Costs and Returns of Groundnut Processing Among Rural Women in Sokoto State, Nigeria

Abstract

The research examined the costs and returns of groundnut processing in Sokoto State, Nigeria. Simple random sampling technique was used to select one hundred groundnut processors proportionate to the population. Data were generated through the use of structured questionnaire administered to the processors. Data were analyzed using descriptive statistics and farm budgeting technique (Net Farm Income). Result revealed that majority (84%) of Groundnut processors are between the ages of 21 – 40 years with a mean age of 31 years. The mean years of experience in groundnut processing are 13 years, while 66% of the processors were married. However, majority (93%) of the processors were illiterates. The result of the farm budgeting analysis revealed that the variable cost constituted 99.3% of the total cost of groundnut processing. Fixed capital accounted for 0.7%. This indicated that a typical processor realized a gross margin of N13, 873.35 and net farm income ofN14, 699.67 per 50kg. This showed that groundnut processors realized profit. From the foregoing, it could be concluded that groundnut processing in the study area is profitable. It is therefore economical for groundnut processors in the study area to invest more in groundnut processing because it is a profitable and lucrative business. In realization of the simple technology in yielding high productivity and as labour saving device, the government should intervene by providing more machines for oil extraction to processors on loan. Processors should be encouraged to form cooperative societies so that they can benefit from loan which could be allocated to them by the government for improving their capital investment.