Competitiveness of Groundnut Processing in Adamawa State, Nigeria

Abstract

The research is financed by Kwaji Emmanuel, Student of Agricultural Economics and Environmental Policy programme (M.AgSE), Centre of Excellence in Agricultural Development and Sustainable Environment. Federal University of Agriculture (FUNAAB), Abeokuta, Nigeria.

Abstract

The study assessed the competitiveness of groundnut processing in Adamawa State, Nigeria. The objective was to examine the competitiveness of groundnut processing in the study area. Secondary and primary data were used; structured questionnaire was used to collect primary data from 200 groundnut processors using multistage sampling procedure from 10 selected Local Government Area. The data were analyzed using policy analysis matrix (PAM). The analysis revealed that the processors private profit was (₦5,153,672.4/MT), social profitability (₦-6,112,076.31/MT). Results of sensitivity analysis revealed that groundnut processing is competitive in Adamawa State  and DRC ratio still remain negative indicating that the processing of groundnut does not have comparative advantage at social price. The study recommends that; Policy makers should discourage any policy measures to import groundnut or groundnut products and encourage the domestic production that will boost output to ensure availability of raw groundnut throughout the year for groundnut processors.

Keywords: competitiveness, groundnut, processing, matrix, policy

DOI: 10.7176/JBAH/11-24-03

Publication date: December 31^st 2021