Economic Analysis of Timber Production Among Saw Mill Operators in Some Selected Local Government Areas of Ogun State

Abstract

ABSTRACT The study was carried out to determine the Economic analysis of Timber Production among Saw mill operators in some selected Local Government Areas of Ogun state. The objective of the study was to highlight the socio-economic effects of the timber managers/saw mill managers, determine the profitability of the enterprise and to determine the constraints affecting the industry in the area. The study areas were purposively selected and the respondents were randomly selected. Data was collected with the aid of a questionnaires. Twenty (20) questionnaires were administered in each of the four selected L.G.As., given a sample size of eighty (80). The analytical tools employed were largely that of Descriptive statistics (tables, percentages and frequency distribution) as well as Benefit-Cost analysis for the economic evaluation. Without projections, the values of the Benefit-Cost ratio are 1.046 and 1.7 for soft and hardwood respectively, and the projected values for 10 years at 10% discount rate were 1.14 and 1.91 for soft and hard wood enterprises respectively. This implies that the two enterprises were profitable and beneficial to the proprietors. Some of the problems impeding the smooth operations of the timber business in the study area include inadequate capital, lack of access roads, erratic power supply to the factory site, high cost of transportation. It was therefore recommended that proper management of forest resources, provision of good road network to link the forest and factory sites be provided.