ANALYSIS OF CASHEW NUTS MARKETING IN KWARA STATE, NIGERIA

This study analysed cashew nut marketing in Kwara State, Nigeria. Data were collected from the respondents with the aid of a structured questionnaire. The analytical tools employed were the herfindahl index, descriptive, gross margin and regression analyses. The study revealed that most of the wholesale marketers (81.1%) were male with mean age of 33.5 years. The study revealed a monthly gross margin of N1, 821, 922. The average rate of returns to total investment was 25.5% implying that an average profit of N0.25k could be realized on every naira invested in cashew nuts marketing in the study area. The Herfindah index was 0.007 and this revealed that cashew nut market tended towards pure competition. The coefficient of multiple determinations (R2) was 0.506%, implying that about 51% of the total variation in output was explained by the independent variables. Moreover, the purchase cost (X1), transport cost (X3), agent cost (X4) and storage cost (X5) were indicated as the important variables determining the returns of cashew nut marketing. The marketing of cashew nuts is mostly affected by price instability due to the seasonal nature of cashew nut production, poor storage and processing facilities. Consequently, a controllable pricing system for efficient and effective marketing is recommended. Marketers are to ensure good quality nuts as well as observe good hygiene practices in drying, sorting and packaging of cashew nut to enhance their profitability. More researches into the production of high yielding varieties of cashew nuts and policies that lower the costs of marketing should be vigorously pursued