International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue V, May 2020 | ISSN 2321–2705

Profitability of Cashew Nut Marketing in Oyo State, Nigeria

OJEDOKUN Ajibola Olajide^1*, OGUNLEYE Kehinde Yewande² and ADELOWO Idris^2
1Department of Agriculture, Lagos State University, Epe Campus, Lagos State, Nigeria
²Department of Agricultural Extension, Ladoke Akintola University of Technology, Ogbomoso, Osun State, Nigeria
*Corresponding Author

Abstract: – The study was conducted to evaluate the profitability of cashew nut marketing in Oyo State, Nigeria. The study used primary data which was collected from a total of one hundred and twenty marketers using simple random sampling technique. The data were analysed using descriptive statistics, budgetary analysis and multiple regression analytical technique. The study showed that marketing of cashew nut is productive and profitable. The study also revealed that marketing costs, selling price, purchase price, quantity of cashew nut purchased and transportation costs significantly influenced cashew nut marketing. The study thus recommended that adequate transportation should be provided by government and the existing roads should be refurbished to minimize transportation costs.

Keywords: Profitability, Marketing, Cashew nut, Determinants, Oyo

I. INTRODUCTION

Cashew (Anacardiumoccidentale L.) is one of Nigeria’s cash crops that have over the years given the country recognition worldwide. It was introduced into Nigeria many years ago by the Portuguese explorers and it has rapidly spread to all agro-ecologies of the country (Hammed and Anikwe, 2008). The crop has not only been used for food for many years but it is also an important income generator. The trees are mainly grown for their kernels, which when roasted have a very pleasant taste (Oladejo, 2015). The crop is cultivated in 20 States of the country which includes Kwara, Kogi, Oyo, Edo, Ondo, Anambra, Enugu, Benue, Cross River, Imo, Sokoto, Nassarawa, Ogun and Osun (Ezeagu, 2002). In addition, Nigeria is ranked the fourth largest producer of cashew nuts in Africa after Tanzania, Cote d’Ivoire and Guinea Bissau while in the world, she is ranked seventh (Okon, 2016). Nigeria produces an average of 80,000 metric tonnes annually from a total area of 10,000 hectare, thus contributing almost 16% of the total production in Africa and 5% of the global production (Farayola etal., 2013).
One of the very important parts of cashew is the nut which is mostly being exported to India with almost 18,000 metric tonnes to 23,000 metric tonnes of raw nuts estimated to be exported annually (Farayola etal., 2013). In addition, Nigeria like other developing countries has recognised the potential economic value of cashew and has made a concerted effort to improve production of the crop (Ogunsina and Lucas, 2008).