PROCESSING AND MARKETING OF GUM ARABIC IN BORNO STATE, NIGERIA

PROCESSING AND MARKETING OF GUM ARABIC IN BORNO STATE, NIGERIA

Abstract:

The study investigated the processing and marketing systems of Gum Arabic in Borno State. Five local government areas were purposively selected for the study based on availability of the produce under review. A total of 192 respondents were sampled for the study. They include: Farmers/Collectors (106), Rural Assemblers (78) and Urban Assemblers/Processors (8). Structured questionnaire and oral interviews were used for primary data collection. Data collected were analyzed using descriptive statistics, simple index number, gross margin and marketing performance measuring techniques; marketing margin and efficiency. The results of the study show that, the average age of the respondents was 45 years. Also, about 40% of females mostly from nomadic families participated as collectors while male dominate other areas of processing and marketing of Gum Arabic. A seven-year simple index number analysis indicated an annual price increases from 1998 – 2003 with a more than 30% remarkable price increased from 2003 – 3004. The result of gross margin and average rate of returns analysis shows that, for each metric tonne of grades I, II and III Gum Arabic processed, a gross margin of N21,800, N9,120 and N1,660 respectively was received. Also average rate of returns of N1.32, N1.26 and N1.08 was received for every one naira invested in processing each metric tone of grades I, II and III Gum Arabic respectively. The Urban Assemblers recorded the highest average marketing margin of 24.8%, 22.8% and 36.1% for grades I, II and III respectively. Commission agents who acted on behalf of their client, received the lowest marketing margin of 3.2%, 3.6% and 3.1% for grades I, II and III respectively. The marketing efficiency analysis for the five markets studied shows that Maiduguri market recorded the highest average efficiency of 116% while; Kukawa market recorded the lowest average efficiency of 62% for grades I,II and III. The first three major problems of the processors were adulteration of produce, lack of industrial processing facilities and financial problems, while adulteration of produce, poor market information and financial problem were the first three major problems of the marketers. The study suggested that Gum Arabic testing and other marketing facilities should be provided by NAGAPPEN and Government at the market and processing areas. Traders and manual processors of Gum Arabic should form co-operative Societies in order to facilitate loans procurement and repayment from financial sources and also to ease flows of market information. Gum Arabic producing States should build and equip processing facilities in their states which can be later privatized.

PROCESSING AND MARKETING OF GUM ARABIC IN BORNO STATE, NIGERIA

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