Wordperfect Office Document
Total Page:16
File Type:pdf, Size:1020Kb
Artech Journal of Research Studies in Agricultural Sciences (AJRSAS) Volume, 2, Issue 1, 2020, Pages: 7-11 ISSN: 2523-5494 Economic Analysis of Garcinia afzelii (Bitter Kola) Marketing in Ondo State, Nigeria 1J.O. Ijigbade and 2S.O.W. Toluwase 1Department of Agricultural Technology, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria 2Department of Agricultural Economics and Extension Services, Ekiti State University, Ado-Ekiti, Ekiti State, Nigeria Abstract: This study investigates the economic analysis of Garcinia afzelii (Bitter kola) in Ondo State, Nigeria. Data were collected from 120 respondents through a multistage sampling procedure using a structured questionnaire. Descriptive statistics, gross margin and multiple regression analyses were employed to analyse the field survey data. The Total Variable Cost (TVC) and depreciation cost on fixed inputs were 17,782.55 and x685.57, respectively per marketing cycle, average total cost of bitter kola per marketing cycle was estimated to be x18,468.12, while the average total revenue of x27,450.00 and net income of x8,981.88 with a capital turnover of 1.49 were realizable during a marketing cycle. The regression result showed that the coefficients were negative at 5% level of significance, implying that the purchasing cost, packaging cost and transportation cost of Garcinia kola have negative correlation with the revenue and profit of the product in the study area. On the other hand, marital status, household size, selling price and marketing experience were positive and statistically significant at the 5% level of significance. The study identified problem of storage facility, high cost of labour and seasonality of bitter kola as well as absence of organised market as major challenges facing the bitter kola marketers and therefore recommends policies interventions by government and non-government agencies in specific areas such as storage facilities and organised market that will improve the enterprise in order to reduce the problem of unemployment in the study area. Key words: Garcinia afzelii, bitter kola, economic analysis, marketing cycle, unemployment INTRODUCTION additional income through collection and marketing (Aiyelaagbe et al., 1996). Also, where there is decline in Garcinia afzelii (Bitter kola)is an economic and employment opportunities from traditional industries, highly valued nut-bearing tropical tree available in large workers seeking alternative sources of income, often turn quantity in Nigeria. It exists as a multipurpose tree crop in to the collection of the product from the nearby forest the home gardens of Southern Nigeria and produces (Adepoju and Salau, 2007). edible and medicinal seeds which are widely consumed The seeds are chewed to suppress headaches, (Aiyeloja and Ajewole, 2006). It is among the few commercial Non-Timber Forest Products (NTFPs) that laryngitis, bronchitis, malaria and gonorrhea have several uses, the most important being chewing stick (Ijomone et al., 2012). The seed extracted is used as a and medicinal (Onyekwelu et al., 2015). The trees are cure for various types of inflammation or liver cirrhosis, abundant in densely populated areas of natural and while dried ground kernels can be mixed with honey to secondary forests where the predominant land-use system prepare a traditional paste against cough (Adebisi, 2004; is tree-crop plantation farming. The major places where Aiyeloja and Ajewole, 2006). The kernels also play an the crop is found growing wild are forest reserves and free important role in traditional ceremonies, e.g., celebration areas of the rain forests or either planted or conserved on of a childbirth, marriage or chieftaincy. Offering the seeds farms of oil palm and cocoa yam plantations (Adebisi, is considered as an act of hospitality and used to welcome 2004; Pribyl et al., 2017). visitors (Iwu, 1993). Bitter kola nuts can be The species is sometimes referred to as a “wonder appreciated as a snack to be paired with beer or plant” because each of its parts can be used as medicine. palm wine (Adedokun et al., 2018). In the brewing The most valued product is the seeds, commonly chewed by both rural and urban populations to avoid and treat industry, the seeds can successfully substitute hops. gastric problems or simply for their typical astringent taste Due to the species’ dense crown, Garcinia kola is also (Babalola and Agbeja, 2010). promoted and utilized as a shade tree in cocoa In many areas, rural populations largely depended on agro-forestry systems or homegardens as well as a local forest resources such as Garcinia kola to provide windbreaker (Onyekwelu et al., 2015). Corresponding Author: J.O. Ijigbade, Department of Agricultural Technology, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria