Profit Margins on Groundnuts Production

Groundnuts also known as peanuts are the second most important legume after bens in Uganda. It’s also the sixth most important oilseed crop in the world. Groundnuts are predominately cultivated by smallholder farmers on the average of 0.5-1 acre of land for food security. However, it is increasingly becoming a commercial crop too. Although North and Eastern Uganda are traditionally growing areas, production has spread to Western and Central regions as well.

The average yield of groundnuts in Uganda is about 290 kg per acre as opposed to yield potential of 1200 kg per acre. Some of the major constraints to enhanced groundnut productivity include low use of inputs including fertilizers, quality seed, and agro-chemicals, susceptibility to rosette disease, and poor market linkages for produce. Groundnuts are predominately marketed in form of unshelled pods, the seed for propagation, groundnut powder, G-nut paste, and predominately as shelled seeds.

The groundnut is scientifically known as Arachis hypogaea. Hypogaea means “under the earth”, is a species in the legume family. The groundnuts are annual herbaceous plants growing 30 to 50 cm tall. After pollination, the flower stalk elongates causing it to bend until the ovary touches the ground. Continued stalk growth then pushes the ovary underground where the mature fruit develops into a legume pod.