Assessment of Cashew Value Chain in Katsina – Ala Local Government Area of Benue State, Nigeria

ABSTRACT The study analyzed the Cashew Value Chain in Katsina - Ala Local Government Area of Benue State, Nigeria. A total of 81 respondents were selected. Primary data were collected with the use of structured questionnaire. Both descriptive and inferential statistics were employed for the study. The results of the socio-economic characteristics of Cashew value chain actors revealed that majority of the Cashew farmers (52.5%), Cashew processors (56.3%) and Cashew marketers (64%) were within the age bracket of 31- 40 years, majority of the farmers (62.5%), processors (56%), and marketers (52%) were males, majority of the farmers (77.5%), processors (75%) and marketers (76%) were married, majority of the Cashew farmers (52.5%) had household size of 6-10 persons, processors (50%) had household size of 6 - 10 persons, and marketers (56%) had 1- 5 household members, majority of the Cashew farmers (60%) had a farming experience of more than 10 years, Cashew processors (50%) had a processing experience of more than 10 years and Cashew marketers (60%) had a Cashew marketing experience of 6 - 10 years, majority of the farmers (87.5%), processors (87.5%) and marketers (92%) had formal education, majority of the farmers (75%) had a monthly farm income range from N1,000 to 50,000, processors (63%) had a monthly income range from N51,000 to N100,000, and the marketers (64%) had a monthly income range from N1,000 to 50,000, majority of the Cashew farmers (57.5), Cashew processors (62.5%) Cashew marketers (52%) were members of cooperative groups. The results of the volume of cashew products along the value chain in the study area showed that majority (75%) of the respondents had an output of not more than 1000 kg. The result of the cost and returns of Cashew farmers showed that Cashew production had a net return of N19,650 per 80Kg of output. The result of the analysis of the average costs and returns of Cashew processing per kilogram showed that the Cashew processors had a net return of N37, 900 per 80 kilogram of processed Cashew nut. The result showed that the marketers had a net return of N46,600 per 80Kg of Cashew traded. This shows that Cashew marketing is more profitable than just the production in the study area. The result of the factors constraining Cashew value chain in the area revealed that the Cashew farmers identified low productivity (9.3%), inadequate post-harvest knowledge and handling (9.1%), pests and diseases (8.8%), variability in prices of cashew (8.6%), poor access to production credit (8.4%), poor access to markets (8.1%), poor market information (8.1%) as the most constraints to cashew production in the study area, the Cashew processors identified high cost of transportation (13.2%), lack of institutional support (13.2%) as the most constraints to Cashew processing in the study area, and the most constraints to Cashew marketing in the area are variability in price (13.7%), poor access to credit, (13.7%) and High cost of transportation (13.7%). It was concluded that the Cashew value chain would be more profitable if the constraints are addressed. Therefore, based on the findings of the study, the following recommendations were made: The government should assist Cashew processors with credit facilities to procure modern processing equipment, and consider subsidizing cashew processing equipment and machinery. The government should design a programme that will encourage more people to engage in Cashew farming and value-addition activities. The Government should ensure that Cashew marketers have adequate market facilities such as motorable roads, to enhance Cashew value addition and marketing. There is the need for Public-Private Partnership (PPP) in cashew nut processing.