Economic potentials of ginger value chain in Kaduna State, Nigeria

Abstract

Without a doubt, ginger is an important commercial crop which significantly contribute nutritionally, pharmaceutically and medically. Unfortunately, the producers, processors, and marketers have been given little attention, especially regarding the empirical profitability associated with each activity. This study, therefore, sought to estimate the net margins of the actors and compare their profitability. A total of 380 ginger producers, processors, and marketers were randomly selected from Jaba local government area in Kaduna state. Data were collected using pretested semi-structured questionnaires. Partial budgeting techniques and the one-way analysis of variance were used. The study revealed a net margin of about 140,000 NGN/ha/annum for the producers, while the net marketing margin/bag for the ginger processors and marketers was 3,300 NGN and 3,470 NGN, respectively. Furthermore, the profitability indices showed that the producers, processors, and marketers earned about 37%, 70%, and 41% profit of invested funds in the ginger value chain. Comparative analysis revealed that the profitability of the processors, which was the highest, was statistically different from the other actors. It is concluded that there exist tremendous economic potentials in the ginger value chain. It is, therefore, recommend that policies that will encourage ginger production, processing, and marketing should be implemented with particular emphasis on the processing aspect.

Keywords

• agriculture
• ginger
• jaba
• partial budgeting
• return to capital