JAFE Vol. 4 (1): 37-46
Contributions of Sawn Wood Trade to Livelihood Sustenance in Sapele Local Government Area of Delta State, Nigeria
Ohwo, O. A. and Ogoha, E.
ABSTRACT
The study was designed to evaluate the contributions of sawn wood trade to livelihood sustenance in Sapele LGA of Delta State. A purposive sampling technique was used to select 45 respondents from the study area whilea semi-structured questionnaire was used to obtain data for the study. Descriptive statistics were used to analyze the demographic data, regression analysis to determine the effect of demographic characteristics on profit levels, while data on financial returns were analyzed using profitability analysis tools. The business was dominated by married male who were selling various species of sawn wood. Triplochitonscleroxylon (malvaceae) was the most traded, whileMiliciaexcelsia (moraceae), Khayaivorensis (meliaceae), were among the least traded. Highly significant (P ˂ 0.1) relationships were observed between profit levels and demographic characteristics. Profitability analysis of the trade showed that majority of the respondents had net incomes of ₦601,000 - ₦800,000, with net profit margin, gross profit margin as well as rate of return on investment (RORI) being 46% - 55% showing that there were high levels of financial returns from the trade. It was concluded that Income from the business contributed significantly in sustaining livelihoods of the respondents.
KEYWORDS: Sawn wood trade, livelihood sustenance, sawn wood species, financial returns