Socio- Economic Contributions and Marketing of Charcoal in Igbo-Ora, Oyo State

Abstract

Charcoal is a major forest product that serves as vital source of livelihood for large proportion of the poor and middle-class people living in or close to the forest in most tropical countries. This study specifically examines the socio-demographic properties, profitability and market structure in the study areas. Simple random sampling technique was used to select 120 charcoal businesses, which was split on market chain whether they were producers, wholesalers or retailers. 40 copies of questionnaires were administered on each market chain. Descriptive statistical tools, profitability analysis, gross margin and Gini coefficient were used to analyze the data collected. Profitability analysis showed that the producers, wholesalers and retailers incurred ₦15,100.00, ₦55,675.00 and ₦1,715.00 respectively as total cost but earned ₦52,675.00, ₦78,750.00 and ₦2,312.50 respectively as revenue implying that each earned ₦37,575.00, ₦23,075.00 and ₦597.50 respectively as gross profit. Also, benefit cost ratio was recorded to be 3.49, 1.41 and 1.35 respectively. Gini-Coefficient of 0.4932 obtained in this study showed that the market is tilting away from equality, also among the market participants, and prices were determined at the production level of the chain, although the business was lucrative. It is therefore recommended that government should create structural frameworks that allows for planting of more trees by charcoal producers in other to ensure maximum sustainability of the resource, more so, policies that checkmate charcoal producers should be implemented by the Forestry governing body as most exploit woods unsustainably.

Keywords: Market chain, Profitability, Sustainability, Charcoal, Benefit Cost Ratio, Marketing