Groundnut Marketing Research Articles

An Investigation in to the Spatial Groundnut Market Integration in Ethiopia: Application of Vector Error Correction Approach 

An Investigation in to the Spatial Groundnut Market Integration in Ethiopia: Application of Vector Error Correction Approach 

Market Integration of Small-Scale Farms: Exploring the Bambara Groundnut Markets in Nigeria

The extent of uncertainty caused by price inefficiency and instability with reference to Bambara groundnut has made the subsector a dicey one. Markets that are not integrated may convey inaccurate price signals that might distort producers’ marketing decisions and contribute to inefficient product movement. The study analyzed the market integration of Bambara groundnut in South-east, Nigeria. The study population comprised all Bambara groundnut marketers in South-east, Nigeria. Out of the five states in South-east, Nigeria, two States will be purposively selected as the study area to establish the movement of prices between the two states to establish a fair comparison of prices between the producing zone and consumption zone. The choice of the two states was based on the predominance of Bambara groundnut marketers. A two-stage sampling technique was adopted in selecting 221 respondents that were interviewed for the study. Data for this study was poised from primary sources using a well-structured questionnaire, oral interviews and direct observations of Bambara groundnut marketers and was analyzed using descriptive and inferential statistics.- The results of the VECM showed that Enugu urban retail prices had a short-run influence of -0.057 although not signicant and a long-run significant influence of -0.2391 on Abia urban retail prices. The results of the VECM estimates for both short-run and long-run relationships indicated that the Enugu rural price of Bambara groundnut had short-run influences of -0.034023 and 0.0032032 with a long-run influence of -0.203230 on Abia rural price. The study recommended that to improve pricing effectiveness and market integration, it is necessary to encourage Bambara groundnut market price information in South-east Nigeria. The flow of information regarding Bambara groundnut prices, demand, and supply will improve both market integration and pricing effacing. The government should create regulations for information services. How to Cite: Agbo Josephine Nkechi, Okpukpara Benjamin C., Ude Kingsley David, Udemba Klinsmann Uche., 2023. "Market Integration of Small-Scale Farms: Exploring the Bambara Groundnut Markets in Nigeria." Journal of Agriculture and Crops, vol. 10, pp. 11-19.

An Economic Analysis of Marketing and Disposal Pattern of Groundnut in Surguja District of Chhattisgarh, India

This study is confined to an economic analysis of marketing and constraints of groundnut in the Surguja district of Chhattisgarh, India. The 90 respondents were interviewed for the study during the year 2015-16. The main objective of the study is to analyze marketing cost, price spread and constraints in marketing of groundnut. Major findings of the study revealed that at their place three marketing channels identified for the groundnut marketing in Sarguja district viz., were Channel – I: Producer → Consumer, Channel – II: Producer → Village Merchants/ Retailers → Consumer, Channel – III: Producer → Commission Agents/ Wholesaler → Retailer → Consumer. The total marketing cost was higher in Channel III (Rs. 365.38) Compared to Channel I and Channel II. and the total marketing margin and price spread was also seen higher in Channel III Rs. (1457.22 and 635.00) because in the Channel III there were two intermediates, whereas in channel I and channel II there was only one Intermediates respectively. The producer share in the consumer rupee was higher in the channel I (97.55%). The market efficiency was higher in Channel I (40.98 %).

Market participation of smallholder groundnut farmers in Northern Ghana: Generalised double-hurdle model approach

Market participation is both a cause and a consequence of economic development. Markets offer households the opportunity to specialize according to comparative advantage and thereby enjoy welfare gains from trade. The current literature on product marketing in Ghana is inadequate for designing and implementing effective policies to overcome problems in the marketing system, especially leguminous crops. Based on this, the study analyses the determinants of groundnut farmers’ decision to participate and the level of market participation in Northern Ghana using cross-sectional data from 250 smallholder farmers. We employed the generalized double hurdle model to analyse the objectives of this study. On average, the study found that 62% of groundnut output harvested by farm households in Northern Ghana was sold on the market. The most significant determinants of market participation decision and intensity of participation in the groundnut market include extension service, distance to output market, farmer-based organization, off-farm income, output price, use of improved groundnut variety, and access to transport. We recommend that strategies and policies aiming at promoting smallholder commercialization should focus on providing rural infrastructure, market-oriented extension services, and forming farmer groups for collective marketing.

