Analysis of Costs and Returns of Sesame Production in Hong Local Government Area, Adamawa State, Nigeria

Abstract

The study was conducted to analyze cost and return of sesame production in Hong L.G.A of Adamawa State, Nigeria. Multi stage sampling technique was used to select fifty-seven sesame farmers in the study area. Data were collected using structured questionnaire. Data were analyzed using gross margin analysis and descriptive statistics. The results revealed labour cost accounted for 68.1% of the total cost of production. Cost of fertilizer accounted for 20.3%, cost of chemical accounted for 7.8% while cost of seed accounted for 3.8%. On the average, it cost N 47,451.35/ha to cultivate sesame in the study area. An average of N 65,053/ha accrues to farmers as gross income and N 17, 601.65 is left as gross margin. The result of constraints faced by sesame farmers were lack of credit facility 94.7% which was ranked 1st, inadequate fertilizer 93.0% which was ranked 2nd, lack of good road 82.5% which was ranked 3rd, poor extension services 77.2% which was ranked 4th, problem of pest 71.9% which was ranked 5th, problem of disease 70.2 which was ranked 6th, and high cost of production inputs 56.1% which was ranked 7th. The study concludes that sesame production in the study area is profitable and the major constraints faced by sesame farmers is lack of credit facility and inadequate fertilizer. Therefore, it was recommended that government should support sesame farmers by providing subsidized production inputs and farm credit and also government should strengthen and increase extension services among farmers.