Economic Analysis of Bitter Kola Marketing in Osun State, Nigeria

International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue XI, November 2019 | ISSN 2321–2705

Economic Analysis of Bitter Kola Marketing in Osun State, Nigeria

Ojedokun, I.K.*, Adetunji, M.O

Department of Agricultural Economics, Ladoke Akintola University of Technology, Ogbomoso, Nigeria
*Corresponding Author

Abstract: – Kola is an important economic cash crop to a significant proportion of Nigerian population who are involved in kola farming, trading and industrial utilization. This study analyse the economics of bitter kola marketing in Osun state. Specifically, it described the socio-economic characteristics of the farmers, examined profitability of bitter kola marketing and factors affecting bitter kola marketing in the study area. Multistage sampling procedure was used to sample 270 bitter kola marketers and data were collected through the use a well-structured questionnaire. The data collected were analyzed using descriptive statistics, farm budget analysis and inferential statistics (Liner Regression Model; OLS).
The findings of the analysis revealed that majority of the respondents (86.3% ) were female, 33.8% of them were between the age range of 61 years and above respectively with the mean age of 57 years. Majority of the respondents (86%) were married, 65.2% of the respondents had secondary education, 59.3% of the respondents had between 5-8 household members with the mean of 7 household members. Again, 48.1% of the respondents had between 15-30 years of marketing experience 65.6% and 77.4% of the respondents do not have access to credit and extension service respectively. The gross margin (GM) was N2,694,800 while the net profit was N2,102,200 with the benefit cost ratio of N 1.53K. The regression analysis showed that variables such as age, household size, years spent in school, extension service, transportation cost and access to credit contributed significantly to the profitability of bitter kola marketing. It was recommended that marketers should be given better access to credit at low interest rate to boast bitter kola marketing business while agricultural extension model is adopted, the government’s direct promotion and practice of extension delivery in Nigeria should be reviewed.

Key words: Bitter Kola, Economic analysis, Marketing.

I. INTRODUCTION

Forests and the goods and services they provide are essential for human well-being. Humans use forest for many purposes and the products derived from forests and their benefits are referred to as ‘forest goods and services (Okafor, 1991). Generally the services fall into four groups: supporting, provisioning, regulating and cultural services. Although forest goods are the result of provisioning services, they are usually mentioned separately, being more tangible than the other services. This value chain includes wood and wood products such as fuel wood, paper, charcoal and wood structural products and non-wood products (food and plant products) such as rattan, mushrooms, nuts and fruits, honey, bush meat, rubber and biochemical (Babalola, 2009).

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