Economic analysis of Senegalia senegal (Gum Arabic) production in Yobe state, Nigeria

Abstract

This work analyzed the economics of Senegalia senegal (gum Arabic) production in Yobe state, Nigeria. Specifically, it studied the socioeconomic characteristic of the farming respondents and the profitability of gum Arabic production in the state. Purposive and random sampling techniques were used to select Afunori, Nangere and Damaturu plantation areas as well as the sampled gum Arabic farmers respectively. Yero Yemeni`s model was used in the determination of the number of gum Arabic farmers involved in the study. Data was collected using a structured questionnaire and the variables on which data was collected included gum Arabic production inputs and output, marketing costs and revenues. Data was also collected on socioeconomic variables. Both financial and statistical tools were used in analyzing the data including Gross Margin (GM) and Profitability analyses. Socioeconomic data revealed that the gum Arabic production scenario was dominated by youth, the male gender, educated elites and public servants with small land holding. Financial results on the contrary, revealed US$ 805.86 (N241, 758.00) GM values per hectare per year, whereas US$ 345, 948.88 (N103, 784, 664.00) was the total net profit realized. On the average each respondent earned US$1, 572.49 (N 471, 747.00). Thus, it was concluded that gum Arabic production in the state was economically profitable. However, its resources were grossly under exploited. Other production constraints uncovered included land tenure problem, poor extension services, lack of improved planting stocks and poor support on the part of government. Creation of enabling environment for improved production and marketing as well as adequate stakeholder involvement were some of the major policy recommendations made.

Keywords: Economic analysis, Senegalia senegal, production, Yobe State