This document summarizes a study on the financial performance of cashew nut marketing in Oke-Ogung Area of Oyo State, Nigeria. It finds that most cashew nut marketers are male, married, and have 6-10 years of experience. The main sources of finance are personal savings and cooperative loans. Most marketers sell to wholesalers. Constraints include unstable prices, lack of access to loans, and poor pricing information. The study's cost-benefit analysis finds a 30.5% rate of return on investment. However, sales and profits declined between 2018 and 2019, indicating weak financial performance. It recommends improving quality, processing, and cooperation between marketers to enhance profits and the cashew industry.

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FINANCIAL PERFORMANCE IN
THE MARKETING OF CASHEW
NUTS IN OKE-OGUN AREA OF
OYO STATE, NIGERIA
by
Salau, Muslim Adebayo, 2Yaqoob,
Abdulmajid and 3Salawu, Mutiat B.

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Introduction
Cashew (Anacardium occidentale L.) is a cash crop in
the tropics, … (ACA, 2012.;Oluyinka, 2012).
It was reported that Africa contributed over 45% of an
estimated 4,152,215MT of the World Cashew
Production in 2012 and report showed that Nigeria
ranked second in the 2011 and 2012 with estimated
nut production of 813,023 and 836,500MT. (FAOSTAT,
2013., Aliyu, 2011 and Ogunsina and Lucas, 2003).

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Table1: Cashew yield statistics in the world (FAOSTAT, 2013)
Countries Production (Tones)
World 4,152,315
Vietnam 1,190,900*
Indian 680,000
Brazil 80,630
Nigeria 836,500*
Cote devoire 450,000
Tanzania 122, 274
Senegal 6650
Benin 170,000
Mozambique 64,731
Indonesia 117,400

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• In Nigeria cashew nut trading and exports about USD160
million (24 billion naira) and over a million people
depend on the industry (Adeigbe et al, 2015).
• Current national Production of Cashew nuts is
estimated at 836,500MT on 366,000ha with an
average yield of 2,286kg/ha. Just about 5% of the
produced nuts were processed in Nigeria (Adeigbe
et al, 2015).
• Table 2: Cashew production (tons) in some Africa
countries (FAOSTAT, 2013)

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Country/year 2012 2011 2010 2009
Benin 170,000 70,000 69,700 49,487
B/Faso 5750 5876 4800 3168
Cote divore 450,000 452656 380,000 246383
Ghana 36,500 35736 28400 35647
G-Bisau 130,000 128,684 91,100 64,653
Kenya 29,026 20,927 8600 8381
Mozambique 64,731 72,263 67,200 67,846
Nigeria 836,500 813,023 650,000 580761
Senegal 6650 6996 5700 4031
Tanzania 122,274 75,000 80,000 79100

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• Financial performance in Cashew nut marketing is
the process of recognizing the financial strengths
and … (Pavithra et al, 2017)
• The goal of such analysis is to determine efficiency
and performance of marketers management, as
reflected in the financial records and reports
• It could be measured by Comparative income,
multiple regression, profit ratio and trend analysis
(Pavithra et al, 2017 and Amalendu, et al, 2011).

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Justification of the Study
• Cashew nut marketer had been experiencing
increase production of cashew nuts but eventually
get little for sale… (Oroch, 2005, and Topper,
2008).
• It was reported that Nigeria cashew nut sell at a
halve price in the world market rate due to the
factor reasons which include…(Adeigbe et al,
2015, and Salau et al, 2017).
• This study identifies paucity of research in the
area of financial performance in the cashew…

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Objectives of the study
• Examine the Socio-economics characteristics of
the respondents in the study area.
• Assess the Source of finance among Cashew nut
marketers in the study area.
• Determine the rate of return to investment in
cashew nuts marketing.
• Examine the financial performance in Cashew nut
marketing in the study area.

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Research Methodology
• Study Area
The study was carried out in Oke-Ogun Area of Oyo
state with inhabitant projected population of 2,
798, 400 (NPC, 2010).
• Sampling procedure: A Multistage sampling
procedure was used…
• Analytical Techniques: Simple frequency table,
percentages, Cost benefit analysis and regression
analysis were used to analyze the data collected
from the field.

