ANALYSIS OF PROFITABILTY AND OPERATIONAL PERFORMANCE OF GROUNDNUT MARKETING IN ADAMAWA STATE, NIGERIA

Abstract

The study was conducted to analysis the Profitability and Operational Performance of Groundnut Marketing in Adamawa State, Nigeria. Multi stage sampling technique was used in selecting 201 groundnut marketers. Descriptive statistics, cost and return analysis, profitability and efficiency ratios were employed as tools for data analysis. Result from cost and return revealed an average total cost and total revenue of N114,200 and N120,000 respectively with an average profit of        N5,800 per 100kg bag. The value of profitability ratio was (0.051) and efficiency ratio showed a value of (1.051). High transportation cost ranked highest (62.67%) among the problems affecting the smooth running of the market and exploitations by firms was ranked as second problem of groundnut marketing. The study concluded that groundnut marketers are efficient in their marketing operations realizing significant profit. The study recommends that Governments should spend ample money to build and maintain roads that link rural markets to assembling markets, focusing on areas with the highest need. This would improve marketing margin and hence increase in market performance. Also, groundnut marketers should form cooperative societies to enable them access credit from micro finance and bank of agriculture to buy cooperative van for transportation at affordable cost and expand their scale of market.