Profitability Analysis of Timber Trade in Benue State, Nigeria: Implication for Poverty Alleviation

Abstract

This study analyzed the profitability of timber trade and examined its effects on poverty in Benue State. Multistage sampling technique, purposive sampling at 30% sampling intensity and complete enumeration were applied to determine the study sample. Out of the 23 LGAs of the state, seven (7) LGAs were sampled. Thus, 160, 73 and 13 respondents from timber traders, chainsaw millers, and sawmillers adding up to 246 were randomly selected and interviewed to elicit data. Data collected were collated and analyzed using few descriptive statistics. Gross margin analysis (GM), Rate of Return on Investment (RORI), Gross Ratio and (GR) were used in determining the profitability and effectiveness of timber trade in the study area. A mean monthly Gross Margin of N85,740, N320,570, and N275,080 was recorded by timber traders in zones A, B and C respectively. Similarly, Rates of Return on Investment were 22.13, 34.27 and 31.52. Also, chainsaw millers GM were; N39,688, N128,730, N84,480 with corresponding RORI of; 84.19, 43.93, 61.80. In the same order the GM of sawmillers were N320,130, N136,000 and N407,540 with RORI of; 87.17,42.90,63.93 were recorded in zones A, B and C respectively. This indicates that timber trade is a viable enterprise in Benue State; therefore sustainable management is pertinent for continuous supply of the resource base.