Title Page





Table of Content


1.0 Introduction

1.1 Background of the Study

1.2 Statement of the Problem

1.3 Objective of the Study

1.4 Justification


2.0 Literature Review

2.1 Important of groundnut


3.0 Research and Methodology

3.1 Study Area

3.2 Sampling Technique

3.3 Data Collection

3.4 Method of Data Analysis

3.4.1 Linear Regression Analysis

3.4.2 Analysis Techniques

3.4.3 Descriptive Statistic

3.4.4 Gross Margin Analysis


4.0 Result and Discussion

4.1 Socio Economic Characteristic

4.2 Cos and Return Analysis

4.3 Cost of Kbour

4.4 Cost of fuel

4.5 Problem of Production

4.6 Profitable



5.0 Conclusion 

5.1 Recommendation 



Gross Margin

Gross Income



1.1 Background of the Study

Groundnut on peanut commonly called the poor man’s nut is an important oil seed and food crop for millions of people in the semi and tropic. It generate employment on the farm during cultivation and in agro – processing (CGIAR, 2005) it is the 13th most important food crop of the world and the most important source of edible oil, it’s seed contain high quality edible oil (50%) easily digestible protein (25%) and carbohydrate (20%) (FAO, 2007).

As soon it is an essential food product and enjoys good patronage in both domestic and international market as a veritable source of edible oil animal feed and also consumed as snacks (Nnamdi, 2010).

Groundnut is grown mostly by small holder farmer and almost 70% of the crop is grown in central Malawi. However, many farmers including estate farmer are realizing the importance of groundnut, especially with the unfavorable tobacco. Market, the introduction of suouneyn yielding groundnut varieties as CG7 coupled with the effort of various non-government organizations (NGOs) and research and development organization seed production and delivery have played an important role in promoting groundnut production in the country (F.A.O 2000).

Groundnut is one of the most popular commercial crops Nigeria which accounted for 70% of the total Nigeria effort earning between 1956 and 1967 but declined between 1995 and mid 1980, due to combine effect of fraught and disease (faru etal 2008).

According to (Adebayo etal 2008) over 330 product of groundnut commercially produced from groundnut and can be directly created from massive groundnut production with small improvement in the technology and the use of impaired variety with corresponding increase of cultivated hecterief.

Nigeria is the fourth largest producer of groundnut with proportion of 4.54% of the total world production (Trade Invest Nigeria 2010 USDA 2008/2009). In West Africa Nigeria produce 4140 of the total groundnut production (Echekwu and Emeka, 2005);

Groundnut had primarily n effort of agricultural commodities is source of both internal and foreign exchange before the oil coomera (Adeayo et al 2008). Before the word want, Nigeria groundnut figured prominently in world and a country for 29% of Africa export and 60% of the world export. In the 1950z Nigeria contributed 50% of the African export and 36% of the world export Nigeria produce 46% of the total groundnut production in West African (F.A 2002).

Groundnut is an important legume crop in the small holder agricultural income until late 1980s groundnut was fourth most important export crop product after tobacco. Sugar and tea (Bcbu et al 2000). The htulon area rich protect feed for livestock. The crop is a valuable component in maize (Zea mag) base cropping system and improve soil fertility (chiyembekeza et al 1999).


Nigeria has substantial economic potential in its agriculture, section; however despite the importance of agriculture in term of employment creation, its potential for contributing to economic growth is far from being fully exploited. It has been observed that these sector’s important has fluctuated with the rise and fall in oil level over the past ten year, the Nigerian agriculture sector has remained stagnant while the contribution of the manufacturing sector to the GDP had decline over the same period. Inappropriate macro-economic and sector, policies perpetuated by the 15years of military rule and mismanagement have had a negative impact not only on agriculture, but also on the entire economy consequently, per capital income have decline from approximately 25% in the 1955 to about 1980 (Nnamdi 2010).

However, as a result of the considerable magnitude of poverty in the country particularly in the rural areas, this has raised expectation for quick improvement is the live hoods of general populace. Data from the federal office for statistics (F.O.A 2000) indicate that poverty level in the country have been on the increase since 1986. (       )


The main objective of this study is to determine the economic analysis of groundnut production in Oyo state while the specific objectives are;

⦁ To determine the socio economic characteristic of respondent

⦁ To determine the cost and return of groundnut production.

⦁ To determine the problem of groundnut production.


The available of raw material at low price; hence the head for more efficient cultivation technologies.

The introduction of new processing technologies and more productive cultivation method need to be synchronized and there is an urgent need for a collaborative approach involving farmer. Processor developing community and policy maker, development agencies should focus effort at these location and in those communities where the private section is prepared to made significant investment (Mary et al 2000).



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