Volume : 10, Issue : 11, NOV 2024

ANALYSIS OF VALUE ADDITION AMONG CASHEW NUTS PRODUCERS IN OYO STATE, NIGERIA

ADELEKE, A. O., OKUNOLA, S. O., OLARINDE, L. O., BINUOMOTE, S. O.

Abstract

Presently in Nigeria, products of the cashew tree (kernel and apple) are under-utilized for income generation. This study therefore analyzes value addition among cashew nuts producers in Oyo State, Nigeria. Multistage sampling technique was used to select 229 cashew farmers. A Double-Log Regression Model and One-Way Analysis of Variance (ANOVA) were used to analyses the data. The study revealed that in 2019 production season, the result showed that the coefficient of gender, farm size, and years of experience to be positive and statistically significant while credit access of the producers show negative coefficient and significant at 5% level of confidence. The coefficient of gender was significant at 1% level of confidence, this indicated that there will be increased cashew nut value addition among the producers with more male cashew producers. Also, the coefficient of farm size was significant at 1%, an indication that an increasing farm size will increase cashew value addition among the producers in the study area, ceteri paribus. Additionally, the result for the year 2020 showed improvement over the previous year. About 9 variables were significant in this year with various levels of significance. The coefficient of sex, farm size and years of experience were all positive and significant at 1% level of significance. Both age and educational status of the producers also influence value addition of the producers in the same year. The coefficients of these variables were significant at 5% level. Also, the coefficient of cost of labour was negative but significant at 10% level and both market outlet and processing facilities were positive and also significant at 10% level. The positive coefficient of other variables signifies that increase in these variables will lead to increase in value addition of cashew nut producer. The result in the year 2021 revealed that increase in age of the respondents will lead to decrease in value addition of cashew nut producers in the study area. The result stands due to the fact that the respondents were becoming aged and this accounted for less agility and productivity. Conversely, the coefficient of farm size showed positive relationship with value addition in the study area. Additionally, the result showed that both contract farming and storage facility increases value addition in the study area. The result as presented here showed that a unit increase in contract farmers enhances value addition of cashew producers by 0.3438 in 2021. It was concluded that in 2019, cashew nut producers will have increase output as much as they are educated. With increase in cost of labour in the year 2020 production season, most cashew nut producer have over utilized labour and additional cost on labour will negatively affect their expected value addition. The more the cashew nut contract farmers in the study area the more the value addition in 2021. Therefore, cashew producers should be educated. They should also optimize the cost of labour. More contract farmers should be involved in cashew production.

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