Profitability of Sesame Production in Some Selected Local Government Areas of Katsina State, Nigeria

Abstract

The study analyzed the economics of sesame production in Katsina State, Nigeria. Farmers in Katsina State are mostly small-scale farmers and are often faced with the problem of low productivity and profitability. Despite the economic importance of sesame seed, export potentials and world demand, sesame producers are yet to achieve a significant increase in their output and income Primary data were collected from 90 selected sesame producers using a multistage sampling technique across Katsina State and interviewed using a structured questionnaire. Gross Margin (GM) model was used for data analysis. The results revealed that sesame producers in Katsina State incurred an average Total Variable Cost (TVC) of ₦117,942.28 with the cost of labour amounting to ₦46,611.50 which accounts for about 39.52% of the TVC of production. The result also revealed a positive gross margin of ₦118,469.29/Ha with a Return per Naira Invested (RNI) of ₦2.00. It was concluded that sesame production is an important and profitable enterprise in Katsina State based on a positive GM and RNI of ₦2.00. The study recommends that there should be more investment in the sesame production enterprise by the sesame farmers to increase output and profit. Effective extension services should be put in place by KTARDA to educate sesame farmers on improved production techniques while community-based organizations should be strengthened for accessing agricultural loans as a group.