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Profitability of Cashew Nut Processing and Marketing in Enugu State, Nigeria

D. C. Nmeregini
I. A. Ubokudom
J. Chukwu
R. C. Onyekwelu
O. E. Eze


The study assessed the profitability of cashew nut processing and marketing in Enugu State, Nigeria. Specifically, the study described the socio-economic characteristics of the cashew nut processors, examined the channels in which cashew nut is marketed, estimated the cost and returns of cashew nut processing and marketing, and assessed the factors affecting the profitability of cashew marketing. A multi-stage sampling procedure was employed in selecting 126 respondents out of which 95 questionnaires were returned and used for the study. Primary data used were collected using structured questionnaires and analyzed using descriptive statistics such as frequency, percentage, and means; gross margin analysis and multiple regression analysis. The study showed that the major marketing channel of cashew nut marketing was the use of sale agents (70.5%) and retailers to consumers (65.3%). The cost and return analysis of cashew nut processing and marketing revealed the net return to investment as 0.20, 0.37, 0.34 and 0.29 for processors to wholesalers, wholesalers to retailers, retailers to consumers, and use of sale agents respectively, indicating that out of every Naira (N) spent on cashew processing and marketing, 20, 37, 34 and 29 Kobo accrued as the net profit respectively, thus indicating that cashew processing and marketing is profitable in the study area. The study showed that age, years of experience, amount processed and amount sold were significant factors affecting the profitability of cashew nut processing and marketing all at a 5% probability level. The study recommended that Government should invest in cashew nut production through the establishment of more cashew tree plantations and planting of improved cashew seedlings; and enlighten cashew processors on the more profitable marketing channels.