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Leather Value chain Study in Katsina State, Nigeria: Cost and Return Analysis

Author Affiliations

  • 1Department of Agricultural Economics PJTSAU, Hyderabad, INDIA
  • 2Deparrtment of Agricultural Economics and Extension BUK, NIGERIA
  • 3Department of Agricultural Economics PJTSAU, Hyderabad, INDIA

Res. J. Agriculture & Forestry Sci., Volume 3, Issue (11), Pages 10-20, December,8 (2015)

Abstract

The research analyzed leather value chain in Katsina State, Nigeria. Profitability, value addition, consumer preference analysis and constraints along the value chain were identified. Structured questionnaires were used to collect data from hides/skin marketers, modern tanneries, traditional tanneries, small scale footwear producers and leather products (shoe) consumers using simple random and purposive samplings. Data elicited were analyzed using net farm income, marketing margin and efficiency and descriptive statistics. The findings of the study revealed that, Gross margins for traditional tanners and footwear enterprises were; N13, 700. and N52, 050 per week, with net income of N35, 498.7 and N5, 219.5 respectively. Marketing of hides has the highest efficiency followed by sheepskin and goatskins.Total marketing margin for traders was 3.6% indicating viability of the business. Consumer preference revealed that slippers were most used footwear in the study area (62.5%) and 72.5% preferred to wear homemade shoes mostly (50%) black colour. Major constraints along the value chain were; inadequate capital, high material costs, scarcity of hides and skin in the right quantity and quality, stiff competition and lack of strong cooperative societies. It was therefore recommended that, stakeholders be involved in the chain to support in the area of funding/institutional credit and capacity building, state and local government to establish state owned tanneries and enforce policies designed to remove all distortions and value chain actors should form viable and strong cooperatives societies.

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