Profit Efficiency in Groundnut Oil Processing among Women within Zuru Emirate of Kebbi State, Nigeria
Author : Ishaya R, Yushau H, Ngaski AA and Gona A
Abstract :
This study analyzed the profit efficiency of women groundnut oil processing in Zuru Emirate of Kebbi State, Nigeria, focusing on socio-economic characteristics, stochastic frontier profit efficiency, determinants of inefficiency, and constraints affecting processors. Primary data were collected from 153 women processors using a multi-stage sampling technique across four Local Government Areas: Zuru, Danko-Wasagu, Sakaba, and Fakai. Data were analyzed using descriptive statistics, Net Farm Income (NFI), and the Cobb–Douglas Stochastic Frontier Profit Function. The socio-economic results revealed that 82.3% of the processors were within the economically active age group of 21–50 years, while 62.1% were married. About 35% had 6–10 years of processing experience, and 49% had household sizes of 1–5 members, suggesting availability of family labour for processing activities. The cost and return analysis showed that variable costs accounted for 88.10%, 87.93%, and 87.05% of total cost during the peak, lean, and off seasons respectively. Groundnut seed constituted the largest proportion of production cost, representing 65.20%, 66.92%, and 69.15% across the three seasons. Net Farm Income was ₦7,099.50 during peak season, ₦5,537.92 during lean season, and ₦5,258.82 during off-season, indicating higher profitability during the peak season. The stochastic frontier results indicated that groundnut seed price was positive and highly significant (p < 0.01) with coefficients of 0.549, 0.685, and 0.631 across seasons, while labour cost also significantly influenced profit efficiency (0.211, 0.124, and 0.135). Cooperative membership (0.876; 9.645; 7.460) and credit access (0.002) significantly influenced inefficiency. Major constraints included difficulty accessing credit (83.2%), high seed cost (70%), input/output price fluctuation (60%), high machine cost (50%), high transportation cost (50%), and poor electricity supply (46%). The study concludes that improving credit access, processing technology, and rural infrastructure will enhance profit efficiency and livelihoods of women processors.
Keywords :
Efficiency, Groundnut, Profitability, Processing, Oil, Women and Zuru.