Determinants of groundnut producers’ market channel choice in Western Oromia region, Ethiopia

Lack of adequate number of groundnut farmers' market channels remain long lasting problems in the study area. However, the choice of an appropriate market channel enables farmers to get reasonable profits from groundnut production. This study aimed to identify the existing groundnut market channels and to analyze determinants of channel choice decisions of smallholder groundnut producers in Western Oromia. A multi-stage sampling technique was used to select 400 sample household heads. Primary data were collected using a pre-tested semi-structured questionnaire and through key informant interviews using checklists. Multivariate probit (MVP) model was used to analyze determinants of groundnut market channel choices. The model resulted from that level of education, distance from the nearest market, access to market information, cooperative membership, trust in buyers, access to credit, the quantity of groundnut sold, own transport facilities, and access to off/non-farm income affected the probability of households in combination to select collector, wholesaler, retailer, and consumer market channels at different significance levels. The findings of the study suggest that there is a need for all concerned bodies like government to create market linkage between farmers and buyers, provide improved seed and other production inputs while farmers should maximize quantity of groundnut produced through accessing improved seed and other production inputs and market related development bodies should help in organizing farmers’ groundnut cooperatives. Similarly, strengthening micro financial institution to provide credit for groundnut producers is the area where interventions required.

Potential impact of groundnut production technology on welfare of smallholder farmers in Ghana.

This study was conducted to assess the potential impact of applying a new groundnut planting density on welfare of smallholder farmers in northern Ghana. We used data from on-farm experiments, focus group discussions, and a household survey. We followed three steps in our analysis. First, we conducted cost-benefit analysis in which we showed the economic advantage of the new technology over the farmers’ practice. Second, we predicted adoption rates along timeline using the Adoption and Diffusion Outcome Prediction Tool (ADOPT). Third, using the results of the first and the second steps, we estimated the potential impact of the technology on poverty at household level using a combination of methods such as economic surplus model and econometric model. The cost-benefit analysis shows that increasing plant density increases farmers’ financial returns i.e., the benefit-cost-ratio increases from 1.05 under farmers’ practice to 1.87 under the best plant density option, which is 22 plants/sqm. The adoption prediction analysis shows that the maximum adoption rate for the best practice will be 62% which will take about nine years to reach. At the maximum adoption rate the incidence of extreme poverty will be reduced by about 3.6% if farmers have access to the international groundnut market and by about 2% if they do not have. The intervention will also reduce poverty gap and poverty severity. The results suggest that policy actions which can improve farmers’ access to the international market will enhance farmers’ welfare more than the situation in which farmers have access to domestic markets only. Furthermore, promoting a more integrated groundnut value-chain can broaden the demand base of the produce resulting in higher and sustainable impact of the technology on the welfare of groundnut producers and beyond.

PROFITABILITY ANALYSIS OF BAMBARA GROUND NUT MARKETING IN ENUGU METROPOLIS, ENUGU STATE, NIGERIA

This study explored the profitability of raw Bambara groundnut marketing in Enugu Metropolis, Enugu State, Nigeria. Multi-stage survey design was used to sample 60 respondents by means of well structured questionnaire. Descriptive and inferential statistics were used to realise the objectives. Majority of the respondents (78.3%) were males; the modal age was 43-53; mean years spent in school was 16.07 years. Only (28.3%) had access to credit, while (71.7%) financed their businesses through personal savings. Quantity of bambara groundnut sold was significantly and positively influenced by: household size (p < 0.05); access to credit (p < 0.01); and access to market information (p < 0.01). The following results were also observed: GPM 16.5%, NPM 14.7%, BCR 1.17:1, and ROI 17.3%. Major constraints include: inadequate finance with mean score of (3.93), seasonal price fluctuations (3.93), poor road network (3.70), weevil attacks (3.23) and high cost of goods (3.28). The study recommends that the relevant government agencies should formulate policies that will enable the marketers to have access to cheap credit facilities for expansions and even for new entrants, in order to reduce unemployment and poverty levels in the area. Good road networks and commodity storage systems should be provided by the agencies to ensure easy movement of goods, as well as curtail post-harvest losses. Also, the marketers should form/join cooperative societies, and other market associations for easy access to finance and other resources.

