Cost and returns analysis of cotton production in Katsina state, Nigeria

Abstract

The study examined the cost and returns of cotton production and identified the constraints associated with its production in katsina State. A sample of 250 small-scale farmers waspurposively selected from Malumfashi, Funtua and Daudawa in katsina state. Data were obtained from farmers through interview schedules. The data collected were nalysed using descriptive statistics and budgeting techniques. The cost and returns analysis indicated that the cost of fertilizer and other inputs like chemicals and seed accounted for 18% of the total variable cost incurred in cotton production. it was found that cotton production was profitable as indicated by the average net income (N20526.30) The total cost of production was (N 45796) while the total revenue was (N 66216.66 ) and the average net return showed that small holder cotton enterprise is profitable . Despite the profit margin, farmers were confronted with the problem of high cost of inputs especially fertilizer, improved seed, adulterated chemicals. The paper recommended that farmers should form cooperatives in order to put resources together to purchase inputs particularly herbicides and pesticides.