JOURNAL OF AGRICULTURE & SOCIAL SCIENCES ISSN Print: 1813–2235; ISSN Online: 1814–960X 10–001/AWB/2010/6–4–110–112 http://www.fspublishers.org

Full Length Article

Structural Analysis of Paddy Markets in Southern Part of ,

V.B. TARU1, R. JONATHAN† AND H. LAWAL‡ College of Agriculture P.M.B. 2088 Ganye, Adamawa State, Nigeria †Post Primary Schools Management Board, Taraba State, Nigeria ‡Department of Agricultural Economics and Extension Federal University of Technology Yola, Adamawa State, Nigeria 1Corresponding author’s e-mail: [email protected]

ABSTRACT

The structural analysis of paddy markets was undertaken in the southern part of Taraba state using total value of sales as index of measurement of the market share in 2007/2008 season. A total of 289 respondents categorised into wholesalers/producers (95 respondents) and retailers/producers (194 respondents) according to their proportionate quantity sold in 10 purposively selected markets were randomly sampled and used in the analysis. Data were collected using structured questionnaires and interview schedules. The marketers had diverse socioeconomic characteristics with female (63%) participated in paddy rice marketing than male (37%). Most of the marketers had formal education (71%) and were experienced marketers with family size above 5 persons (90%). The sellers’ concentration was high with high income inequality in paddy rice retail than wholesale in the area with Gini coefficient value of 0.74 and 0.53, respectively. This could result from the differences in their access to ownership and control of physical marketing facilities, funds availability and market behaviour and conducts. The markets therefore, exhibit features of imperfect markets of monopolistic competition. To reduce high concentration and income inequality among sellers especially in retail business, funds, security and physical market facilities should be provided to the paddy rice marketers in the area. © 2010 Friends Science Publishers

Key Words: Structural analysis; Paddy; Markets; Nigeria

INTRODUTION competitiveness, there must be improved access to market information and physical facilities not only for traditional The relevance of increasing the quantity of rice export crops but also for other crops of industrial production in Nigeria is not only important and crucial to importance such as yams, cassava, rice and sorghum. ensuring food security for Nigeria, but also provides a Gini coefficient was developed by the Italian timely opportunity for the farmers to work out modalities Statistician, Carrado Gini and published in his 1912 paper for boosting domestic rice production and thereby reduce titled “Variability and Mutability” (Dixon et al., 1988; excessive reliance on rice importation that has been a source Damgaard & Weiner, 2000). It is a measure of statistical of drain of our foreign exchange resource (Sanusi, 2003). dispersion most prominently used as a measure of inequality Olukosi and Isitor (1990) stated that a good and efficient in income distribution. Gini coefficient is most easily marketing system promotes the pace of economic calculated from unordered size data as the “relative mean development by encouraging specialization, which leads to difference,” that is the mean of the difference between every more output. possible pair of individuals, divided by the mean size. The The importance of agricultural and food markets for Gini coefficient ranges from zero to one. A perfect equality consumers, producers, national economies and international in concentration (low) of sellers is expected if Gini trade has always been and is expected to be extremely high. coefficient tends towards zero, while perfect inequality in Olomola (2005) stressed a need to improve the market concentration (high) of sellers is expected if gini coefficient structure and performance to enable farmers and agri- tends towards one. If Gini coefficient equals to one then the business firms operate in a transparent and speculative market is imperfect and if Gini coefficient is equals to zero business environment. the market is perfect and competitive. According, to Olomola (2001) it is imperative to put The model was used in determining concentration of the enterprises on the path of improved performance may be grain sellers in Eastern Nigeria (Okereke & Anthonio, well improved management actions, competitive 1988). Ada-Okungbowa (1998) and Anuebunwa (2002) used restructuring, efficient marketing management. To improve it to show the level of yam sellers’ concentration in Owo

To cite this paper: Taru, V.B., R. Jonathan and H. Lawal, 2010. Structural analysis of paddy markets in southern part of Taraba State, Nigeria. J. Agric. Soc. Sci., 6: 110–112

ANALYSIS OF PADDY MARKETERS IN NIGERIA / J. Agric. Soc. Sci., Vol. 6, No. 4, 2010

