Research Article
JA Akolgo;GT Kwadzo;DPK Amegas
Abstract
The study compared the profitability of groundnut production between Bunkpurugu-Yunyoo and West-Mamprusi districts in Northern Ghana. A Cobb -Douglas production function and gross income analysis were used in the analysis to determine the effect of “VAPAP” project on the profits of farmers in the two districts. It revealed that land size, capital, labour, experience and gender significantly influenced the output of groundnuts in the study area. The mean output per acre in Bunkpurugu-Yunyoo was 456.86kg of unshelled groundnuts whilst West-Mamprusi was 412.98kg with a mean difference of 43.89kg higher output in Bunkpurugu than West-Mamprusi at 1% significance level. A mean amount of Gh¢ 52.47 and Gh¢ 59.52 per acre were the cost of production in Bunkpurugu-Yunyoo and West-Mamprusi respectively. There was a mean difference of Gh¢7.0 higher cost of production per acre in West-Mamprusi than Bunkpurugu-Yunyoo at 1% significant level. A mean profit of Gh ¢ 77.25 and Gh¢ 42.50 were realized from Bunkpurugu-Yunyoo and WestMamprusi respectively. The mean difference of the profit was Gh¢ 34.71 at 1% significance level.