Groundnut Oil Production and Marketing in Kaduna State, Nigeria.

Groundnut Oil Production and Marketing in Kaduna State, Nigeria.

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Abstract on Groundnut Oil Production and Marketing in Kaduna State, Nigeria.

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

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