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COCOYAM MARKETING IN SOUTH EAST
NIGERIA
ABSTRACT
Cocoyam is
highly perishable and considerable economic losses occur after it is harvested.
This is as a
result of rot, sprouting and other physiological changes. These losses could be
reduced through efficient storage, processing and marketing. This study is
about economic study of cocoyam marketing in south-east Nigeria. It
specifically ranked market participants preference for cocoyam cultivars and the
reasons for such preferences. It showed the main marketing channels and
socio-economic and institutional factors affecting the choice of marketing
channels.
It showed
the structure and conduct of cocoyam marketing and socioeconomic
and
institutional factors affecting the volume of cocoyam marketed. It estimated
the costs
and benefits of cocoyam marketing as well as the net income of six storage
methods. It
assessed the effectiveness of six storage methods. The study was guided by null
hypotheses
that socio-economic and institutional factors did not determine the choice of
marketing
channels; that socio-economic and institutional factors did not determine
volume
of cocoyam
marketed; that the mean income of farmers, wholesalers and retailers did not
significantly
differ and that the mean cocoyam rot of the six storage methods did not
significantly
differ. A total of 260 marketers comprising 100 producers, 60 wholesalers and
100
retailers were selected through stratified random sampling techniques. Data
were
collected
from both primary sources. Primary data emanated from various questionnaires
and
weekly/monthly
monitoring of the six storage methods. Descriptive statistics such as tables,
charts,
percentages and mean and inferential statistics such net income analysis, four
firm
concentration
ratios, Herfindahl-Hirschman Index and Gini-Coefficient, Multinomial logit
regression
model, correlation analysis, Ordinary least square regression model and
Analysis
of Variance
were used to achieve the objectives. The results showed that producers,
wholesalers
and retailers preferences for cocoyam cultivars depended on culture and food
pattern more
than anything else. It also showed that four firm concentration ratios and
Herfindahl-Hirschman
Index did not indicate oligopolistic behavior although their Ginicoefficient
showed
unequal distribution of market sale. The average net income of producers,
wholesalers
and retailers per year were ₦204,246, ₦3,650,000 and ₦474,000 each
respectively
while the net income of the six storage methods were ₦56.92, ₦47.96, ₦47.80,
₦43.36,
₦15.25 and ₦3.00 per kg respectively. Approximately 33% of the variations in
the
volume of
cocoyam marketed were explained by socio-economic and institutional variables.
The
multinomial logit regression analysis has R2 value of 0.56 and showed that age
and
storage cost
were significant (P < 5%).The correlation results for objectives iii and vi
showed
that
distance to market, family labour, size of land allocated to cocoyam income
from other
sources and
purpose of marketing were significant at (p < 0.001) and thus contribute to
improvement
in marketing. The Analysis of Variance (ANOVA) showed statistically
significant
difference (P < 0.01) in the mean income of farmers, wholesalers and
retailers as
well as the
mean disease severity of the six storage methods. So, the first, second, third
and
fourth
hypotheses were rejected, while the alternatives were accepted. The study
therefore,
recommended
that government should build the capacity of market participants through
seminars.
Additionally financial/technical support should be provided especially to the
commercial
farmers. There is also need for agricultural-chain partnership between the
farmers and
processors.
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