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Results and Discussion
Table 1: Socio Economic characteristics of the respondents
Variable Frequency Percentage (%)
Age (Years)
16-25 25 11
26-35 102 45.3
36-45 71 31.4
46-55 27 12.3
Gender
Male 185 82
Female 40 18
Marital Status
Single 10 4.4
Married 187 83.1
Widow 20 8.9
Divorced 08 3.6

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House Hold size
1-5 15 6.6
6-10 150 66.7
>10 60 26.7
Year of Experience
1-5years 150 66.7
5-10years 60 26.7
>10 years 15 6.6
Marketers’ category (Tons)
10 – 50 (Small) 113 50.2
51 – 100 (Medium) 65 29
>100 (large) 106 47
Source: Field survey, 2018

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Table 2: Respondents sources of Finance
Variable Frequency Percentage(%)
Family 20 8.9
Personalsavings 85 37.8
Bank 05 2.2
Cooperative(Noninterest) 115 51.1
Total 225 100
Source:FieldSurvey,2018.

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Table 3: Respondents Market distribution
Variable Frequency Percentage(%)
Wholesaler 178 79.1
Processor 0 0
Exporter 47 20.9
Total 225 100
Source:FieldSurvey,2018

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Table 4: Respondents Constraints in cashew Nut marketing
Variable Yes No
Unstableprice 220(97.8) 05(2.2)
Transportation 27(2.4) 197(87.6)
Accesstoloan 215(95.6) 30(4.4)
Poorpricinginformation 200(88.9) 25(11.1)
Source: Fieldsurvey2019.()Figureinparenthesisindicatespercentagecount

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Table 8: Cost benefit analyses of cashew nut Marketing
Activities Cost (N) Return (N)
Gross Return (GR) 9,000,100
Less variable cost:
Cashew nut bought 6,1741,024
Transportation fare 250,154
Storage Rent 20,000
Labour 50,000 6,494,178
Gross margin (GR-TVE) 2,505,922
Fixed cost
Sack 180,180
Jute bags 340,800
Warehouse expenses 11,000
Cost of Scales
Total fixed cost
130,000
661,980
Net return
Source: Authors
computation.
1,843,942

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Rate of return on Investment (ROI) = (GR-TVE) / TVEx X 100/1 = 30.50%

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Table 7: Comparative income statement 2018 to 2019
Activities 2018 2019 Difference % Change
Sales/tones 400,000 200,000 200,000 50%
Cost of Goods
Sold/tones 290,000 122,000 108,000 37.2%
Gross profit 110,000 18,000 92,000 83.6%
Gross profit
Ratio 27.5 9
Source: Authors Computation.

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Conclusion and Recommendations
• Conclusion: From the study it can be concluded that; the
RROI is 30.50% , sales reduced by 50% and the G. profit ratio
is 9.0 were all indicators that the Financial status is weak
and lead t poor financial performance.
• Recommendations
Its hereby recommended that;
• The Cashew nuts marketers should pool resources together
to provide Association centers to ensure good quality nuts
by proper drying, sorting, packaging.
• As well as acquiring processing facilities for cashew nuts to
enhance their profitability, improve the performance of
their invested capital and secure the nation economy.

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References
Adeigbe, O. O, Olasupo F. O. Adewale, B. D and Mayowa, A. A. (2015): A renew on cashew
Research and production in Nigeria in the last four decades. Academic journals. 10(5):
196 - 209.
Amalendu B, Sri S. M. Sri G. R. (2011): Financial Performance Analyis- a Case Study of
Pharmaceutical Industry in India. Current Research Journal of Social Sciences. 3(3):
269-275. ISSN: 2041 – 3246.
Pavithra, J., Thooyamani K. P. and Kermiki D. (2017): A Study of Analysis of Financial
Performance with reference to Jeppiaar Cement PVT LTD. International Journal of Pure
and Applied Mathematics. 16(14) : 189 – 194. ISSN: 1314-3395.
Salau, S. A., Popoola, G.O. and Nofiu, B. N. (2017): Analysis of Cashew Nuts Marketing in
Kwara State, Nigeria. FUOYE Journal of Agriculture and Human Ecology. 1(1):34.

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