Evaluation of Groundnut Value Chain in Kebbi State, Nigeria

Abstract

Data were collected through Semi structured survey
questionnaires and Interview of key informants in line with
the purpose of the study. Both simple random and
purposive sampling method were used to select the
respondents from different segments of the entire value
chain. Sixty (60) groundnut farmers were randomly selected,
thirty (30) wholesalers/retailers (traders) and thirty (30)
processors were selected from the four agricultural zones in
the State. Thus, given a total of one hundred and twenty
(120) as sample size. Data were analysed using Functional
Analysis, Descriptive statistics, Marketing margin, Net Farm
Income (NFI) Analysis, and Ordinary Least Squares
Multiple Regression Analysis. Results revealed that the
major groundnut value chain actors are input suppliers,
farmers, processors and traders. Their functions include
production of groundnut, supply of inputs such as seeds
agro-chemicals, processing, distribution and transportation
of groundnut. The study revealed that both groundnut
Farmers, Processors and Traders realized a profit of (N41,
044, N30, 865 and N39, 000 respectively) however, farmers
realized more profit than the processors and traders. The
major practices used in groundnut production by the
farmers is mixed cropping (60%), sole cropping (23.3%), and
both sole and mixed cropping (11.7%), respectively. The
determinants of groundnut quantity supplied to the market
include, Farming experience (0.335) Ownership of
transportation facility (2.834), Distance to market (4.007),
Agricultural extension service (3.001), and Quality of
groundnut produced (1.899). The major constraints
encountered by the groundnut value chain actors include;
for groundnut farmers, high cost of inputs supply (53.33%),
and inadequate supply of improved variety (31.00%). For
processors the constraints are High cost of processing
equipment (53.33%), Lack of access to credit (33.34%). While
the major constraints encountered by traders are; Insecurity
on rural - urban market roads (50.00%) and Fluctuation on
the prices of groundnut (30.00%)