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 Abstract

International Journal of Agricultural Policy and Research
Vol.2 (4), pp. 185-190, April 2014
ISSN 2350-1561
Article ID JPR050/14/06 pages
Copyright © 2014 Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 3.0 International License

Short Research Communication

Evaluation of gum arabic marketing and the propensity to save among gum arabic marketers in Nigeria

Accepted 25 March, 2014

1*Haliru Y.U., 2Ibitoye S.J and 1Ebenuwa C.I

1Rubber Research Institute of Nigeria, PMB 1049, Benin City, Edo State Nigeria.
2Department of Agricultural Economics and Extension, Faculty of Agriculture, Kogi State University, Anyigba, Nigeria.

*Corresponding Author’s E-mail: haliru.umar@gmail.com

 Abstract

The problem of low income and poverty is endemic in northern Nigeria. The study was thus carried out to evaluate the effects of gum arabic marketing on the income status of the marketers in North-Eastern Nigeria. Data were collected through the use of structured questionnaire orally administered on 150 respondents in Yobe, Adamawa and Taraba states of Nigeria. The data were analysed using both descriptive and inferential statistics. The results indicated that a total of 626,465.00 kg was sold among the respondents which generated total revenue of N 2, 618,197.533. The Gross Margin (GM) and Net Profit (NP) per kilogram calculated were N 3.74 each. These imply that gum arabic marketing was profitable in the area. The study also revealed that 64% of the respondents were extremely poor could neither earn nor save up to $ 1.00 per day before engaging in the gum arabic business; but this dropt to only 6% after engaging in the gum arabic marketing. Invariably also, the study indicated that 79.33% of the respondents couldn’t spend up $ 1.00 per day before engaging in the gum arabic business which also dropped to only 7.33%  after engaging in the gum arabic marketing. These imply that gum arabic marketing has enhanced their income status which alleviated the poverty situation of most of the respondents. This was more glaring in result of the marketers’ propensity to save which revealed that 74% of the respondent couldn’t save, rather were indebted of the consumption before engaging in the business of gum arabic of total of N 3,399.00 ($ 22.66), and this was improve as 75.33% saved up to N7,200.00 ($48.00) of their total income. The study thus recommended the encouragement of gum arabic marketing in the area as it is profitable.

Key words: Gum arabic, income status, profitability, North-Eastern Nigeria


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