Profitability and factors affecting groundnut production under irrigation in Zimbabwe

Abstract

The study was aimed at estimating the profitability, as well as factors that affect groundnut (Arachis hypogea) production under irrigation in Zimbabwe. Data were collected from 102 households using a structured questionnaire as the main instrument. From individual plot holder analysis, the study revealed that about 72% of interviewed farmers made profits from groundnut production and marketing, with an average of 40% return per United States dollar invested, making groundnut enterprise a profitable venture in the study area. Linear regression analysis results revealed that market information access, farmers’ experience and cost of labour significantly affected the profitability level of groundnut production under irrigation. This was magnified by lack of improved seeds and poor road network, which were identified as major production and marketing challenges, respectively. Regular capacity building activities to boost farmers’ skills on groundnut production and marketing, as well as increase market information access, could significantly boost profitability level of smallholder groundnuts farming under irrigation.