Performance of Groundnut Marketing in Song Local Government Area, Adamawa State, Nigeria

The study analyzed groundnut marketing in Song Local Government Area of Adamawa State, Nigeria. Primary data were used for the study and were collected from two major markets, and three local markets that were purposively selected for the study. The major markets selected were Song main market and Dumne market, while the local markets selected were Golantabal, Loko and Murke (Bariki) markets. Random sampling was used in selecting 39 wholesalers and 101 retailers from these markets. The analytical tools used were frequency distribution tables, Gross and Marketing Margin analyses and Marketing Efficiency. The findings revealed that groundnut marketing is profitable with a gross margin of N25,427.58 and N550,817.94 per week for retailers and wholesalers respectively. The marketing margins for retailers and wholesalers were estimated at 18.28% and 15.97% shares respectively, while their corresponding marketing efficiencies were estimated at 114.5% and 115.5% respectively, this is an indication of good market performance. The major constraints affecting groundnut marketers include lack of credit facilities (77%) and high cost of transportation (71%). The study recommends that lending agencies should provide more credit facilities to groundnut marketers at concessionary rates to boost their business activities. Also, feeder roads should be rehabilitated/constructed to reduce transportation cost; storage facilities should be provided in the market places by the government, non-governmental associations and other market associations so as to reduce losses of the commodity in storage which causes price fluctuation.

Analysis of intra-region market integration and spatial price transmission in groundnut markets in Malawi

ABSTRACT Agricultural marketing has overwhelmingly received policy reforms indeveloping countries, Malawi included. In response to these policyreforms, extensive research on market cointegration has been conducted in evaluating the market performance of various agricultural commodities. In Malawi, literature on groundnut market cointegration is scanty. This study was aimed at understanding price co-movement in groundnut markets in Malawi. Agricultural Market Information System (AMIS) data on groundnut prices from 2005 to 2018 were used. The Vector Error Correction Model was used to analyse the extent of market cointegration, both in the long and the short run. The speeds of adjustments in groundnut markets were found to be very slow. It takes long for the systems to revert back to equilibriums in the long run. In all regions, very few markets are cointegrated. Although the speed of adjustment is slow in most of the cointegrating vectors, Southern region markets depict the fastest speed of adjustment towards long run equilibrium. Irrespective of the speed of adjustment, more markets are cointegrated in northern and central regions than in the southern region. Relevant policies are needed that promote smooth flow of information from surplus to deficit areas. Market infrastructure is also needed in the country.

ANALYSIS OF STRUCTURE AND PERFORMANCE OF GROUNDNUT MARKETING IN NIGER STATE, NIGERIA

The study analyzed the structure and performance of groundnut marketing in Niger State, Nigeria. Multi-stage sampling technique was used to sample 92 marketers and data was collected with the aid of a well-structured questionnaire. The data were analyzed using descriptive statistics, Gini coefficient, and gross margin analysis. The result revealed that the mean age of groundnut marketers was 35 years; 54.3% of respondents were female; 73.9% married; 38.0% had no formal education and 10.59 mean years of marketing experience. The result further revealed a Gini coefficient of 0.66 which is an indication of high level of concentration in the market; and gross margin of ₦7,929.63 was realized per 100kg bag of groundnut marketed. The study also found lack of credit facilities as the major problem encountered by marketers. Recommendations made include, formation of cooperative organizations among traders and price regulatory agencies should be strengthen and enlighten on the need to stabilize the price of groundnut.

Factors affecting groundnut market supply in Western Oromia, Ethiopia

Groundnut production is important for consumption, income generation and improves food security of smallholder farmers in Western Oromia. Unlike its importance its production has less concern and it's marketing is challenged by the amount produced. The study aimed to analyze determinants of groundnut market supply in western Oromia region, Ethiopia. In order to do this, both primary and secondary data were used to collect qualitative and quantitative data. A multi-stage sampling technique was used to select samples of groundnut producers from the study area. Primary data were collected from randomly select 400 sampled groundnut producers through a semi-structured questionnaire. The multiple linear regression models was used to analyze determinants of groundnut market supply. The results of the model indicated that age, sex, educational level, access to credit services, number of livestock owned, land allocated for groundnut production and distance from the nearest market statistically and significantly affected market supply of the groundnut. Therefore, the study forward that government, non-governmental organization and financial institutions should give attention to grant credit, train farmers to properly utilize their land, develop and strengthening infrastructural service like road to improve groundnut production and sales thereby to increase benefits of farmers from the groundnut production in Western Oromia.

