, 36 processors and 16 exporters were selected. Data were analyzed using gross margin and marketing margin. The results of the study showed that, sesame farmers, traders, processors and exporters were the Value Chain Actors (VCAs). It also revealed that, sesame farmer produce an average of 576.21Kg/ha. The profitability measures have indicated that farmers had a gross margin ofN35, 087.94/ha, traders had marketing margin ofN36, 499.85/ton while processors and exporters haveN35, 085.17/ton and N19,851.63/ton as processing and export margins, respectively. These values indicated profitable enterprises along the sesame value chain. Challenges of the sesame value chain include problem of improved seed, high cost of input, transportation, price uncertainty/low price, contract transaction, and policy issues. The study therefore, recommended that, increased profitability, production and productivity along the sesame value chain could be achieved through the provision of improved varieties with desired characteristics, well managed contract transaction, provision of necessary infrastructures and a guarantee minimum price for all sesame enterprises along the chain.

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References


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