Appraisal of Groundnut Marketing in Yamaltu Deba Local Government Area of Gombe State, Nigeria
Erie GO2, Aina OS1* and Odegbade OO3
1Department of Cooperative Economics and Management, Federal College of Horticulture, Nigeria
2Department of Agricultural Economics and Extension, Ambrose Alli University, Nigeria
3Federal Government Girls’ College, Nigeria
Submission: May 07, 2019; Published: June 28, 2019
*Corresponding author: Aina OS, Department of Agricultural Economics and Extension, Faculty of Agriculture, Ambrose Alli University, Ekpoma, Edo State, Nigeria
How to cite this article: Erie GO, Aina OS, Odegbade OO. Appraisal of Groundnut Marketing in Yamaltu Deba Local Government Area of Gombe State, Nigeria. Int J Environ Sci Nat Res. 2019; 20(2): 556032. DOI:10.19080/IJESNR.2019.20.556032
The study carried out an appraisal of groundnut marketing in Yamaltu Deba Local Government Area of Gombe State. It specifically examined the socio-economic characteristics of groundnut marketers in the study area, determined profitability, examining market structure and analyzed the constraints to groundnut marketing in the study area. Primary data were collected from 70 groundnut marketers using two-stage sampling technique and structured questionnaire administered to them. Data collected were analyzed using descriptive statistics, gross margin analysis, Gini-Coefficient and market structure analysis. The studies revealed that majority (61.43%) of the respondents were male, married (37.14%) and had western education (84.29%). The profitability analysis showed that an average markers incurred a total variable cost N16,161,500 but earned an average revenue of N294,971.43 over the same period; and indication that an average marketer earned N64,092.86 as gross margin per year; suggesting that groundnut marketing is profitable venture in the study area. A Gini-coefficient of 0.48055 obtained in the study indicates a high level of concentration in the groundnut market. The major constraints to groundnut marketing are transportation, low demand and poor storage. It is recommended that transportation should be improved in term of good roads and storage facilities should be provided with subsidies insecticides to enhance more profit to the marketers.
Agricultural marketing is the process by which product flow, physically and economically from the producer to the final consumer in order to create exchange that satisfy the objective of industry, organization and the society. This marketing leads to the creation of farm product, place and time utility. (khols and Downey 1972) [1-3]. Khol & Downey  stated that agricultural marketing is concern with those productive activities that involve time, place, form and possession utility to agriculture commodities. The marketing of goods involves the movement of goods through intermediary in orderly manner to consumer. Individual business organization is all involving the task of moving the product from the point of production to the point of consumption . According to Adegeye & Dittoh  in subsistence economic where little or no exchange takes place marketing does not occupy any significant position. However, as the economic become increasingly commercialized leading to the growth other area, like urban wages earners marketing assumes greater important. This is because the excess production from the farm must be disposed of, in order to earn some income
with which the farmers can purchase other goods and services not produced by them. Olukosi & Isitor . Other importance of marketing according to Marion & Hardy  include the following:
a) Creation of job opportunity: marketing offer opportunity for rapid growth and advancement. A careful study of marketing will give the study a better idea about business and where the best opportunity for career.
b) Relate needs and desire of people with the producer product of enjoyment of service.
c) Marketing activities are used in many organizations: a variety of interesting challenging career opportunity are available in the marketing field some of these are personal activities, packaging, transporting, storage marketing whole selling and retailing.
d) Marketing activities persuade our everyday lives, it also allows us to achieve many improvements in the quality of our lives.
e) Marketing cost a sizeable part of buyer’s money. The
study of marketing activities will make you to be aware
of marketing activities cost money: most of the money is
censured in market.
Considering the importance of agricultural marketing,
Adegeye & Dittoh  opined that its study should be given
priority in most developing nation. According to them as the
economy grow, agricultural marketing will become more and
more complete and it efficient will then depend on the ‘’manager”
of the marketing system who themselves must be well informed
about what it takes to have an efficient marketing system.
