Project Abstract

This study examined groundnut oil production and marketing in Kaduna State,Nigeria. The specific objectives were to examine the socio economic factors that influenced the production of groundnut oil; examine the socioeconomic factors that influenced marketing of groundnut oil; describe gender roles in the production and marketing of groundnut oil in the study area; describe the marketing channels employed in the distribution of groundnut oil; analysemargins of groundnut oil production and marketing; and identify constraintsmilitating against the production and marketing of groundnut oil. Multi-stagerandom sampling technique was used to stratify the state into northern (mostlyMoslems) and southern (mostly Christians) areas. A total of 100 respondents (50producers and 50 marketers) were randomly selected. Data were collected fromproducers and marketers based on the list from the extension agents using twosets of structured and pre-tested questionnaires. Multiple regression model,descriptive statistics and marketing margin analysis were used to achieve theobjectives. Socioeconomic factor such as sex, education, occupation, and yearsof experience were significant at 1% level for production with an R- square ofabout 70%, while for marketing, age and education were highly significant at 1%level with an R-square of about 90%. Production of groundnut oil was dominatedby females, while both sexes had almost equal percentage in the marketing ofthe product. More retailers (76%) bought groundnut oil directly from theproducers at more frequent intervals because they had low capital base. But thewholesalers (24%) bought less frequently at larger quantities because of larger

capital.

The producer’s margin was 36%, with a Net Income of N43, 925.04 perannum. The wholesaler’s margin was 28% with a Net Income of N 615, 960.00per annum, while the retailer’s margin was 36% with a Net Income of N201,636.00 per annum. The total marketing margin was 100. The constraints ofnotable importance that affected production were lack of capital (92%), highcost of groundnut (82%), poor variety (50%), and crude processing method(70%). For marketing, high cost of groundnut oil (92%), high interest rate onborrowed money (80%) and fluctuation in price of groundnut oil (70%) andcompetition from other vegetable oils (50%). The production and marketing ofgroundnut oil if given a favourable environment by reducing the problems facingthe industry to its barest minimum would thrive better. So, by way ofrecommendation, research institutes should be encouraged through adequatefunding to produce high oil yielding varieties of groundnut. Loans should bemade accessible and at reasonable and affordable interest rate to producers and

marketers.

The indigenous manufacturers should fabricate groundnut oilextractors and groundnut oil producers encouraged to use them so that largerquantities of oil would be produced to meet market demand at a relatively lowerprice. Proper market information should be disseminated so that all the marketplayers would be in the picture and finally policies should be put in place to

discourage unlawful importation of the vegetable oils into the country to avoid

Project Overview