Analysis of Groundnut Marketing in Thiruvannamalai District of Tamil Nadu

Analysis of Groundnut Marketing in Thiruvannamalai District of Tamil Nadu

Some Nutritional and Physical Properties of Different Zambian Market Classes of Bambara Groundnut (Vigna subterranea)

Selected nutritional and physical properties of the two commonly cultivated Zambian market classes of Bambara groundnut (red and brown) were investigated to establish their end-user traits. Nutritional (essential amino acids, proximate and mineral compositions) and physical (hydration capacity, hydration index, swelling capacity, swelling index and 100 seed mass) properties were investigated using established standard methods. All the essential amino acids were present in both the red and brown Bambara groundnuts. The highest amount was recorded for leucine (9.7 g/100g protein) in the brown Bambara groundnut and least for methionine (1.2 g/100g protein) in the red market class. All the essential amino acids except methionine in the brown Bambara groundnut market class were above the recommended WHO/FAO provisional requirements for children (2 – 5 years) and adults. The crude protein values ranged from 14.62-18.55 g/100g, total ash (4.21 – 4.29 g/100g), crude fibre (2.79 – 5.33 g/100g), fat (6.28 – 6.54 g/100g), moisture (8.95 – 9.13 g/100g) and carbohydrate (59.23 – 60.34 g/100g). Potassium was found to be the most concentrated mineral in both market classes, followed by phosphorous, magnesium and calcium, while lead, mercury and arsenic were not detected. The swelling capacity, swelling index, hydration capacity, and hydration index of the two market classes of Bambara groundnuts were not significantly different, whereas their 100 seed mass was significantly different, with the brown recording the highest.

Appraisal of Groundnut Marketing in Yamaltu Deba Local Government Area of Gombe State, Nigeria

Appraisal of Groundnut Marketing in Yamaltu Deba Local Government Area of Gombe State, Nigeria

Structure, Conduct and Performance of Groundnut Markets: The Case of Fogera Woreda, South Gondar Zone of Amhara Regional State

This paper looks at and assesses the structure, conduct and performance of groundnut markets in Fogera Woreda, South Gondar Zone of Amhara Regional State. Households and traders concerned in groundnut were interviewed for obtaining primary data. The study was conducted by incorporating from two kebeles of 175 groundnut producing households and seven markets of 34 traders. A multi stage sampling procedures were employed to select sample producers while for groundnut traders snowball sampling techniques was used. The result shows that nine major groundnut marketing channels were identified and using the respondents a total of 7432.8 quintals of groundnuts were transacted in 2015/16 production season and among its rural assemblers and urban wholesalers purchased about 66.7% and 29.33% of the total produce respectively. The analysis of the market structure indicates that the concentration ratio of 76.61% at Bahirdar market, which shows an oligopolistic market structure and which resulted in a groundnut market conduct characterized by a market strategy in which the traders have an upper hand in fixing the price of the groundnut as well as effecting payment by the time in favor of the traders. Concerning the market performance, the findings show that the benefit from groundnut marketing is skewed to few actors in the market chain. Notably, street vendors had the highest gross marketing margin with estimated share of 51% found in the channel III and followed processors and urban retailers with estimated share of 43.7% and 38.89% in channel I and II of the consumer’s price respectively. The highest total gross marketing margin found in channel IX which accounts for 64.81% of the consumer’s price and followed by channel VII and VIII which accounts each with estimated share of 64.05% of the consumer’s price. The lowest producers’ share is appropriated in channel IX which accounts 35.19% of the consumer’s price. The findings from this study, so strongly recommended that establishing well organized cooperatives for reducing the inefficiency due to high marketing margin as well as the oligopolistic market structure.

Determinants of Groundnut Market Supply: The Case of Fogera Woreda, South Gondar Zone of Amhara Regional State

This research tried to analyze the determinants of groundnut market supply in Fogera Woreda, South Gondar Zone of Amhara Regional State. Groundnut (Arachis hypogea L.) is an important cash crop and contributing as both food security as well as sources of income generation for many smallholder producers which improves their living standards. However, improving groundnut producers to arrive at market is a key concern desired in the study area. Hence, this study aimed to identify factors determined household’s groundnut supply to the markets using survey data collected from randomly selected 175 groundnut producing producers. Descriptive statistics was used for socio-economic characteristics of groundnut producers and econometric analysis was used for determinants of groundnut supply to the markets. Ordinary least square estimation result indicated that education level, numbers of oxen owned, number of family size, land size, quantity produced, farming experience, extension service and credit service were significant predictors of groundnut marketed supply. This study was recommended that improving the extension and credit service system is an imperative to accelerate groundnut market development particularly in the study area and generally in the country at large.

Groundnut Production and Storage in the Sahel: Challenges and Opportunities in the Maradi and Zinder Regions of Niger.

