ECONOMIC ANALYSIS OF GROUNDNUT PRODUCTION IN DAMBATTA LOCAL GOVERNMENT AREA OF KANO STATE
ECONOMIC ANALYSIS OF GROUNDNUT PRODUCTION IN DAMBATTA LOCAL GOVERNMENT AREA OF KANO STATE
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Date
1999-03
Authors
YARO, MUHAMMED, ABDU
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Abstract
ABSTRACT
This study was designed to assess the resource use efficiency and the profitability
of groundnut production in Danbatta Local Government Area of Kano State. The
specific objectives were to;
(i) determine socio-economic characteristics of the groundnut farmers in the study
area
(ii) determine the input-output levels and the resource use efficiency in groundnut
production in the study area,
(iii) determine the costs and returns in groundnut production in the area,
(iv) identify the major constraints to increased groundnut production in the study
area.
To achieve the objectives, data were collected from 100 groundnut growers in
the study area during the 1997 cropping season. The analytical framework chosen for
the study were descriptive statistics, net farm income and the regression analysis.
The results showed that the farmers were making profit of N0.84 (not costing
family labour) and N0.47 (costing family labour) on every Naira invested by the
farmers respectively. Multiple regression analysis results showed that the inputs
identified in groundnut production were significant at 5% level of significance in
explaining 73.23% of the variation in the output. However the marginal value
productivities (MVPs) of the inputs derived from the cobb-Douglas production function
were more than enough to offset their costs, implying that the farmers were
v i i i
underutilizing such inputs like fertilizer, and labour and hence, it was necessary for them
to employ more of such inputs in their production process for better returns.
Labour was identified to be the most costly input in groundnut production
among the farmers accounting for 47.20% of the total cost of production. However,
53.37% of this was unpaid family labour which constituted non-direct expense to the
farmers. Most farmers (81.0%) were constrained by acute scarcity and costliness of
input such as fertilizer.
The study recommended that government should monitor the pricing and
quality of fertilizers to be supplied by the private enterpreneurs since the subsidy has
been removed,. Extension activities should enlighten farmers on how to use available
resources effecientiy. In the study area, government shou!d release some of the large
expanse of land acquired for irrigation but left unused to the farmers at reasonable
charges.
Description
DEPARTMENT OF AGRIC. ECONOMICS & RURAL SOCIOLOGY,
AHMADU BELLO UNIVERSITY, ZARIA, NIGERIA.
Keywords
ECONOMIC,, ANALYSIS,, GROUNDNUT,, PRODUCTION,, DAMBATTA,, LOCAL,, GOVERNMENT,, KANO,, STATE.