University of Khartoum

Assessment of the Economics of Sesame Production in Gadaref State and Sesame Exports of Sudan

Assessment of the Economics of Sesame Production in Gadaref State and Sesame Exports of Sudan

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Title: Assessment of the Economics of Sesame Production in Gadaref State and Sesame Exports of Sudan
Author: Ahmed, Limia Mohamed Mustafa Mohamed
Abstract: The general objective of this study was to assess the economics of sesame production of Gadaref State and the exports of sesame of Sudan respectively, and the specific objectives of the study were measuring the performance and trend of the sesame area, yield and production in Gadaref State; estimating the cost and returns of the crop production in the state; and analyzing the volume and value of sesame exports of Sudan and their destination to importing countries. The study collected secondary data on sesame production for the period1990-2015 and on sesame exports for the period 2006-2015. The data were obtained from the Federal Ministry of Agriculture and Forestry, the State Ministry of Agriculture of Gadaref State, and the Department of Customs of Sudan and from other official sources. The study used the simple descriptive approach, statistical and econometric regression model, and the farm budgeting method for analyzing the data. The results showed a continued increasing, but with a fluctuating trend, of the area under sesame production in the rainfed mechanized schemes of the Gadaref State. The area increased by almost 2.3 folds, from 300 thousand feddans in 1990/91 up to 687 thousand feddans in 2014/15. A parallel increase in sesame production rate was seen, rising from 27 thousand tons up to 62 thousand tons during the same period. The productivity of sesame fluctuated between 70 and 180 kg/feddan, but with a rising trend throughout the period. The results of the econometric regression model showed a high adjusted R2 of 63% and a high F value of 14.7 indicating the ability of the model in capturing most of the related independent variables, and its overall significance. The regression results also depicted the existence of a positive and significant relationship between production and both sesame area and sesame prices. It was concluded that as the area under sesame increased by one feddan the production of sesame would increase by 0.09 tons; and as the price of sesame increased by one SDG, the production of sesame would increase by 0.052 tons. The results of the farm budgeting analysis estimated an average cost of production of SDG 637 per feddan and average revenue of SDG 954 per feddan, giving a positive gross marginal revenue value of SDG 552 per feddan during 2011-2015. The cost of harvesting was the highest item accounting for 64% of the total cost of production of sesame, followed by weeding, about 20%, and wages and salaries, about 5%. About 57% of the cost of harvesting was paid for meeting the cutting and threshing costs of sesame seeds, while 22% was paid for meeting Zakat charges. The budgeting analysis indicated a benefit cost ratio of 1.87 during the period investigated. The results of the analysis of sesame exports of Sudan showed an increase in export quantities from 238.7 thousand tons in 2006 up to about 299.7 thousand tons in 2014, by 1.25 folds. The average Free on Board (FOB) export prices of sesame rose from USD 594 per ton up to USD 1556 per ton, by 2.62 folds. These two components led to the increase in the sesame exports revenues from USD 141.8 million up to USD 466.3 million during the same period, by 3.29 folds. During 2012-2015, the exports of sesame of Sudan averaged to 475.3 thousand tons, of which 82% went to the Arab countries, 15% went to the Asian countries, 4% to the European countries and less than 0.1% went to the other countries. The average export values of sesame amounting to USD 61.87 million was shared among the Arab countries paying 62%, the European countries paying 30%, the Asian countries paying 7% and the other countries paying less than 0.5%. Saudi Arabia was the top country importing sesame from Sudan, about 97 thousand tons accounting to 20% of its total sesame imports, followed by China, about 54 thousand tons, accounting to 11.3%, and to Greece, about 8 thousand tons, accounting to 0.17%. The study recommended expansion of crop area under sesame, introducing mechanical harvesting to reduce the cost of manual labour and exploring causes limiting expansion of market access into the potential importing countries in the world.
URI: http://khartoumspace.uofk.edu/123456789/25585


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