Nigeria Agricultural Journal

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Empirical estimates of determinants of net-returns among cashew nut marketers in Umuahia Agricultural Zone of Abia State Nigeria

E.I. Offor, B.O. Okpara, R.C. Umeh


The study analysed the cost and returns of cashew nut marketing in Umuahia North and South local Government Area of Abia State Nigeria. Specifically, the study examined the marketing margin, net return, determinants of net returns and constraints that militated against the business. Data were collected through the use of questionnaire. A purposive sampling of five (5) markets was made based on the level of marketing activities of cashew nut sold in these markets. Fifteen (15) cashew nut marketers were randomly selected from each of the markets and a total of seventy- five (75) cashew nut marketers were selected for the study. Data collected were analysed using percentages, marketing margin, cost and return and regression model. Result shows that the business was profitable. Among the determinants of net return were marketing experience, quantity of cashew nut sold and level of education. The major constraints identified by the marketers were, inadequate credit supply, instability of prices and others. The study recommends that marketers should form cooperatives which could increase their access to credit from financial institutions. Marketers should also be encouraged to acquire more education to enable them access and process information on marketing innovations.

Keywords: Economics, cashew nut, marketing, cost and returns

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