Profitability Analysis of Marketed-End Products of Groundnut Farmers: A Case Study in Magway Township, Myanmar

In Myanmar, major oilseed crops are sesame, groundnut and sunflower. They are important crops due to high domestic consumption, generating export income and creating employment opportunities in the country. Among these major oilseed crops, groundnut is an economically important crop that provides raw materials for the value addition and enhances regional economic growth. In Myanmar, groundnut contributes to economic development and domestic edible oil sufficiency. A groundnut value chain involves different stakeholders who hold the different commodities and their profits are different. Among these stakeholders, farmers typically sell their marketed-end products either raw pods (with shell) or lone san (without shell). Therefore, this study examined the groundnut marketing flows and the profitability of each marketed-end product by sample groundnut farmers in Magway region, a major oilseed crop producing area. Data were collected using a structured questionnaire from 118 sample groundnut farmers using purposive and random sampling methods. Results of this study showed that there were two marketed-end products by sample groundnut farmers: pods (with shell) and lone san (without shell). Among a total of 118 sample groundnut farmers in growing season, 106 sample groundnut farmers sold their end product as pods while 12 sample groundnut farmers sold as lone san to various stakeholders along the flows of their marketed-end products. The gross benefit of pod production was 3,831,191 MMK/ha while that of lone san production was 5,101,563 MMK/ha, respectively. The benefit-cost ratio of pod production was 1.45 while lone san selling by sample groundnut farmers received higher ratio 1.79. The findings indicated that farmers received profits from both products but lone san production was more profitable. Despite incurring hulling costs, farmers received higher market prices and profits for lone san product. The study concluded that lone san production in Magway township is a profitable enterprise with potential for increasing farmers’ income and economic growth.