Citation: Ijigbade, J.O. and S.O.W. Toluwase, 2020. Economic analysis of Garcinia afzelii (Bitter kola) marketing in Ondo State, Nigeria. Artech J. Res. Stud. Agric. Sci., 2: 7-11. © Artech Journals Artech J. Res. Stud. Agric. Sci. Marketing of Garcinia kola starts from the point of State namely, North, Central and South while the second production. After maturation, the fruits of bitter kola is stage involved a purposive selection of two LGAs from allowed to drop and then gathered by children and each of the senatorial district and hence a total of six women. This collection was from trees growing in Local Government Areas (LGAs) comprises of Okitipupa, plantations of cocoa, kola, etc. or from trees in the wild or Odigbo, Akure South, Ifedore, Owo and Akoko growing on fallow land. The processing system of bitter Northwest LGAs were selected based on the prominence kola is very simple; the fruits are collected and the nuts of Garcinia kola in the area. The third stage involved a extracted, washed and stored for later sale. After purposive selection of 2 towns/villages in each of the 6 processing, the marketing of the nuts starts from the selected local government areas, making 12 producers (farmers or wild collectors) who sell in baskets towns/villages in all. In the final stage, 10 respondents and basins to the village merchants and wholesalers. The were randomly selected per town/village making a total of village merchants buy from the producers or collectors 120 respondents in all. and sell to the wholesalers who transport to other areas and distribute to the retailers at a given price Methods of data analysis: Data collected were subjected (Adedokun et al., 2018). to descriptive statistics, budgetary and regression analysis. Descriptive statistics such as frequency distribution, Objectives of the study: The overall aim of the study is means, charts and percentages were used to analyse the to investigate the economic analysis of Garcinia kola socio-economic characteristics of the respondents. marketing in Ondo State. The specific objectives of the Budgetary (Gross margin) analysis was used to evaluate study are to: costs and returns on Garcinia kola enterprise by the respondents. Gross margin will be mathematically C Describe the socio-economic characteristics of expressed as: Garcinia kola marketers in Ondo State C Examine the costs and returns associated with GM = TR - TVC Garcinia kola marketing in the study area Where: C Identify factors affecting Garcinia kola marketing in TR = P×Q the study area GM = Farm Gross Margin C Identify the constraints to Garcinia kola marketing in P = Market price of output per kg the study area Q = Quantity of output produced, processed or sold by ith Garcinia kola marketer per annum MATERIALS AND METHODS Cj = Unit price of the variable input j incurred by ith Garcinia kola marketer Study area: This study was carried out in Ondo State Xj = Quantity of variable inputs j used by ith Garcinia Nigeria. The State lies between latitudes 5º45' and 8º15' kola marketer north of the equator and 6º00' east of the Greenwich m = Number of variable inputs used by ith Garcinia meridian. The state lies entirely within the tropics with a kola marketer population of 3,441,024 and land area of 15,500 km2. It is bounded in the North by Ekiti State, in the East by Edo Again, multiple regression was used to determine the and Delta States, in the West by Ogun and Osun States factors affecting the profitability of Garcinia kola and in the South by Atlantic Ocean. There are three marketing in the study area. The implicit function is presented as follows: agro-climatological zones in the state, namely, the mangrove forest in the South, the rain forest in the Y = f(X , X , X , X , X , X , X , X , X , U ) central and the derived Savannah in the North. 1 2 3 4 5 6 7 8 9 i Geo-morphologically, Ondo State composed of low lands Where: and rugged hills with granites outcrops in several places. Y = Returns to Garcinia kola marketing (x) The state experience tropical climate with two distinct X1 = Purchasing cost of Garcinia kola (x) seasons which are the rainy season (April to October) and X = Cost of packaging (x) the dry season (November to March). The temperature 2 X3 = Marital status ranges between 21 and 29°C throughout the year, while X = Household size the humidity is relatively high and the annual rainfall 4 X5 = Experience (years) varies from 1,150-2,000 mm. The main cash crops are X6 = Access to credit (yes = 1, no = 0) cocoa, cassava, oil palm, rubber and non-timber forest X7 = Selling price (x) products such as Garcinia kola and Irvingia gabonesis. X8 = Transportation cost (x) X9 = Educational qualification Data and sampling techniques: Primary data was used Ui = Error term and a multistage sampling procedure