Profitability Analysis of Groundnut Production in Chikun Local Government Area, Kaduna State, Nigeria
- October 29, 2019
- Posted by: RSIS
- Categories: IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue X, October 2019 | ISSN 2454–6186
Ayodele, J.T.
Federal College of Mechanization P.M.B. 2273, Afaka, Kaduna, Nigeria
Abstract: This study assessed the profitability analysis of groundnut production in Chikun Local Government Area of Kaduna State. Structured questionnaire was used to generate primary data for the study. Descriptive statistics, Net farm income analysis, and profitability ratios were employed in the analysis. Results revealed that majority of the respondents (87.95%) were relatively young and fell within the active age (21 – 50 years). Male respondents marginally dominated groundnut production at 55.42 % and majority (59.04%) were married. Results further revealed that significant (73.50%) number of the respondents had below 11 inhabitants in their households. Educationally, 64.00 % of respondents had post primary education. The net farm income per hectare was N81, 518.33 and gross income of N173, 952.45 were obtained per hectare of groundnut cultivated with a return on capital invested determined at 0.47 implying that for every naira invested, the farmers makes 47 kobo (N0.47)and the gross rati o was calculated at 0.53 indicating that total farm costs was about 53% of the gross income which shows that groundnut production is a viable, beneficial and profitable enterprise in the study area. Major constraints faced by the farmers were incidence of pests and diseases infestation plus inadequate capital. Despite these constraints, the farmers made profit. Therefore, groundnut production could be one of the poverty alleviating enterprise, if well-articulated. It is recommended that: credit facilities should be provided so that farmers can have fund to purchase farm inputs such as pesticides and insectices to combat problem of pests and diseases infestation identified, improve varieties of groundnut should be developed and made available to the farmers so that their yield can increase, and farmers should form themselves into cooperative groups so that they can pool their resources together in getting adequate funds to finance groundnut production activities.
Keywords: Profitability; groundnut; production; Constraints; Kaduna State.
