STRUCTURE, CONDUCT AND PERFORMANCE OF PALM OIL MARKETING IN ABIA AND KADUNA STATES, NIGERIA

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STRUCTURE, CONDUCT AND PERFORMANCE OF PALM OIL MARKETING IN ABIA AND KADUNA STATES, NIGERIA

ABSTRACT

This study analysed marketing system of the palm oil in Abia and Kaduna states by describing the socio- economic characteristics, structure and conduct, performance, the factors that influence the performance and identifying the problems that faced palm oil marketing in the two States. Multi-stage sampling technique was employed in selecting the respondents. Primary data for the study were collected using structured questionnaire, administered to 180 respondents, these included the middlemen between the villagers that produce the oil and the wholesalers that gathers them in cans, drums and then sell to marketers (wholesalers) from the north which in turn sell to the retailers was used for the study. Data were analyzed using descriptive statistics, structure analysis, marketing margin, marketing efficiency and regression analyses. The results showed that the average ages of palm oil marketers in Abia and Kaduna were 38 and 36 years respectively. In Abia State, the male marketers were 72.5% and the female marketers constitute 27.5. In Kaduna State, 75% were male while 25% were female. Abia state, 45 % of the respondents had secondary education while in Kaduna state, 46.7% of the respondents had a secondary education. Majority of the respondents had experience in palm oil business. The value of gini coefficient (0.65) for oil palm trader in Abia State is tending towards unity indicating that there is an equality or high level of seller concentration at this level. From the Lorenz curve, the extent of deviation of the curve from the line of equality shows an imperfect market competition (65% gini). In the case of oil palm marketers in Kaduna state, for the wholesalers, the market was found to be purely competitive (gini 48%) as indicated in the Lorenz curve. The calculated gini coefficient (0.47) pointed towards a low level of seller concentration. The results further revealed that in Abia state, the middlemen had a marketing margin of 1.29% which signifies their profit making. The wholesalers had a marketing margin of 1.25% and the retailers had a marketing margin of 1.43%. In Kaduna state, the retailers had a marketing margin of 1.25% and the wholesalers had theirs as 1.21%. For the marketers in Abia State, the marketing efficiencies of the middlemen was 13%, wholesalers was 45% and the retailers was 43% while in Kaduna State the efficiency of wholesalers were 20% and retailers was 32%. Factors influencing marketing efficiency were age, education and years of marketing experience. The major constraints to palm oil marketing in the study area were Lack of efficient and affordable technology, lack of effective marketing research and dirty environment/poor hygienic state

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