Journal of Applied Sciences1812-56541812-5662Asian Network for Scientific Information10.3923/jas.2007.3557.3561KudiT.M. AkpokoJ.G. AbdulsalamZ. 122007722The 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 ha1, farmers obtained a revenue of
44,544-00 ha1, thus making a net income of
11,398 ha1, while the agent analysis shows that an agent is paid
a commission of
500.00 ton1 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 ton1 of seed cotton purchased, traders’ are making
a revenue of
41,700.00 (lint + seed) and a net profit of
4,954.00 ton1 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.]]>Adeniji, O.B.,20022002Andrae, G. and B. Beckman,19871987Anonymous,1998Chikwendu, D.O.,199385555Gereffi, G.,19941994pp: 95-122pp: 95-122Gereffi, G.,1999483770Gereffi, G.,19991999Hopkins, T.K. and I. Wallerstein,19861986Hopkins, T.K. and I. Wallerstein,19941994pp: 17-20pp: 17-20Idem, N.U.A.,1999Manyong, V.M., A. Ikpi, J.K. Olayemi, S.A. Yusuf, B.T. Omonona, V. Okaruwa and F.S. Idachaba,2005pp: 159pp: 159NPC,20062006Ogungbile, A.O. and M.M. Kyari,19891989Olukosi, J.O. and S.U Isitor,1990Raikes, P., M.F. Jensen and S. Ponte,200029390417