Analysis of Groundnut Value Chain in Hong Local Government Area of Adamawa State in North Eastern Nigeria

The study analyzed the value chain of groundnut in Hong Local Government Area of Adamawa State in North Eastern Nigeria. It described the socioeconomic characteristics of value chain actors, determined the cost and returns along the groundnut value chain and identifies the constraints faced by the actors along the groundnut value chain. Multi-stage sampling technique was used to sample 144 respondents which served as sample size and the data obtained were analyzed using gross margin and descriptive statistics. The results of the socio-economic characteristics shows majority (83%) of the actors involved their falls between 21-40 years were at active age, 70.14% were female, 58.33% were married , most (97.23%) attended one form of formal education or the other and their major sources of capital to actors obtained capital from personal savings (73.61%). The average gross margin of the actors shows that processor of cake, processor of roasted groundnut, producers of groundnut and marketers of groundnut earned ₦17,720.00, ₦8,893.00, N 12,900.00 and ₦6,450 per 100kg of shelled groundnut respectively. It was also found that inadequate capital. pest and disease and poor verities of groundnut were the major constraints limiting groundnut production in the study area. It was concluded that value chain of groundnut is profitable though the actors faces some challenges. The study therefore, recommend both government and non-governmental organizations should provide soft loan to the actors to enable them to expand their ventures, to boost up activities along the groundnut value in the study area there is need to provide them with modern processing technologies so as to add more value to the products along the chain. There is need to gear in providing subsidizing input prices to the actors by governmental and non-governmental organization.