Original research article
Economic Evaluation of Wild Forest Spices in Ikot Ekpene, Nigeria
2016, 81 (4) p. 213-223
Adekunle Tajudeen Oladele, Ebele Ofodile, Ayo Adedapo Aiyeloja, Uduak Iniobong Oworen
Abstract
This study investigated the rate of return on investment (ROI) and profit margin of wild forest spices in seven purposively selected communities of Ikot Ekpene Local Government Area. Total sum of 193 randomly selected respondents were interviewed comprising; 71 producers/collectors and 122 marketers. Data was analyzed using descriptive statistics, net income, profitability, ROI and multiple regressions. Sensitivity analysis was carried out on ROI to establish the point at which the viability of the enterprise was threatened for each of the spices in various communities. Tetrapleura tetraptera (Schum. & Thonn.) Taub. had N460.00k and N293.33k unit contribution/kg in Ikot Obong Edong and Amayam, respectively; Zingiber officinale Roscoe had N180.00k, N245.00k and N350.00k unit contribution /kg in Abiakpo Ikot Essien, Ikot Ediet and Ikot Ekpene, respectively; Ocimum bassilicum L. had N226.25k/kg unit contribution in Mbiaso while Xylopia aethiopica (Dunal) A.Rich. had N417.50k in Ikot Inyang. Multiple regression result showed that educational level of the marketers was significant (0.03, p ≤ 0.05) on forest spices profit. Forest spices production/collection and trading has the capacity to alleviate poverty through additional household income, help food security and yield improved quality of life in Nigerian rural and peri – urban communities. Value addition through processing is suggested for improved profit and enhanced livelihood.
Keywords
local forest spices, profit margin, ROI, improved livelihood, Nigeria
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