Economics of Groundnut Marketing in Northern Taraba State, Nigeria

Abstract

The study examined the economics of groundnut marketing in the northern part of Taraba State, Nigeria, with specific focus on Ardo-Kola and Zing Local Government Areas. The objectives were to describe the socio-economic characteristics of groundnut marketers, analyze the marketing margin, identify the marketing channels, and examine the constraints associated with groundnut marketing. A multistage sampling technique was used to select 184 respondents proportionally from the population of groundnut marketers. Data were collected using a structured questionnaire and analyzed with descriptive statistics and the marketing margin model. Findings revealed that the majority (61%) of the respondents were female and married, with an average age of 42 years. Most (65%) had household sizes ranging from 6–10 persons, possessed formal education, and had between 6–10 years of marketing experience. The study further showed that 40% of respondents earned between ₦100,000 and ₦150,000 annually and sourced groundnuts directly from farmers. Analysis of marketing margins indicated that groundnut marketing is profitable, with Zing LGA recording a higher gross margin of ₦98,269.39 compared to ₦89,767.69 in Ardo-Kola LGA. Zing marketers also realized a higher net margin (₦31,446.14) than those in Ardo-Kola (₦23,938.05). The main constraint identified was inadequate access to storage and processing facilities, which reduces marketing efficiency and profitability. Based on these findings, the study recommends that government and development partners should invest in improved storage and processing infrastructure to reduce post-harvest losses and enhance value addition. Capacity-building programs should target female marketers to strengthen their business and record-keeping skills. Additionally, strengthening rural road networks and market linkages between producers and marketers will further enhance profit margins, while improving access to microcredit facilities will enable marketers to expand their operations and increase competitiveness.