Analysis of Groundnut Value Chain in Hong Local Government Area of Adamawa State in North Eastern Nigeria

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International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume VII, Issue I, January 2022 | ISSN 2454–6194

Analysis of Groundnut Value Chain in Hong Local Government Area of Adamawa State in North Eastern Nigeria

Ahmed Usman, Toroma Lawrence and Bawa Bala
Adamawa State College of Education Hong, Department of Agricultural Education
Corresponding Author

IJRISS Call for paper

Abstract: The study analyzed the value chain of groundnut in Hong Local Government Area of Adamawa State in North Eastern Nigeria. It described the socioeconomic characteristics of value chain actors, determined the cost and returns along the groundnut value chain and identifies the constraints faced by the actors along the groundnut value chain. Multi-stage sampling technique was used to sample 144 respondents which served as sample size and the data obtained were analyzed using gross margin and descriptive statistics. The results of the socio-economic characteristics shows majority (83%) of the actors involved their falls between 21-40 years were at active age, 70.14% were female, 58.33% were married , most (97.23%) attended one form of formal education or the other and their major sources of capital to actors obtained capital from personal savings (73.61%). The average gross margin of the actors shows that processor of cake, processor of roasted groundnut, producers of groundnut and marketers of groundnut earned ₦17,720.00, ₦8,893.00, N 12,900.00 and ₦6,450 per 100kg of shelled groundnut respectively. It was also found that inadequate capital. pest and disease and poor verities of groundnut were the major constraints limiting groundnut production in the study area. It was concluded that value chain of groundnut is profitable though the actors faces some challenges. The study therefore, recommend both government and non-governmental organizations should provide soft loan to the actors to enable them to expand their ventures, to boost up activities along the groundnut value in the study area there is need to provide them with modern processing technologies so as to add more value to the products along the chain. There is need to gear in providing subsidizing input prices to the actors by governmental and non-governmental organization.

Keywords: Value, Chain, Groundnut and Hong

I. INTRODUCTION

Groundnut (Arachis hypogeal) originated from South America, but is now widely cultivated throughout the tropical, sub-tropical and temperate countries, and in Africa, Asia, North and South America. Optimum mean daily temperature to good growth is 3000C and growth ceases at 1500C and cool temperature delay flowering (Asongwa et al., 2011). It is commonly called the poor man’s nut is an important oilseed and food crop for millions of people in the semi-arid tropics. It generates employment on the farm during cultivation and during processing. According to Food and Agriculture Organization (FAO, 2011) and Girei et al. (2013), it is grown in nearly 100 countries with China, India, U.S.A, Indonesia, Nigeria, Myanmar and Sudan as major producers. Nigeria is among the world’s groundnut producers, accounting for 10%, 39% and 51% in the world, Africa and West Africa, respectively (ICRISAT, 2011).