ECONOMIC ANALYSIS OF WOOD MARKET IN KAJOLA LOCAL GOVERNMENT AREA OF OYO STATE, NIGERIA

This study focused on Economic Analysis of wood market in Kajola Local Government Area of Oyo State. Multistage sampling was used in this study. Budgetary and Gini coefficient were used for the data analysis. Result showed that 54.0% engaged in the business were female 49.0% was in age group between 41-50 years, 57.0% are SSCE holder and 55.0% had 5-7 employees also 99.0% were private. The result also revealed that among the timber species that were common in the market include, Terminalia superba (Afara) has the highest percentage of 29.4%, and Azandiranta indica (Dongoyaro) has the least percentage. Moreover, the budgetary analysis of the plank vendor was revealed, the average revenue for the year 2016-2020 ranged between #21,120,100- #30,240,000, the net profit ranged between #13,432,033- #20,523,753. The result also show the market efficiency of the business from 2016-2020 was 2.75%, 2.93%, 2.41%, 3.16% and 3.11% respectively. Furthermore, the result show the market structure and conduct of the market and also show the constraints facing the market, ranging from inadequate power supply, high cost of transportation, insufficient species and Government policy. It was recommended that Government should encourage private tree plantation so as to make available more trees since demand for wood is at increased and also they should improve the market price and supply level of timber business in Kajola Local Government.