Economic analysis of cashew nut marketing in Udi Local Government Area, Enugu State, Nigeria

Abstract

Cashew nut (Anacardium occidentale L) is one of the most essential and major cash crops produced in Nigeria. This research, therefore, explored the economics of cashew nuts marketing in Udi Local Government Area of Enugu State, Nigeria. Primary data were sourced from cashew nut marketers through the use of well-designed questionnaires. Sixty respondents were randomly selected from three main markets in the study area. Descriptive statistics and (OLS) multiple regression models were used to achieve the study objectives. Descriptive statistics and (OLS) multiple regression models were used to achieve the objectives. Wherefore the study identified the marketing channels, analysed the cost and returns of the enterprise, determined the socio-economic factors affecting the quantity of cashew nuts marketed, and ascertained the constraints associated with cashew nuts marketing in the study area. From the results, the market was dominated by males (65%), most of the respondents (51.7%) were between 21 and 40 years, and majority were married (81.7%). An average number of the marketers (50%) had secondary school education, while 31.7% and 18.7% had primary and higher education, respectively. Most of the marketers (63.3%) bought directly from farmers, while 26.7% purchased from wholesalers. Total revenue, gross profit, and net profit were respectively ₦651,627.00, ₦120,618.00, and ₦81,067.70, showing that the business is profitable. Respondents’ socioeconomic characteristics which significantly affected quantity of cashew nut marketed were age (p < 0.1), household size (p < 0.05), and membership to market association (p < 0.05). Major constraints were seasonality of produce, high cost of transportation, bad weather (rain), and inadequate capital. It was recommended that government should provide good road networks to ease transportation problem. The marketers should form cooperative societies to facilitate easy access to credits and other relevant resources.