Gross margin analysis of rubber based cropping systems in Nigeria

The study aims at determining the economic impact of the rubber based cropping system introduced to rubber farmers in Nigeria by Rubber Research Institute of Nigeria under the sponsorship of the Common Fund for Commodity (CFC) project in Nigeria coded CFC-IRSG 21. Thirty three farmers were randomly selected in five states in Nigeria (Edo, Delta, Ogun, Kaduna and Akwa Ibom) using interview schedule. The profitability of rubber based cropping systems on farmers’ farms in the five states was determined using gross margin analysis. The study revealed that rubber based cropping systems in the study area were profitable with positive gross margins for all the identified cropping systems in the study area. Furthermore, the study revealed that a gross margin of N178, 000/ha and return on investment of N4.79 was the highest for the two cropping system identified in Edo state. A gross margin of N331, 000/ha and return on investment of N7.76 per Naira was the highest for the three cropping system adopted in Delta state. For the four crop combination in Ogun state, a gross margin of N181,000 and return on investment of N6.32 per Naira was the highest. In Akwa Ibom state, a gross margin of N402, 100 and return on investment of N8.05 per Naira was the highest for the three crop combination. For the four crop combination in Kaduna state, gross margin of N 488,000 was the highest. The study however, concluded that cassava featured more in the intercropped combination and it gave higher gross returns in the rubber based cropping systems in Nigeria compared with other crops across the states.   Key words: Gross margin, profitability, rubber, intercropping, cropping systems.