University of Khartoum

The Economics of Sesame Production and Marketing in Gadarif and North Kordofan Rainfed Sector -Sudan

The Economics of Sesame Production and Marketing in Gadarif and North Kordofan Rainfed Sector -Sudan

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Title: The Economics of Sesame Production and Marketing in Gadarif and North Kordofan Rainfed Sector -Sudan
Author: Hala Yousif Ahmed Abu Adel, Adel
Abstract: The main objective of this study was to evaluate the effects of the main economic factors on sesame production, marketing and exports of Gadarif and North Kordofan States, of Sudan. The study tested the positive hypothesis of socio-economic characteristics on producers and traders, high share of harvesting, crop physical losses and transportation costs, existence of market oligopoly, and co-integration of markets in Sudan and with the export market. Primary data for season 2008/09 was collected through a field survey using a structured questionnaire from a simple random sample of 360 producers (200 in Gadarif, 160 in North Kordofan), 132 traders (59 in Gadarif, 43 in Elobeid, and 30 in Om Rawaba), and 40 exporters (18 in Gadarif, 11 in El Obeid, and 6 from different states). Secondary data were also collected from official sources. The study used descriptive statistic, marketing margins, budgeting, policy analysis matrix (PAM), and time series temporal and spatial co-integration methods for analysis. The results indicated that Egypt the largest importer of sesame from Sudan during 2000-2009, that the share of farmers’ price was about 75% on average of the FOB prices, and that the market-margin shares of the exporters exceeded those of the assemblers. The study also revealed the existence of oligopoly among traders and exporters of sesame in the three markets and export market, and that sesame crop was profitable despite the high cost of harvest, physical losses and transportation in production and marketing activities. The PAM analysis revealed the competitive position of sesame exports of Sudan despite high implicit and explicit taxes that might have acted as a disincentive to producers and traders alike. The results also indicated the instability of prices of sesame as concluded by the temporal analysis and existence of co-integration between exports’ and domestic markets in the long run. The study recommended reducing sesame production and harvesting cost through breeding of non-shattering varieties; reducing marketing cost through introduction of sieving process in the production areas to reduce physical losses; improving infrastructure to reduce transportation cost of sesame. The study also recommended the application of market regulations to attain efficient market structure and performance; supplying of market credit to traders to avoid oligopoly practices, and ensuring of production of quality sesame for increased export of Sudan
URI: http://khartoumspace.uofk.edu/handle/123456789/12675
Date: 2015-06-15


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