Groundnut (Arachis hypogaea) is widely eaten and used for
making ground nut oil, ground nut butter, salted groundnut and
number of confectionaries tops peanut can die, brittle crispe
Carmel tops, peanut candy, bakery sweet Holadey (1979) and
Clodius & Mueller  revealed that groundnut can also be
processed to produced groundnut cheese peanut protein, peanut
milk. Peanut paste for seasoning vegetable boiled unshelled
fresh peanut and peanut bread Osuji  stated that groundnut
contain about 11%carbohydrate, 30% protein, 45% oil, 2% Ash
and 5% water. After oil extraction, the residues are good source
of protein useful in bakeries and in manufacture of livestock
feeds. The most commercial product of groundnut is peanut
candy which is sold in supermarket or hawked in the street.
Groundnuts or peanuts as they are sometimes called,
originated in Brazil they are one of the most valuable legume
crops of tropical and sub-tropical countries. They are both a
food crop and a cash crop they are exported mainly for their oil
groundnut oil is used in making margarine, cooking, salad oils
and soap. After the oil has been extracted, a dry cake is left with
a valuable, protein – rich for livestock feed. The dry cake can also
be rolled into rings and fried in oil to produce ‘’kuli – kuli’’.
Nigeria was until 1974 the world’s leading exporter of
groundnuts. Senegal, Gambia, and Niger are the other important
West African producers of this crop.
The broad objective of the study is appraising groundnut
system marketing in Yamaltu Deba LGA of Gombe state. The
specific objectives are to: Determine the socio-economic
characteristic of respondents in the study area, determine the
groundnut seller structure in the study area, evaluate costs and
returns of groundnut marketing and identify the constraints
associated with groundnut marketing in the study area.
The study was carried out in Yamaltu Deba Local Government
Area of Gombe State, located in north-eastern Nigeria. Yamaltu
Deba local government share border with Bayo local government
of Borno state to the North, Balanga, to the south, Gombe and
Akko local government to the east. Yamaltu Deba L.G.A has the
total land area of 1,981km (765)3% m and population 255, 248.
The study area located at latitude of 110 30N, longitude 100
20E and latitude of 24m above the sea level, the area received
total annual rainfall of the about 760 - 1100mm per annum
and temperature ranges between 240c to 480c. The soil type
is loam, clay, clay loam soil that is suitable for most crops. The
area consists of two (2) major seasons namely the rainy season
and the dry season. The rainy season start from April and ends
in September while the dry season starts October and end in
March. The people in the area of study involved in both rainy and
dry season farming the result of the high temperature give room
for high evaporation and thus less moisture available for plant.
Crops grown in the area are groundnut, maize, millet. Local
government comprises of nineteen (19) district namely Kwadon,
Zambuk, Kurba, Hinna, Liji, Wade, Shinga, Gwani, Kinafa, Gwali,
Lano, Kuri, Dumbu, Jagali, Kurjale, Lubo, Difa, Dadin-kowa and
Deba. The occupants are mostly Tera and other tribes are Yoruba,
Igbo and Fulani the main occupation of the inhabitant is mostly
farming and trading very few are civil and public servants.
A multistage random sampling technique will be adopted to
select four (4) markets in the study area. The four (4) markets
selected are Kwadon, Dadin-kowa, Kuri and Zambuk. Out of the
four (4) markets selected 20 marketers were selected to give a
total number of 80 respondents that were used for the study.
Primary data were collected using structured questionnaire
and oral interview, the information contained in the primary data
include the socio – economic characteristics of the respondent
such as age, sex and educational qualification.
Simple descriptive statistics such as mean score, frequency
count and percentage range were used to satisfy objective 1, and
4 while market margin analysis was used to satisfy objective 3
of the study and Gini coefficient was used for objective (2). The
model is express as follows:
The market margin for objective 3 is expressed as.
Socio-economic characteristics are known to influence the
decision behavior of the respondents . Such demographic
variables considered are; Gender, Marital status, Household
size, Education background, Source of income, Experience in
Table 1 Shows that 61.43% of the respondents were male
and 38.57% were female. This shows that majority of the
respondents in groundnut marketing in the study area were
male as a result of catering for their family needs. And this also
since most of the women are in purdah because they are Muslim.
The field survey data also shows that 37.14% of respondent
were married while 34.29% were single, widows and divorce
were 28.58%. This shows that majority of the marketers were
married and have family responsibilities. Household size is an
important source of family labour. Majority (78.57%) of the
respondents have their household size, greater than five. The
modal household size is 6-10.
