Developing a Value Chain Upgrading Strategy for Groundnut in Kano State

Groundnut was once Nigeria's leading agricultural export, and while its commercial importance in Kano State remains significant, value chain inefficiencies from production through processing to marketing limit the returns to smallholder producers. This study developed a value chain upgrading strategy for groundnut in Kano State, North West Nigeria. A value chain analysis methodology was employed, mapping all actors from input supply through farm production, processing, wholesale, retail, and export. Semi-structured interviews were conducted with 60 farmers, 20 processors, 15 traders, and 10 market intermediaries in Kano Municipal, Doguwa, and Tofa LGAs. The analysis identified four critical value chain constraints: low farm productivity (mean yield 1.1 t ha-1 versus achievable 2.4 t ha-1 with improved management), high aflatoxin contamination rates limiting premium market access, fragmented processing sector lacking quality-assured oil extraction facilities, and inadequate cold chain infrastructure for confectionery grade groundnut. The upgrading strategy specifies good agricultural practice packages for productivity improvement, aflatoxin reduction protocols using PICS storage bags and biocontrol agents, processing cluster development with quality certification, and export market linkage development through NEPC groundnut desk. Cost-benefit analysis shows upgrading investments recoverable within 4 years at current groundnut prices. Expert review by eight value chain and agribusiness specialists confirmed the strategy's feasibility. The study recommends adoption by the Kano State Ministry of Agriculture in partnership with the Gates Foundation-funded GCAP groundnut initiative.

Keywords: groundnut value chain, Kano State, aflatoxin, value chain upgrading, agribusiness