Abstract
The study assessed the profitability analysis of small-scale sawmill business in Cross River State, Nigeria. It specifically described the socioeconomic characteristics of the small-scale sawmill owners, estimated the profitability of sawmill business and determined the factors affecting the profitability of small-scale sawmill business in the study area. A multi-stage sampling procedure was employed in selecting a sample size of ninety-six (96) respondents. Primary data used were collected using structured questionnaire and analyzed using descriptive statistics such as frequency, percentage and means, gross margin analysis and multiple regression analysis. The results of the study revealed that the respondents were mostly male (85.42%), and have mean age of 48 years. Majority of the saw millers (73.96%) were married. The sawmill owners have mean household size of approximately 6 persons and mean monthly income of N340,625.50. The gross margin analysis showed an average return on sales of 0.32, which indicates that out of every Naira (N) earned, about 32 Kobo accrue to the sawmill business as net income; and net return to investment of 0.48, indicating that out of every Naira (N) spent on sawmill business, 48 Kobo accrue as the net profit, thus indicating that sawmill business is profitable. The study showed that transportation cost, cost of power and fuel, labour cost, market charges, experience in sawmill business, and educational level were significant factors affecting the profitability of sawmill business at 5% significant level respectively. The study recommended that government should make policies that will enhance availability and accessibility of credit to saw millers, improve on power supply for increased production and promote rural development through the provision of infrastructures such as better road networks that will lead to reduction in transportation cost.