Economic Analysis of Sugarcane Production in Lau Local Government Area of Taraba State, Nigeria

¹ALAM, M.K; ¹VOSANKA, I.P, ¹TAPHEE, B.G, ¹YENGO, E. AND ²IDOKO, M.D

¹Department of Agricultural Extension and Management, Taraba State College of Agriculture, Jalingo, Taraba State, Nigeria.

²National Biotechnology Development Agency (BIODEC) Jalingo – North-East Zone Taraba State, Nigeria

E-mail: meetalammk@yahoo.com

ABSTRACT

The study analyzed the Economics of Sugarcane Production in Lau Local Government Area of Taraba State, Nigeria. Primary data were collected from 102 sugarcane farmers using purposive and simple random sampling techniques and were analyzed using descriptive statistic and gross margin analysis. The results of the socio-economic characteristic of the farmers revealed that majority (82.35%) were young adults below 51 years of age, and were predominated by male (92.16%), that were  married (77.45%), with large family size (74.51%). The findings also indicated that majority (76.47%) were small holder farmers who depended mainly on their personal savings (79.41%) for funds. The result of the gross margin analysis shows that sugarcane farmers incurred a total variable cost per hectare (TVC) of N143, 000 on sugarcane production. While the returns indicate the total revenue, gross margin, net farm income and return on Naira invested on sugarcane production were N241, 800, N98, 800, N91, 320 and N0.61K respectively.  The constraints to sugarcane production in the study area were identified as: inadequate funds, high cost of farm inputs, high cost of labour, lack of improved seeds, pest and disease attacks among others. Sugarcane farmers are encouraged to form cooperative societies in order to get financial support from government, NGO`s, private companies as well source credit facilities from banks. Government should also subsidize the price of farm inputs as well as provide improved seeds through extension agents to farmers in order to boost sugarcane production in the area.