ABSTRACT
The study was designed to
analyze the marketing of banana and plantain in Enugu State. The specific
objectives were to: describe the socio-economic characteristics of banana and
plantain marketers; identify the marketing channels for the crops, examine the
structure of the marketing system for both crops, estimate their marketing
margins at both wholesale and retail levels, estimate the rate of price
transmission and market integration among banana and plantain markets, and
identify the constraints facing the marketing of both crops. The study adopted
survey research design. Multi-stage sampling technique was employed to compose
a sample of 160 respondents (30 wholesalers and 50 retailers for banana, and 30
wholesalers and 50 retailers for plantain). Data for the study were collected
from both primary and secondary sources. Time series data on retail prices of
banana and plantain from 2007 to 2011 were obtained from Enugu State
Agricultural Development Programme (ENADEP). Primary data were collected using
structured questionnaire. Data collected were analyzed using Gini coefficient,
marketing margin analysis, Johansen co-integration test, Vector error
correction model, and descriptive statistics. The result showed that majority
of the respondents (87.50%) were females with average age of 35 years, 76.20%
of them were married while 41.20% attained primary education. The mean scores
for household size and marketing experience were seven and 13 years
respectively. Also, 78.30% of the wholesalers obtained their products in heaps
directly from producers while 21.70% bought from rural assemblers. Most of the
retailers (78.00%) obtained their products in bunches from wholesalers while
28.00% bought from producers. Furthermore, the results of the Gini coefficient
for banana and plantain retailers and wholesalers showed low levels of
inequitable distribution of income amongst them. However, inequalities existed
more at retail level than at the wholesale level. The mean marketing margin for
plantain (21.62%) and banana (13.68%) retailers showed that there was a
significant difference between them, while the marketing margins for plantain
(11.65%) and banana (10.58%) wholesalers did not differ significantly. The
analysis of price transmission and market integration showed that the Error
Correction coefficient (-0.22 and - 0.25) measured by the error correction
mechanism (ECM) for the rural and urban prices of banana had low rate of price
transmission, while the ECM result (-0.12 and -0.30) for the rural and urban
prices of plantain indicated also a low rate of price transmission; though,
showing the presence of market integration. Also, low capital/initial
investment, finance, high cost of transportation and heavy imposition of
tax/levies are significant constraints to plantain and banana marketing in the
study area. The study therefore recommended that government should set up
fiscal and monetary policies that will stabilize price for consumable products
like banana and plantain, and that government should reduce the high inequality
that exists among retailers by making available adequate credit to market participants
at appropriate interest rates. Finally, government should formulate and
implement policies targeted at improving infrastructures such as roads and
providing market information outfit that disseminates information timely to
marketers for improved marketing of banana and plantain.
CHAPTER
ONE
INTRODUCTION
1.1 Background
of the Study
Three out of
every four people in developing countries live in rural areas; 2.1 billion
people live on less than 2 US dollars a day and 880 million on less than 1 US
dollar a day (Damme, 2009). Majority of these people considered poor depend on
agriculture either directly or indirectly for their livelihoods (World Bank,
2007). The 2008 World Development Report (WDR) stresses the important role
agriculture can play in achieving the first Millennium Development Goal (MDG)
of reducing by halve the number of people suffering from extreme poverty and
hunger. The 2008 WDR further draws attention to the fact that agriculture has
unique features embedded in its ability to: function with other sectors as an
economic activity for livelihoods, produce faster growth, reduce poverty and
sustain the environment (Godoy and Dewbre, 2010).
In
agriculture-based economies, agriculture generates an average of 29% of the
Gross Domestic Products (GDP) and employs 65% of the labour force (Damme,
2009). In Nigerian economy, agriculture remains one of the largest sectors,
where it plays an important role as food provider, employer of labour and
foreign exchange earner, contributing about 40% of the GDP, broadly defined
with crops accounting for 85%, livestock 19%, fisheries 4% and forestry 1%
(Federal Ministry of Finance and National Food Reserve Agency, 2008).
Agriculture also employs about 77% of the working population and accounts for
70% contribution to GDP of the non-oil sector (Federal Republic of Nigeria,
2006; Mang, 2009). However, Ayinde, Adewumi and Ojehomon, (2009) noted that the
increase in farm output has not led to a corresponding increase in the earnings
of the vast majority of farmers. One of the factors emphasized as being
responsible for the imbalance is a poorly developed agricultural marketing
system for major food staples, leading to high rate of spoilage, rising farm
product prices and huge importation of food by government.
Banana and
plantain (Musa Spp.) are among the major staple food throughout the
humid tropics of the world (Chander, 1995). They are major food crops in the
humid parts of Africa and are major sources of energy for millions of people in
these regions. Banana and plantain fruits have diverse uses to millions of
Nigerians and they have always been important traditional staples food for both
rural and urban populace in Nigeria (Philips, 1995; Baiyeri, 1996).
Nutritionally, unripe banana and plantain are sources of iron, while ripped ones
provide mainly energy (Achike, Okoroafor and Mkpado, 2011).
Musa spp.
constitute a rich energy source with carbohydrates accounting for 22% and 32%
of fruit weight for banana and plantain respectively, and rich in vitamins A, B
and C, as well as minerals and dietary fibre necessary for healthy growth
(Honfo, Kayode and Tenkouano, 2007). The dense caloric content coupled with
nutritional quality makes Musa spp. one of the most important and
regularly consumed staple foods in Nigeria and other sub Saharan African
countries (Ajayi and Aneke, 2002; Lusty, Akyeampong, Davey, Ngoh and Markham,
2006). Banana and plantain provide cash income and employment to the rural
populace in the producing countries like Nigeria. The crops have become a key source
of revenue as they are not only traded within the region, but also exported to
other countries of the world (Ortis and Vuylsteke, 1996 in Adejoro, Odubanjo
and Fagbola, 2010). The status changes from food to food/cash crop and enhances
its importance. They are useful in the management of common diseases such as
diabetes, ulcer and tonsillitis and are also considered a major component of
livestock feed (Babatunde, 1991; Food and Agricultural Organisation, 2007).
According to
Ajayi and Mba (2004), banana and plantain have similar features of Musa spp.
and provides an important source of carbohydrate, minerals, vitamins and
revenue. Banana and plantain cultivation has become a feature of great
socio-economic importance from the point of job creation and food security.
These crops produce fruits throughout the year, the major harvest occurs in the
dry season (December to March). During this period, many food crops are in
short supply or difficult to harvest (Alves, 1987 as cited in Achike et al,
2011). Banana and plantain thus, contribute to food security, provide
employment, diversification of income sources in both rural and urban areas, as
well as contributing to the Gross National Product ( Nkedah and Akyeampond,
2003; Ajayi and Mba, 2007). In view of the importance of banana and plantain,
marketing of the products become pertinent to meet the needs of consumers and
also to increase income of the producers and the marketers in Enugu State.
Marketing of
agricultural products such as banana and plantain is said to involve everything
that happens between the farm gate and the consumer including processing,
storage, assembling, wholesaling and retailing (Taleke, 2010). Agricultural
marketing is the main driving force of economic development and has a guiding
and stimulating impact on production and distribution of agricultural products
(Mussema, 2006). The transformation of the production system requires the
existence of efficient market system that can transfer the products from the
points of production to the required market at the least possible cost (Lutez,
1994)......
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