Economic Analysis of Cashew Nut Production in Saki East Local Government Area, Oyo State, Nigeria

Abstract

This study examined the economic analysis of cashew nut production in Saki East Local Government Area, Oyo State, Nigeria. A total of 120 cashew producers were sampled through multi stage random sampling technique. Data were analysed using descriptive statistics, gross margin analysis and likert scale model. It was revealed that majority of the cashew producers are male (69.2%), most (37.5) of the respondents fell within the active range of 41-50 years, with a mean household size of 8. The gross margin analysis revealed that the average total cost incurred by the respondents per month was ₦54,311.84 while total revenue of ₦1,158,695.83 was realized thereby returning gross margin of ₦1,104,383.99 and net margin of ₦274,112.66. The rate of return was 0.31 which implies that, for every ₦1.00 invested in the cashew nut production an outcome of 0.31kobo is generated or expected. It further confirmed that, cashew nut production in the study area is profitable. The likert scale model revealed that the major constraints facing cashew producers in the study area were: lack of processing facilities (3.02), inadequate extension visits (2.80), inadequate capital (2.57), and insufficient knowledge of credit sources (2.18), storage facilities (2.14) and other. The government should ensure provision of modern technologies to the cashew farmers at affordable price, availability of extension officers and availability of capitals (loans) to the cashew farmers.