International Journal of Agricultural Policy and Research
Vol.3 (3), pp. 114-121, March 2015
Available online at https://www.journalissues.org/IJAPR/
Article 15/ID/JPR010/ 08 pages
Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.
Original Research Article
Profitability and structural analysis of cashew nut market in Oyo State, Nigeria
Oladejo, Joana Adefemi
Department of Agricultural Economics, Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria.
Author’s E-mail: jaoladejo(at)lautech.edu.ng
This study analyzed the structure of cashew nut market and profitability of the enterprise in Oyo State of Nigeria. The specific objectives were to examine the socio-economic characteristics of the respondents, investigate the marketing activities, analyze the cost and returns associated with cashew nut marketing, examine the structure of cashew nut market and identify challenges faced by cashew nut marketers in the study area. Respondents were selected based on multistage sampling technique. Data were collected from two hundred and forty respondents with the aid of a structured interview schedule. The data were analyzed using both descriptive and inferential statistical tools. The study showed that the average age of cashew nut marketers in the study area was 40.53years, 91.7% of the cashew nut marketers were male, average number of years spent in school was 14.07years. On the average, respondents claimed 10.28 years of cashew nut marketing experience. The result also showed that the major challenge to the enterprise is market price fluctuation. Cashew nut marketing enterprise was found to be profitable with gross margin of N 53,168.31 per ton of cashew nut transacted and benefit cost ratio (BCR) of 2.01. Market structure analysis suggests that the market does not operate in a perfectly competitive atmosphere in the study area. The study recommended that cashew nut marketers should form registered trade union through which a solution could be sought to the challenge of market price fluctuation in the study area.
Key words: Structure, profitability, cashew nut, market, Lorenz curve, gini coefficient