Groundnut Arachis hypogaea (L.), is an important legume crop after cowpea Vigna unguiculata (L. Walp) in Niger. However, there has been a decline in its economic importance due to several challenges. A survey of 800 farmers was conducted in 40 villages in the Maradi and Zinder regions to assess constraints and opportunities to improve groundnut production and marketing. Average land size and yield varied by region: 1.3 ha per farmer and 461.3 kg ha-1 in Maradi, and 1.7 ha per farmer and 417.2 kg ha-1 in Zinder. Insect pests (aphids) were the most important production constraint. Groundnut is typically stored for six to eight months after harvest but 91% of farmers do not take any precautions to protect the grain. Storage enables farmers to earn high profit margins of up to 33 and 113% for unshelled and shelled groundnuts, respectively. Most farmers (71.5%) sell their groundnut in unshelled form in local and urban markets. Traders are the main buyers according to 61.7% of farmers while processors were mentioned as purchasers by less than 20%. Sales are mostly done by individual farmers while very little is sold through cooperatives. Given that groundnut is a profitable crop adapted to the Sahelian zone, there is need to improve its production, storage, and value addition through processing.

The Determinants of Consumers’ Preference for Value Added Groundnut in Esan West Local Government Area of Edo State

As the world is drifting into globalization with attendant competition coupled with rise in income of consumers, providers of goods and services are becoming extremely conscious of what goods and services they produce or render tomeet and satisfy the ever sophisticated and differentiated consumer’s needs. The study examined the determinants of consumers’ preference for value added groundnut in Esan West Local Government Area of Edo State. The objectives were to determine the socio-economic characteristics of the respondents examine the determinants of consumers’ preference for value added groundnut and identify the different form of value addition in groundnut marketing. Multistage sampling technique was employed in data collection, a total of 76 respondents were selected. Descriptive statistics involving tables, frequency, percentage and mean were used for analysis of the data collected. The result indicates that that majority of the respondents were female (69.7%), between the age of 20–29 years old, had formal education (98.7%) with household size of less than5 members (48.7%). Fried and bottled groundnut (mean=3.28), fried and peeled groundnut (mean=2.92) and boiled groundnut (mean=2.83) were frequently consumed by the respondents. Important factors influence groundnut preferred were taste (mean=2.91), ability to store for long (mean=2.53), price (mean=2.30) and quality (mean=2.24). The major constraints associated with consumers’ preference for value added groundnut were found to be; inadequate capital, lack of storage facilities, and health issues. It was recommended that modern storage facilities be provided for groundnut marketers and groundnut should be fortified with vitamins to encourage increased patronage.

Forecasting oilseeds prices in India: Case of groundnut

Oilseed crops contribute 13 per cent of the country's gross cropped area and 10 per cent of the value of all agricultural produce. Groundnut is the major oilseed crop accounting about 30 per cent of the total oilseeds cropped area in the country with a production share of about 36 per cent. Prices of groundnuts are highly volatile, hence farmers need a reasonable forecasting of harvest period price to decide on the acreage under groundnut. Hence, the present study aimed to build a model to forecast the groundnut prices and applied to forecast kharif harvesting season prices in major producing states viz., Gujarat, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra. The prices were forecasted by using the time series data of monthly average prices for the period of 11 years (January 2006 to December 2016). ARIMAmodel introduced byBox and Jenkins (1970) which is the most widely used amongst time series models was used for predictions. R2, RMSE, MAPE, MAE and normalized BIC these parameters were used to test the reliability ofmodel. Model parameters were estimated by using the Statistical Packages for Social Sciences software. In India kharif season groundnut is harvested during the period of September to December. Forecast shows that market prices of groundnut, would be ruling in the range of ` 3,760 to 5,520 per quintal in kharif harvesting season (2017-18). Hence, using ARIMA model to forecast groundnut prices is very useful not only to farmers but in policy formulation and also in promoting efficiency of groundnut marketing. The farmers are advised to take marketing decision accordingly.

An Econometric Investigation on Groundnut Market Integration in India

This paper analyzes groundnut market integration in four regional markets located in Tamil Nadu, Karnataka, Andhra Pradesh and Gujarat of India using monthly wholesale prices of Groundnut. Unit root test indicated that the price series in each location are non-stationary at their levels, and stationary at their first differences. Co-integration results showed that the regional markets have price linkages, and thus are spatially integrated. Price transmission analysis revealed that bidirectional relationships exist within domestic markets which indicated the price transmission happening in short run adjustments and the presence of long run equilibrium existed among the groundnut markets in Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. In the case of Tamil Nadu Groundnut market, the speed of adjustment towards equilibrium was almost 0.34 per cent and Karnataka market was the key determinant of shocks in the groundnut market of Tamil Nadu.