VALUE ADDED PROCESSING OPPORTUNITIES AND PROFIT FUNCTION OF GROUNDNUT FARMERS IN MYINMU TOWNSHIP, SAGAING REGION SAN

This study attempted to analyze value added processing opportunities and profit function of groundnut farmers. A total of 150 sample groundnut farmers from three villages were selected by using purposive random sampling method in Myinmu Township, Sagaing Region. The objectives are to explore the opportunities on value added processing of groundnut products, to analyze the marketing margin for each groundnut product of sample farmers and to identify the determinant factors on profitability of groundnut selling types of farmers. Descriptive, cost and return, marketing margin and regression analyses were used. According to the cost and return analysis, in winter season, the highest benefit cost ratio (BCR) was observed in selling seed (1.64) and the lowest in selling pods (0.96). In rainy season, the largest BCR and the smallest BCR were 2.30 and 1.24 of selling seed and pod respectively. In marketing margin analysis, selling seed was the highest profit share (87.16%) followed by high purified grain (39.19%), edible oil and oilcake (36.44%), low purified grain (29.26%) and pod (8.26%). Moreover, the profit per cost price of seed was the higher profit share than the other types of groundnut product. In the regression results, the groundnut profit was positively and significantly influenced by groundnut yield, while family labor cost, hired labor cost and total material cost were negatively and significantly influenced on profit of groundnut production. The profit of high purified grain, total material cost, family labor cost and hired labor cost were negatively and significantly influenced, and price and processing cost were positively and significantly influenced. The profit of low purified grain, total material cost and family labor cost were negatively and significantly influenced, and price and processing cost were positively and significantly influenced. Based on the findings, seed and high purified grain production were economically more attractive for farmers than other groundnut products. It would be concluded that, sample groundnut farmers can earn more profit by selling of value added groundnut products. Therefore, groundnut value added enterprise would be required to encourage for improving the socio-economic conditions of farmers