Efficiency measurement of cashew nut marketing in Enugu State, Nigeria

Abstract

The study examined the profit function and structural performance of cashew nut marketing in Enugu State, Nigeria. Six markets were selected from three Local Government Areas where there is high production and sale of cashew nuts in the State. Data were collected from 120 cashew nut sellers, randomly selected from the six markets. Analytical tools employed were the multiple regression analysis to measure the profit function of cashew nut marketing inputs, Marketing margin, Lorenz curve, and Gini coefficient to measure the structural performance. The study revealed a high gross margin of 36.79% of sales receipt or 58.19% of total variable cost (TVC). This implies that cashew nut marketing was profitable in the area. The marketing margin was also high being 37.50% of sales receipt or 59.32% of TVC. The profit function measurement showed that cashew nut marketing was in a stage of inefficient allocation and utilization of resources. Therefore, cashew nut marketing in the study area though profitable was grossly inefficient from the viewpoint of market structure and profit function measurement. Policy measures that will improve credit advancement to small-scale/micro business concerns and reduce transportation cost are advocated.

Agro-Science Vol. 4 (1) 2005: pp. 46-49