Economic Viability Study of Allanblackia Seed

Sponsored by:Project Novella, Nigeria

Conducted by:Community Resources Development

Organization (CREDO)

Study Highlights

Farmers’ AB activities are still at the level of wild harvesting. Consequently, the determination of AB business viability relied mainly on farmers projections and reasonable assumptions.

Over 66% of additional household income from AB activities are controlled by men who do most of the selling of the seeds.

Over 73% of farmers are interested in planting AB seeds in their farms. The farmers are willing to plant about 1230 AB trees.

Over 95% of farmers indicated that the current selling price of AB seeds at N25/kilo is not fair. They proposed an upward review of price at N198/kilo in comparison with other cash crops like cocoa.

Smallholder farmers can be encouraged to invest in AB planting because the projected return on investment from AB seeds is conservatively posted at 82% and it compares favourably against cocoa and other crops.

Presentation Outline

Background Research Objectives Research Methodology (The

Process) Data Collection and Analysis Discussions, Recommendations and

Conclusion

Background

Allanblackia Floribunda – where found

Development Partners

Research Objectives

This study is geared towards testing the hypothesis that Return on Investment (ROI) of AB seed is higher than the other competing crops like bush mango, cassava, cocoa, plantain, banana etc.

Research Justification

Most of the areas in Nigeria where AB seeds grow, it appears, the people are poor. However, the income level of people living in these densely populated areas needs to be determined.

Based on the initial pilot experiences, the prospects for boosting rural income and national exports are extremely promising through the cultivation of AB trees and the promotion of a sustainable supply chain.

An average small-scale farmer could typically earn as much as $ 100 (2007) to US$ 200 per annum by 2015 as an additional income for just 3 months.

Research Justification (Contd.)

Novella Project in Nigeria would like to support about 6000 collectors/farmers (40% women) in 100 villages.

Additional employment has been created for 100 focal persons/buying clerks.

There is need to determine the business case (viability) for planting of AB seeds. This requires a comparative income study of AB seeds and other crops which compete for the farmers land, labour, time and financial resources.

Research Questions

Should small holder farmers in Nigeria go into planting of AB seeds?

What is the business case for planting AB

seeds as compared with other crops?

Does the expected return on investment (ROI) from AB seeds compare favourably with those from other crops?

Research Methodology

Capacity Building/Training for field enumerators

Participants at the 3-day workshop on AB Income Study, Mac-Cheni Hotel, Port Harcourt. July, 2008.

Research Methodology (Contd.)

Study Teams – 2 teams of 4 persons each (3 CREDO + 1 Novella Staff)

Taking the States one after another Survey Sample – sample size Sampling technique – simple

random sampling technique

Communities SurveyedCROSS RIVER STATE RIVERS STATE EDO STATE

Danre 1 Mgbu Iguesogban

Abo-Ogbante Unwanba Egbatatan

Abo-Bonabe Omerelu Ikobi

Ochor Orimekpang

Egbeda Ugbiaheke

Danre II Azuogu Obayantor

Arangha Umuagu Iguezama

Abuja Farm Umualika Evbu-Iyamu

Opu Nyowii Leuku Ofunmwengbe

Nkak Obete Igueshodin

Onitsha Farm Umueke Ukhirino-Khua

Data Collection & Analysis

The data collection process includes: Initial community entry to book

appointment with the community leadership and to solicit their support (handled by Novella Field Officers in each State);

Community sensitization about the study and identification of the target group for interview;

Selection of respondents using simple random sampling technique;

Administration of survey instrument on respondents.

Gender Analysis of Respondents

Analysis of Respondents By Gender

0

10

20

30

40

50

60

70

C/River Rivers Edo Total

Resp

on

den

ts

Masculine

Feminine

De-generational Analysis of Farmers

Analysis of Respondents by Age

0

2

4

6

8

10

12

14

16

18 – 30 31 – 45 46 – 60 61 – 80 Don’t Know

No

. o

f R

esp

on

den

ts

C/River

Rivers

Edo

Present generation of farmers may not be able to hand over farm activities to younger generations unless something is done very fast.

Poverty Reduction Potentials

Uses of Income from AB Seeds

74

15

11

0 20 40 60 80

Family Up-Keep

Children'sEducation

On Self

Series1

Additional income from AB activities will help make live more Comfortable to the people. Average income per season is N1,980

At N25/kilo. This is bound to exceed N20,000/season with increased Participation, domestication and price increases in the future.

Farmers’ Requests

Improvement in the per kilo price of AB seeds; Financial support to farmers by way of loans; Clear (weed) the forest twice yearly; Technical support (training) and advisory services

from Novella Project on seed drying, seed preservation and AB domestication;

Provide farmers with the seedlings for planting; Massive education and enlightenment programme

on the importance of AB trees and the danger of bush burning and logging of AB trees;

Protection of AB trees from animals and insects etc.

Farmers’ Level of Education

Farmers' Level of Education in Rivers State

0%

57%30%

13%

Tertiary (%)

Secondary (%)

Primary (%)

None (%)

About 57% of farmers managed to attend secondary education. The rest (43%) either stopped at primary or had no education at all.

Poor Records Keeping.

Yes, 14%

No, 86%

Yes

No

About 86% of farmers don’t keep farm records. This affects ability to determine farm profitability, access to bank loans, knowledge and Use of improved farming technologies and seedlings, and properplanning.

Institutional Support is Required

Consider the need for informal education for farmers in the state;

Consider the effects of farmers’ poor educational background on their access to loans, acceptance and utilization of improved farm inputs, farm planning and budgeting, simple record-keeping, etc.

Consider the need to get our young people involved in agriculture

Consider the employment and income generation potentials of modernized agriculture

All these require well-articulated and committed support to institutions and organizations that can assist the farmers (e.g. ADP, Project Novella, CREDO, etc)

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