Yakubu Sunusi, Ahmad, Sadiq Abubakar, Sadiq and Ruqayya, Abubakar, Isma’il
Volume 10 Issue 1
Groundnut (Arachishypogaea L.) is an important source of edible oil with oil content ranged between 48-50% depending on the varieties, protein ranged between 26-28% while carbohydrate, minerals and vitamin is between 11-27% making the crop as an important diet component. This study focused on the profitability of improved and local groundnut production among smallholder groundnut producers in Kano, Katsina and Jigawa states, Nigeria. The study area was divided into an Upscaling Project Area (UPA), where Groundnut Improved Production Practices (GIPP) was introduced and Non Project Area (NPA) where GIPP was not introduced. Multi-stage sampling techniques consisting of purposive and random sampling were used to select a total of 224, (112 from UPA and 112 from NPA) smallholder groundnut producers. Primary data used for the study were collected with the aid of a structured questionnaire. Gross Margin and chi square were used for data analysis. The findings revealed that, the cost of farm labour was the most important cost accounting for 52% in UPA and 40% in NPA. The pooled result revealed a gross profit margin of ₦60,136.22 and ₦18,256.00 in UPA and NPA respectively. The returns per Naira invested in the UPA and NPA were 0.91 and 0.37, respectively showing more return to Naira invested in the UPA compared to NPA. The computed Pearson Chi-Square revealed that, there is significant difference in the gross income of groundnut producers in the UPAs and NPAs. The study recommends that, Regular training to producers on up taking and adoption of GIPP would help increase their level of profitability and cash income. The findings may be of help to the groundnut producers, policy makers, NGOs and other stakeholders. Keywords: Groundnut, UPA, NPA, GIPP, Gross Margin