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; analyse margins of groundnut oil production
and marketing; and identify constraints militating against the production and
marketing of groundnut oil. Multi-stage random sampling technique was used to
stratify the state into northern (mostly Moslems) and southern (mostly
Christians) areas. A total of 100 respondents (50 producers and 50 marketers)
were randomly selected. Data were collected from producers and marketers based
on the list from the extension agents using two sets of structured and
pre-tested questionnaires. Multiple regression model, descriptive statistics
and marketing margin analysis were used to achieve the objectives.
Socioeconomic factor such as sex, education, occupation, and years of
experience were significant at 1% level for production with an R- square of
about 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 dominated
by females, while both sexes had almost equal percentage in the marketing of
the product. More retailers (76%) bought groundnut oil directly from the
producers at more frequent intervals because they had low capital base. But the
wholesalers (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
per annum. The wholesaler’s margin was 28% with a Net Income of N 615,
960.00 per annum, while the retailer’s margin was 36% with a Net Income of N
201,636.00 per annum. The total marketing margin was 100. The constraints of
notable importance that affected production were lack of capital (92%), high
cost of groundnut (82%), poor variety (50%), and crude processing method (70%).
For marketing, high cost of groundnut oil (92%), high interest rate on borrowed
money (80%) and fluctuation in price of groundnut oil (70%) and competition
from other vegetable oils (50%). The production and marketing of groundnut oil
if given a favourable environment by reducing the problems facing the industry
to its barest minimum would thrive better. So, by way of recommendation,
research institutes should be encouraged through adequate funding to produce
high oil yielding varieties of groundnut. Loans should be made accessible and
at reasonable and affordable interest rate to producers and marketers. The
indigenous manufacturers should fabricate groundnut oil extractors and
groundnut oil producers encouraged to use them so that larger quantities of oil
would be produced to meet market demand at a relatively lower price. Proper
market information should be disseminated so that all the market players 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 unnecessary competition in the market.
CHAPTER
ONE
INTRODUCTION
1.1 Background
Information
Groundnut (Arachis hypogaea
L.) originated from South America (Wiess, 2000). It is one of the most popular
and universal crops cultivated in more than 100 countries in six continents;
Asia, Africa, Oceania, North and South America and Europe (Nwokolo, 1996;
ICRISAT, 1999).
Major groundnut producing countries are China (40
percent), India (23 percent) and Nigeria (8.4 percent) (World Bank, 2003).
Developing countries account for over 95 percent of total world groundnut area
and about 94 percent of total world production. Production is concentrated in
Asia and Africa, with Africa accounting for 35 percent of global area and 21 percent of total output mainly in
Nigeria, Senegal and Sudan (RMRDC, 2005). In Nigeria, groundnut is cultivated
mainly in the northern parts especially Kano, North Central, North West and
North Eastern states (RMRDC, 2005). World production of groundnut was 35.9
million tonnes. Asia remained the largest producer with 20.5 million tonnes,
India 10.9 million tonnes, and Africa, 4.5 million tonnes. According to RMRDC
(2005) report, the total output of groundnut for Nigeria as at 2002 was
1,976,490.80 tonnes with a range of 47.00 – 73,000 tonness for the States.
Bauchi State had the largest output (73,000 tonnes) followed by Nasarawa (70,420
tonnes) and Edo State had the least with 47.00 tonnes. The mean groundnut
output from farmer’s field for all the States was 15.72 tonnes. Sokoto State
had the highest mean output of 57.00 tonnes, followed by Benue with 52.0
tonnes, Jigawa 27.33 tonnes, Kano, 26.29 tonnes, Yobe, 25.70 tonnes, Zamfara,
25.55 tonnes and Kaduna, 22.67 tonnes. Abuja had the least with 2.25 tonnes.
Annual average production figure for Nigeria was 456 metric tonnes of groundnut
oil, 713 metric tonnes of groundnut cake and 2,652 metric tonnes of unshelled
groundnut (FAO, 2002).
Groundnut oil production is
actually a post-harvest operation which is referred to as processing.
Processing may be regarded as a way of converting harvested agricultural
produce into other forms of products that can be preserved over a long period
of time. In this case it is converting groundnut seeds into groundnut oil and
groundnut cake commonly called “kuli-kuli” in the North. Processing of
agricultural products serves as a source of additional income to the processor
as well as boost household food security especially among the rural poor. In
the process of transforming this product from subsistence to commercial,
socio-economic changes of the processor is vital as he
The extraction of oil from
groundnut constitutes an important agricultural processing activity for women
in Nigeria especially in the northern States. The process involves a number of
steps that include cleaning, roasting, de-skinning, kneading and frying and the
extraction of oil. The oil extraction process is mainly traditional,
characterized by drudgery and time consuming.
In Nigeria, groundnut oil accounts
for as much as 17 percent of the total agricultural export earnings because it
does not meet domestic demand. The shortfall in domestic demand is 300,000 to
400,000 metric tones (Ojowo, 2004). Its husk (shell) is used as fuel, roughage,
and litter for livestock, mulch, and manure and as soil conditioner (Misari,
1980).Groundnut seed contains 40-50 percent protein and 10-20 percent
carbohydrate. Groundnut seeds are nutritional sources of vitamin E, niacin,
flavin, calcium, phosphorous, magnesium, zinc, iron, riboflavin, thiamine and
potassium.
It is also used as animal feed, raw material for oil, cake
and fertilizers. The multiple uses of groundnut plant make it an excellent cash
crop for domestic markets as well as for foreign trade in several developing
and developed countries (Stigter,2006).Refined groundnut oil could be used in a
variety of manufactured food products such as biscuits, cakes, crisps and ready
meals. The unique property of stability and long shelf life can makes it a
preferred choice for frying. As stable oil, it is often used as a base for some
pharmaceutical products and minor food ingredients such as colours and
flavours. Groundnut oil is also used in the preparation of skin cream, for
instance, eczema cream though they could be problematic to those with a history
of allergy due to the presence of....
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