Economic analysis of Neem (Azadirachta indica) production in Yobe state, Nigeria

Abstract

This work determined the economics of Azadirachta indica (neem) production in Yobe State, Nigeria. Specifically, it studied the socioeconomic characteristic of the farming respondents and the profitability of neem production in the State. Multistage sampling technique was used to select Afunori, Nangere and Damaturu plantation areas as well as the sampled neem farmers respectively. Yero Yemeni`s model was used in the determination of the number of neem farmers involved in the study. Data was collected using a structured questionnaire and the variables on which data was collected included neem production inputs and output, marketing costs and revenues. Data was also collected on socioeconomic variables. Both descriptive statistics and economic tools were used in analyzing the data including percentages, frequency distribution tables and Gross Margin (GM) analyses. Socioeconomic data revealed that aged, male gender, individuals with no formal education as well those with small land holding constituted 50%, 95.45%, 54.55% and 90.91% respectively. Financial results revealed respective GM and net profit values of N3, 831.82 and N 3, 274.06 per hectare per year. Thus, it was concluded that neem production in the State was not economically viable and was attributed principally to ignorance of its economic potentials and lack of functional markets. Other production constraints uncovered included land tenure problem, poor extension services, lack of improved planting stocks and poor supportive services.

Key words: Economic analysis, Azadirachta indica, production