Profitability analysis of small-scale maize marketing in Kano State, Nigeria

Abstract

This research attempts to analyse the profitability of small-scale maize marketing in Kano state. Despite governments’ heavy investment in agriculture, slight improvements were recorded among the small-scale maize marketers in the state. The main objective of the study is to examine the profitability of small-scale maize marketing in the state. Primary data for this study were collected using a multistage random sampling technique, a total of two hundred and fifty respondents were selected and interviewed from two local government areas of Kano state using questionnaire. Farm budgeting, gross and market margin analysis and marketing efficiency analysis were used to analyse the profitability of the venture. The socio-economic characteristics of the respondents showed that the business is dominated by males with average age of 42 years and mean household size of 10 persons. Also, majority of the respondents had primary education, with more than five years of business experience. The study showed that small-scale maize marketing was profitable, with low gross margins of 14.06 and 16.56, and CTO of ₦1.50 and ₦1.65 capital turnover for retailers and wholesalers respectively. The study recommends that the government should come up with enhancing policies that will promote profitability in marketing of the crop. Lastly, it is recommended that the government should come up with policies that are targeted towards encouraging the small-scale maize marketers in the area to increase their volume of trade in order to reap scale economies and increased profitability to ensure sustainability.