ABSTRACT

The study was aimed at examining the profitability analysis of cashew production in anpka local government area of kogi state, Nigeria.  It involves the collection of primary data from a sample of 110 cashew farmers in the study area.  The analysis of data was done through a combination of descriptive statistics, gross margin analysis and profitability analysis, the result  showed majority of the farmers were male(68.18%), and most of them were married (70%) with most (50%) having an household size of 7-9. Most of the cashew farmers in the study area have formal education that can enable them to read and write with most (52.73%) having a farming experience of 11-15 which implies that most of the farmers are experience, the result also showed that fix cost accounted for 18.16% of the seasonal cashew production while variable cost  account for 81.84%.  The profitability analysis shows that cashew production in the area could generate a rate of return to capital and family labour  of 74% and a return on naira invested of 74kobo.  The study concluded that, even though cashew production is economically vaiable in the study area, the following problems have imposed a severe  limitation on the expansion of the enterprise.  These include poor road network, inadequate capital/found,  low prising due to seasonal glut  in the market, lack of improved planting materials among others.  To ameliorate these problems, the study therefore ,  recommended that efforts should be directed towards providing credit to current and potential cashew producers so as to boost production.  Furthermore,  establishment of fruit (cashew) processing industries in the state will cushion the problem of wastage and reduces forced sale of the product particularly during harvesting season.

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