ECONOMIC ANALYSIS OF GUM ARABIC PRODUCTION IN YOSE STATE, NIGERIA

Abstract

This study seeks to provide information on the economics of Gum Arabic Production in Yobe State. A sample of one hundred and twenty (120) gum Arabic farmers from seven (7) Local Government Areas (LGAs) where gum Arabic is grown in Yobe State was made. Primary data were collected using questionnaire to elicit needed information on production, revenue, resource use efficiency and constraints as well as solutions to the identified problems. The data were analysed using descriptive statistics, budgetry technique and the production function analysis. The results showed that majority (73.33%) of the farmers were male and fall within the age bracket of 41 to 60 years. The farmers were operating on small-scale levels cultivating one to three hectares of land on the average. Family and hired labour were found to constitute themajor source of farm labour with household size of between six and ten.A yield of 200kg/ha was recorded on the average by the farmers in the study area. Gross margin analysis indicated that, Net Farm Income per farmer. per hectare was N19,430:00, implying that Gum Arabic production by small-scale farmers in Yobe State is profitable. The empirical results of the production function analysis also revealed that the production variables (farm size in ha, experience in years, transportation cost, in Naira) were statistically significant at 5% level and were positively related to farmers output. The efficiency of resource used by farmers indicated that family labour was over-utilized in the production process and farm size was under-utilized. Again, farmers were observed to be operating in the stage II of the production process with a Returns to Scale of 0.29. The findings identified problems faced by the farmers which include, long gestation period of the Gum tree, inadequate production inputs, lack of processing facilities, illegal tree cutting, and bush burnings and poor transportation network.