ECONOMIC ANALYSIS OF SESAME VALUE CHAIN ACTORS IN THE FEDERAL CAPITAL TERRITORY, ABUJA, NIGERIA

Abstract

ABSTRACT This study examined the economic analysis of sesame value chain actors marketing in the Federal Capital Territory, Abuja, Nigeria. The aims were to describe the socio-economic characteristics of sesame producers and marketers, analyse sesame marketing margin, determine sesame marketing profitability, analyse sesame marketing efficiency, determine factors influencing sesame marketing and determine the major constraints of sesame marketing in the study area. Two hundred and forty respondents comprising 40 producers, 20 licensed buying agents, 80 rural buyers, 40 wholesalers and 60 retailers from four markets (Abaji, Yaba, Kwali and Kwaita) were interviewed through the use of a structured questionnaire. Descriptive and Inferential Statistics were used to analyse the data collected. The results of the study revealed that majority (80%) and (83%) of the producers and marketers were within the ages of 21 – 40 years respectively. The retailers had the highest marketing margin of 12.04%, as against licensed buying agents, rural buyers and wholesalers with 7.60%, 10.09% and 11.76% respectively. The analysis further revealed that the retailers were the most efficient with 265% efficiency value. The results of the regression analysis also revealed age, gender, transportation cost, income, labour cost, market tax and storage cost significantly influencing sesame marketing in the study area. Transportation cost, market tax, lack of experience and cost of purchased were the major problems militating against sesame marketing. Based on these findings, it was concluded that, the sesame market is well organized and that sesame marketing is a profitable venture and potential employment source. It was therefore recommended that extension education should be stepped up in the area to raise the marketers’ awareness, improvement of infrastructures in the rural area, innovating term work and enforcing guarantee minimum price of sesame in the area.