PROFITABILTY ANALYSIS OF CASHEW PRODCUTION IN ANKPA LOCAL GOVERNMENT AREA OF KOG

ABSTRACT

The study was aimed at examining the profitability analysis of cashew production in anpka local government area of kogi state, Nigeria.  It involves the collection of primary data from a sample of 110 cashew farmers in the study area.  The analysis of data was done through a combination of descriptive statistics, gross margin analysis and profitability analysis, the result  showed majority of the farmers were male(68.18%), and most of them were married (70%) with most (50%) having an household size of 7-9. Most of the cashew farmers in the study area have formal education that can enable them to read and write with most (52.73%) having a farming experience of 11-15 which implies that most of the farmers are experience, the result also showed that fix cost accounted for 18.16% of the seasonal cashew production while variable cost  account for 81.84%.  The profitability analysis shows that cashew production in the area could generate a rate of return to capital and family labour  of 74% and a return on naira invested of 74kobo.  The study concluded that, even though cashew production is economically vaiable in the study area, the following problems have imposed a severe  limitation on the expansion of the enterprise.  These include poor road network, inadequate capital/found,  low prising due to seasonal glut  in the market, lack of improved planting materials among others.  To ameliorate these problems, the study therefore ,  recommended that efforts should be directed towards providing credit to current and potential cashew producers so as to boost production.  Furthermore,  establishment of fruit (cashew) processing industries in the state will cushion the problem of wastage and reduces forced sale of the product particularly during harvesting season.

TABLE OF CONTENTS

Declerationi

Certificationii

Dedicationiii

Acknowledgementiv

Abstractv

1.0  INTRODUCTION1

1.1 Background To The Study1

1.2    Statement Of The Problem3

1.3 Research Questions4

1.4 Objective Of The Study4

1.5 Hypotheses Of The Study5

1.6  Significance Of The Study5

1.7 Scope And Limitation Of The Study5

1.8 Definition Of Terms6

2.0 LITERATURE REVIEW7

2.1 Cashew Production In Nigeria7

2.2 Constraints Of  Cashew Production9

2.3 Socio Economic Characteristic Of Cashew Farmers11

2.4constraints Of Cashew Fruit Production13

3.0 METHODOLOGY15

3.1   The Study Area15

3.2  Population And Sampling Procedure16

3.3 Methods Of  Data Collection16

3.4  Validation Of Reliability Of Instrument17

3.5  Measurement Of Variables17

3.6 Method Of  Data Analysis18

4.0  RESULTS AND DISCUSSION20

4.1 Socio-Economic Characteristics Of Respondents20

4.2 Analysis Of Cost And Returns25

4.3   Profitability Analysis Of Cashew Production27

4.4  Problems Of Cashew Production29

5.0 CONCLUSION AND RECOMMENDATIONS31

5.1    Conclusion31

5.2    Recommendations31

5.3    Contribution To Knowledge32

5.4   Suggestion For Further Study.32

References33