Analysis of Groundnut Value Chain and Its Implications for Farmer Income in Bauchi State, North East Nigeria

Groundnut was historically the dominant export crop of northern Nigeria and remains an economically significant commodity in Bauchi State, contributing to household income and rural employment. Despite this importance, the structure of the groundnut value chain and its distributional implications for farmer income remain underexplored at the local level. This study analysed the groundnut value chain and its implications for farmer income in Bauchi State. A multistage sampling approach was used to select 94 groundnut producers, processors, and traders from three local government areas. Value chain mapping, marketing margin analysis, and functional analysis of chain actors were applied. Results revealed a five-actor value chain dominated by intermediary traders who captured approximately 40 percent of the final consumer price, while farmers received an average of only 48 percent. Processing and packaging activities were largely informal and added limited value relative to potential. Limited access to certified seed, inadequate storage infrastructure, and weak producer organisation constrained farmers' bargaining power. The study recommends establishing farmer cooperative platforms for collective groundnut marketing, investing in smallholder processing equipment, and creating market information services to improve price transparency. Strengthening the Bauchi State groundnut value chain requires coordinated investment in both production and market infrastructure. Keywords: groundnut, value chain, farmer income, Bauchi State, marketing margin.