Effect of post-harvest Aflatoxin contamination reducing activities on groundnut marketing in Northern Region of Ghan

Thumbnail Image
April, 2016
Journal Title
Journal ISSN
Volume Title
The main objective of this study was to examine the cost of aflatoxin reducing activities on net revenue in groundnut production and marketing in the Northern Region of Ghana. A total of 165 respondents comprising 75 producers, 60 retailers and 30 wholesalers were selected through a multi-stage sampling approach in Tamale Metropolis, Savelugu Nanton and Tolon-Kumbugu Districts for the study. Data for 2012 crop year and trading information from wholesalers and retailers as well as their level of awareness regarding aflatoxin contamination in groundnuts were examined using descriptive statistics. Enterprise budget was used to examine the costs involved in producing quality groundnuts which in effect reduces aflatoxin contamination. A multiple regression model in the log-linear functional form was employed to examine the relationship between the cost of drying, sorting and storage on one hand and net revenue on the other hand. The study revealed that producers’ awareness of aflatoxin contamination and the health effect in animals and humans was higher than the awareness of the traders. Aflatoxin awareness level among retailers was found to depend on educational level and years of experience. From the study groundnut production and marketing are profitable in the Northern region. Although sorting was generally found to reduce the net revenue of producers and traders, the net revenue of retailers in Tamale was higher for sorting their groundnuts than for their counterparts in the other two districts. Results from the regression analysis showed that, the costs of sorting had a significant negative effect on the net revenue obtained by producers. Drying and sorting costs had a negative influence on the net revenue obtained by producers and retailers. However, storage cost had a positive relationship with net revenue received by producers and retailers whiles it had a negative influence on wholesalers net revenue. The study recommends awareness creation especially on the health and economic effects of aflatoxin contamination through public education. Such education and sensitization should also focus on proper pre and post-harvest activities which can reduce contamination and lead to the supply of quality groundnuts. There should also be conscious effort by market actors to segment the groundnut market to allow for premium price to compensate actors for the extra cost incurred in embarking on aflatoxin reducing activities.
A thesis submitted to the Department of Agriculture Economics, Agribusiness and Extension Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Philosophy in Agricultural Economics,