ANALYSIS OF THE PROFITABLILITY OF PICS BAGS FOR THE STORAGE OF ROSELLE GRAINS (Hibiscus sabdariffa) IN THREE REGIONS IN NIGER

Roselle is a multipurpose crop produced for its grain, as well as flowers used in making teas and therapeutic preparations. The study is based on interviews with 164 randomly selected Roselle producers in Dosso, Maradi and Zinder Regions of Niger. Farmers store roselle grain in various containers, such as woven bags, plastic jugs, plastic bags, granaries, etc. which are mostly non-hermetic. Some store with the addition of wood ash, neem leaves (Azadirachta indica), sand or insecticide. Plastic jugs, granaries and plastic bags are used mainly for storing small amounts of roselle while metal drums and woven polypropylene bags are reserved for larger quantities. Overall the portion of roselle grain stored in 2012 in potentially hermetic containers was: Dosso, 22%; Maradi, 29% and Zinder, 26%. In 2012, the percentage reported stored in PICS triple bags was Dosso, 4%; Maradi, 2% and Zinder, 2%. The percentage of the grain quantity stored with insecticide in 2012 was Dosso, 26%; Maradi, 13%, and Zinder zero. The analysis of price fluctuations shows that about 7 months of storage is required for the producers to take advantage of price seasonality. Rozelle prices also vary widely from market to market. Consequently, marketing flexibility is key to profitable commercialization. In most cases storing into the next rainy season (i.e. 7 months) is the most profitable strategy. It is clear from this analysis that the PICS bags are a potential source of profitability for roselle producers in the study areas especially when the storage period is relatively long. For example, the simple rate of return is over 100% even when the PICS bag is only used one year compared to selling at harvest. PICS technology is much more cost effective than the traditional method of storage. After 7 months of storage without either insecticide or hermetic storage method, the return on investment is largely negative because of very high storage losses.


Issue Date:
2015
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/208450
Total Pages:
31
JEL Codes:
Q01; Q16; Q12
Series Statement:
15-2




 Record created 2017-04-01, last modified 2018-01-23

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