Profitability analysis of the sesame value chain in gaderif state Sudan 2019-2020 season

Abstract EN

Sesame is very important cash crop in Sudan, it contributed by 771.6 million dollars to Gross Domestic Products (GDP) in 2019.

Semi mechanized rain fed sector is the main contributor in sesame production especially in Gaderif State.

Despite the importance of Sesame crop in the Sudanese economy, it suffers from some problems and obstacles that hinder its contributions.

This study aimed to analyze the profitability of sesame value chain in Gaderif State during 2019/2020 season in order to identify the challenges and constraints throughout the value chain stages, determine gross marketing margin and producer share in consumer price.

Primary and secondary data were used in the study, multistage random sampling technique and purposive sample procedure was used to collect the primary data from the actors by means of questionnaires.

The total sample size was 230 participants (150 farmers, 30 wholesalers, 15 processors, 15 exporters and 20 retail traders).

Secondary data included time series data (from 2000 to 2020) of area cultivated, production, yield, export quantities and values and it collected from the Federal Ministry of Agriculture and natural resources and Bank of Sudan.

Quantitative analysis of value chain was used to analyze the data, financial indicators and marketing margin coefficients were used to determine financial position of actors.

The results of the study revealed that actors in the value chain received unequal marketing margins this difference are the evidence of market inefficiency.

The results showed that most of the value added was due to high transportation cost and physical losses in the crop.

The coefficient of private profitability (CPP) indicated the profitability of sesame in all value chain stages.

Return of 1 SDG invested by farmer was found to be very low this implies low farmer profitability due to weak productivity.

The results revealed that the farmers had the largest percentage share (59%) of the export price.

The study identified some challenges in different value chain stages such as; high labor and mechanized operations costs at production stage, physical losses and transport cost at export stage, losses and processing cost in process stage, market fess and transport cost in market stage.

The study recommended that; use of improved high yielding and disease resistant varieties of Sesame crop, improve the efficiency of market system and use effective pricing policies.