IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 7 NO. 1 2021

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Profitability Analysis of Wood Charcoal Production and Marketing in Selected Communities of Rivers State, Nigeria

AGBUGBA, Ikechi. K. NMEGBU, Ezihuo & BINAEBI, Ebitari

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Abstract

This study analyzed the profitability of production and marketing of wood charcoal in selected communities of Port Harcourt and Etche local government areas of Rivers State, Nigeria. The study described the socio-economic characteristics of the charcoal producers and marketers, measured their profitability and analyzed the factors influencing the profitability of wood charcoal production and marketing. Simple random and purposive sampling technique was used in selecting 30 producers and 100 marketers from Etche and Port Harcourt local government areas respectively: Survey research design was employed in the study. Descriptive statistics, gross margin and multiple regression analysis were used in analyzing the data. The result from the cost and return analysis on wood charcoal production showed that wood charcoal production is profitable with a cost benefit ratio of 1.3, which implies that for every one naira invested in its production, the producers gained 1.3 naira with a gross margin of ?4,441,500 naira and net income of ?1,033,050 naira. This clearly indicates that wood charcoal marketing is profitable in Port Harcourt local government area. The study concludes by recommending that government and financial institutions should increase efforts in providing aids such as loans, subsidies and grants for interested dealers who have little or no assistance.

keywords:

Production, Marketing, Profitability, Wood Charcoal

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