Profitability Analysis of Groundnuts Processing in Maiduguri Metropolitan Council of Borno State, Nigeria

Abstract

This paper examines the profitability of groundnuts processing in  Maiduguri Metropolitan Council of Borno State. The specific objectives of the study were to examine the socioeconomic characteristics of groundnut processors, estimate the costs and returns in groundnut processing and determine the return on investment in groundnut processing in the study area. Structured questionnaires were administered to the sixty respondents and the data were analyzed by the use of descriptive statistics, gross margin and return on investment analysis. The results indicated that majority (90%) of the respondents were married while 30% were in the age group 31-40 years. About 40% of the respondents’ had informal  education. Profitability analysis showed that groundnut processing was profitable business with gross margin of N43.34 per kg. The return on investment was estimated as 40%. It was recommended that large scale groundnut production should be encouraged by government through provision of farm inputs to farmers at very subsidized rate.

Key words: Profitability, groundnut, processing, Maiduguri, Borno state.