Economics of small-scale cashew nut marketing enterprise: the case of Ejigbo local government area, Osun state, Nigeria

Nigeria, a major African producer of cashew nuts, is leveraging its marketing activities to generate non-farm income, thereby enhancing the living standards of the rural population. The study undertakes the economic analysis of cashew nut marketing activities in the Ejigbo local Government area, Osun State. Two-stage sampling procedure; simple random and proportional techniques were employed in selecting one hundred and twenty (120) cashew nuts marketers as sample for the study. Primary data for the study were obtained through field surveys using a structured interview schedule. Data were analysed with both descriptive and inferential statistics. Results of the descriptive analysis show that most of those cashew nuts marketers were young, economically active married males with low formal education but vast experience in cashew nuts marketing activities. Most were members of cooperative societies and marketing associations and sourcing their cashew nuts through middlemen. The average annual total market revenue (TMR), total fixed marketing costs (TFMC), total variable marketing costs (TVMC), total marketing cost (TMC), net market margin (NMM), and gross market margin (GMM) per cashew nuts marketing enterprise were ₦4,715,768.30, ₦1,196.25, ₦4, 436, 426.39, ₦4, 437, 622.64, ₦278, 145.66, and ₦279, 341.91 respectively. The cost of cashew nuts accounted for approximately 99.97% of the TVMC. Regression results reveal that the cost of purchase of cashew nuts and market levies influenced NMM positively, while the cost of labour and TFMC impacted NMM negatively. The study concluded that the cashew nut marketing enterprise is profitable, with good returns on investment in the study area. Keywords: Cashew nuts, budgetary analysis, Market margin, Ejigbo, Osun State