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Journal of Applied Sciences
  Year: 2007 | Volume: 7 | Issue: 22 | Page No.: 3557-3561
DOI: 10.3923/jas.2007.3557.3561
 
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Assessment of the Cotton Industry Using the Global Commodity Chain Analysis Approach in Katsina State, Nigeria

T.M. Kudi, J.G. Akpoko and Z. Abdulsalam

Abstract:
The study examines the cotton commodity chain and assessed the share of each actor in the cotton industry and identified the constraints encountered in cotton production, marketing and processing. A sample of thirty cotton producers, 50 traders, 500 agents and 3 ginneries were selected from Funtua Local Government Area of Katsina State using both random and purposive sampling techniques. Both qualitative and quantitative data were collected from the participants using focus group discussion and structured questionnaire during the 2004/2005 cropping season. Analysis of the data was done using descriptive statistics and budgeting technique. The farmers’ budget analysis indicated that from an investment cost of 33,146.00 ha–1, farmers obtained a revenue of 44,544-00 ha–1, thus making a net income of 11,398 ha–1, while the agent analysis shows that an agent is paid a commission of 500.00 ton–1 of seed cotton purchase on behalf of the merchant. The analysis of the traders’ budget revealed that from an investment cost of 36,746.00 ton–1 of seed cotton purchased, traders’ are making a revenue of 41,700.00 (lint + seed) and a net profit of 4,954.00 ton–1 of seed cotton. The analysis of the ginnery budget revealed that from one ton of seed cotton processed, a ginnery is making a net profit of 2,178.00. These analyses indicated that cotton production, marketing and processing under the current price and cost setting is profitable. In spite of the profitability in cotton business, the following problems were identified: adulteration of seed cotton with foreign materials, heterogeneous seeds resale in the market, inappropriate packaging systems, no good prices for improving the quality and no mechanism for ensuring transparency in the quality (trust between actors). There is the need for intensification and expansion of the cotton sector in terms of provision of high quality inputs, clean seed cotton, introduction of jute bags for packaging, introduction of quality control mechanisms and good prices in order to sustain the industry.
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How to cite this article:

T.M. Kudi, J.G. Akpoko and Z. Abdulsalam, 2007. Assessment of the Cotton Industry Using the Global Commodity Chain Analysis Approach in Katsina State, Nigeria. Journal of Applied Sciences, 7: 3557-3561.

DOI: 10.3923/jas.2007.3557.3561

URL: https://scialert.net/abstract/?doi=jas.2007.3557.3561

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