Analysis of the Groundnut Value Chain in Ghana

Ellen Owusu-Adjei^1, , Richard Baah-Mintah¹ and Baba Salifu¹

¹Faculty of Agriculture and Social Sciences, Anglican University College of Technology, Nkoranza Campus, Ghana

Cite this paper:
Ellen Owusu-Adjei, Richard Baah-Mintah and Baba Salifu. Analysis of the Groundnut Value Chain in Ghana. World Journal of Agricultural Research. 2017; 5(3):177-188. doi: 10.12691/wjar-5-3-8

Abstract

Performance of the groundnut value chain in Ghana was analysed by collecting primary data through the use of semi-structured questionnaire. The data was collected from 300 farmers in the Northern, Upper East and Upper West regions coupled by eighty 80 distributors, 60 processors and 100 consumers respectively in the Brong-Ahafo and Greater Accra Regions. Findings revealed that primary producer (farmer), distributor, processor and retailer of processed output (oil/paste) are the key actors in the value chain process. Estimates of costs and returns indicate that, for every litre of groundnut oil and kilogramme of paste produced along the oil and paste chain respectively, the farmer benefits most when he/she sells groundnut in the shelled form. This is followed by the distributor, the retailer of processed output and finally the processor. On the other hand, when the farmer sells groundnut in the unshelled form, the distributor benefits most from oil and paste chain with 116% increase in profit. Further estimates of return on investment per day indicate that, the distributor benefits most along the groundnut value chain. Assessment of power relations through the use of a scoring exercise revealed distributors as the dominant governors along the chain. It is recommended that groundnut producers should add value by shelling groundnuts before selling in other to increase profit accruing to them in the chain. Existing farmer and processor groups should be empowered and individual farmers and processors should be organised into groups as it is being practiced by most traders in the chain. This will enhance their share of power along the chain.

Keywords:
groundnut value chain process of value chain and Ghana

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