The Field survey data shows that 84.29% of the respondents
had western education and 10% had Qur’anic education this
shows that majority of groundnut marketers are literate and
have access to information which in turn will affect their
decision making positively. Majority (58.57%) source their
capital through personal savings; while 28.57% and 10%
source their capital through cooperative, friends and relatives
respectively. Only 2.86% source their capital from the bank. The
results indicate that majority of the respondents got their capital
source through personal saving and the capital from this source
is usually very small. This may be one of the reasons why they
trade on a small scale. The study also revealed that the average
numbers of years of groundnut marketing experience is 10 years
and 88.57% of the respondents have an experience above five
years while 11.43% are below 5 years. This indicated that the
respondents are experienced in groundnut marketing.
Gini co-efficient = 1 –Σxy
The Gini-coefficient for groundnut market in the study
area shown in Table 2 was 0.48055. This result indicates a high
level of concentration and consequently high inefficiency in the
market structure for groundnuts in the study area. This was in
line with Dillion & Hardaker  in their finding that the value of
Gini-co-efficient greater th
The result in Table 3 showed that acquisition cost gulped
93.5% of the total variable cost, while the cost of labour
accounted for 2.67% of the total variable cost. The cost of
storage accounted for 0.07% of the total variable cost while tax/
levy accounted for 0.16% of the total variable cost. Only 3.59%
of the total variable cost was expended on transportation. The
table also revealed that an average marketer incurred a total
variable cost of N16,161,500 but earned an average revenue
of N294,971.43 over the same period. This indicate that an
average marketer earned N64,092.86 as gross margin per year,
suggesting that groundnut marketing is profitable venture in the
The analysis revealed in Table 4, shows that transportation
problem ranked first of the constraints considered. One possible
explanation for this is that marketers travel long distance to meet
consumers residing in urban areas. The distance to the point
of sales could affect the quality and cost of groundnut which
consequently increase the marketing cost and thereby reducing
the profit margin. Next to transportation was low demand
occasioned by price variation. Third in the ranking was poor
storage which can affect the quality if not properly stored with
good insecticides, pesticides and in-turn affect the sale price.
The time period between harvesting and consumption brings
about the need for storage. Spoilage remains the consequences
of poor storage. This is supported by most of the groundnut
marketers who claimed storage problem constitutes a very
serious problem in groundnut marketing. Table 4 also revealed
that thefts and access to adequate loan is a serious problem in
groundnut marketing. This is also supported by the fact that most
groundnut marketers finance their business through personal
savings. Given the low income of the marketers only little can be
expected from their savings. Climatic factors constitute a serious
problem to groundnut marketers in the study area. Climatic
factor like sunlight, humidity and rainfall affect groundnut after
harvesting. They are also affected between the period of harvest
and distribution period to consumers. Unavailability of laboured
was also considered.
Most groundnut marketers were male, married, experienced,
literate and source their capital through personal savings.
Groundnut marketing is profitable ventures in the study area
with high level of concentration in the groundnut market. The
major constrains to groundnut marketing in the study area are
transportation, low demand, poor storage, theft and lack of
access to credit.
Based on the findings of this study the following
recommendations were made.
a) In order to curtail the problem of inadequate capital,
development bank such as Nigerian Agricultural Cooperative
Banks or micro finance bank and other commercial
bank should encourage the groundnut marketer by grant
loan at low interest rate in order to empower the marketers
to improved and expand their business.
b) Poor transportation; There is need for local government
to construct durable road in the rural area where all
agricultural products are produced in order to link them
with market and other points. This will help to increase the
availability of groundnut and therefore reduce the cost of
c) Poor storage (Market facilities) can be tackling through
government assistance in constructing market structures
and provides other market facilities in the study area,
to facilitate market activities in general and groundnut
marketing. That is improving storage facilities of groundnut
should be provided for the marketers by the government
and co-operatives should also assists in building storage
facilities to the marketers, this will help to curtail the loss of
d) The problem of low demand of groundnut received
by the marketers, the government should promote the
transportation of the commodity and boost the purchasing
power of local consumers.
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