Local Government Area of Ondo and Abia States respectively Table I: Distribution of the Respondents by their Socio- found that there were high degree of inequality in income economic Characteristics distribution among the yam sellers and that the market was Variables Frequency Percentage highly concentrated exhibiting features of oligopoly. Age(years) Bila and Bulama (2005), Adinya et al. (2007) and 1-10 9 3.11 Umar et al. (2009) in separate studies used Gini coefficient 11-20 10 3.46 to determine the concentration of sellers in Maiduguri Cattle 21-30 21 7.27 31-40 43 49.48 Market, Ofatura Goat Market and Market Structure of Acacia 41-50 31 90.14 Species (Gum Arabic) in Borno State, Nigeria, respectively. > 50 16 5.54 Abu et al. (2007) examined the level of concentration of Total 289 100.00 vegetable sellers in Benue State using Gini coefficient. Sex Taraba state rate of paddy production is at increase Male 108 37.37 Female 181 62.63 from 25073.3, 26700.2, to 28521.8 thousand tonnes in 2003, Total 289 100.00 2004 and 2005, respectively (NBS, 2007). Hence, to sustain Educational level and improve this achievement, an equivalent marketing Non formal education 83 28.72 strategies has to be in place to avoid wastage and low Formal education 206 71.28 Total 289 100.00 income to the producers and marketers. Therefore, this Family size research was aimed at undertakes a structural analysis of 1-5 130 44.98 paddy markets in the area. 6-10 106 36.68 11-15 33 11.42 > 15 20 6.92 MATERIALS AND METHODS Total 289 100.00 Marketing experience (years) The study covered five Local Government Areas 1-5 30 10.38 namely , , Donga, Ibi and Ussa. Multistage, 6-10 155 53.63 11-15 84 29.7 purposive and simple random techniques were used. In the > 15 20 6.92 first stage two markets were purposively chosen from each Total 289 100.00 Local Government area, where rice is grown and marketed Marketing category in large quantity. The 10 markets purposively selected were Wholesalers/producers 95 32.87 Retailers/producers 194 67.13 Wukari main market and Gindin-Dorowa market from Total 289 100.00 Wukari, Ibi and Sarkin-Kudu markets from Ibi, Donga and Ananu markets from Donga, Chanchanji and Bete markets Table II: Distribution of Paddy Rice Wholesalers by from Takum and Lissam and Jinua-kogi markets from Ussa Average Monthly Sales in Southern Taraba State Local Gevernment Areas. Markets

In the second stage, 50% of the traders and producers 1 Sales Range Frequency Relative Relative 1-N (Xi) were sampled according to their proportionate market Frequency Cumulative frame, given a total of 289 respondents. The respondents (N) were categorised based on the quantity sold in the markets 0-100000 20 0.21 0.21 0.79 as retailers and wholesalers with the producers who also 100001-200000 15 0.16 0.37 0.63 marketed their farm produce in the same groups 200001-300000 13 0.14 0.51 0.49 300001-400000 11 0.12 0.63 0.37 accordingly. A team of trained field assistants were used in 400001-500000 10 0.11 0.74 0.26 collecting data using structure questionnaires and interview 500001-600000 7 0.07 0.81 0.19 schedules on 95 wholesalers/producers and 194 600001-700000 7 0.07 0.88 0.12 retailers/producers, which were used in the analysis. 700001-800000 2 0.05 0.93 0.07 800001-900000 3 0.03 0.96 0.04 900001-1000000 3 0.03 0.99 0.01 RESULTS AND DISCUSSION > 1000000 1 0.01 1.00 0.00 Total 95 1.00 The socio-economic characteristics of the respondents Source: Field Survey, 2007/2008 are shown in Table I and it indicates that the respondents are colour jobs rather engaged themselves in the paddy business good potentials for paddy marketing in the area. It also in the area. The respondents have family size range of 1-10 revealed that there were more female (62.63%) than male persons with about 81% and most of the respondents were (37.37%) in paddy trading. The research shown that more of experienced marketers (Table II). young and middle age traders (63%) were involved in the Gini coefficient analysis: The Gini coefficient analyses business than the old traders (37%). This is a good indication revealed higher value in retailing than wholesaling with for sustainable and active paddy marketing in the area. value of 0.74 and 0.53, respectively (Table III), which is Most of the traders had formal education (71%), this could contrary to the findings of Okereke and Anthonio (1988) on be that school leavers were no longer waiting for white the study of structural characteristics of the market for

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Table III: Distribution of Paddy Rice Wholesalers by level of sellers’ concentration. The difference in Gini Total Values of Monthly Sales in Southern Taraba coefficient between the wholesaling and retailing of paddy State Markets could have stemmed from differences in their access to ownership and control of physical marketing facilities, Total Value Mean Values Xi+1-Xi % of Total Coefficient trading experience, fund availability and differences in of Monthly of Monthly Monthly Mean Sales market behaviour and conducts (Table V). There were many Sales (Xi) Sales (Xi) Sales Difference (d) buyers and sellers selling different varieties of paddy with 99590 4979.50 8061.83 1.28 1337.46 ease entry and exit. The market structure therefore, is an 195620 13041.33 6712.52 2.52 1564.69 imperfect market of monopolistic competition. 256800 19753.85 22243,42 3.30 5558.63 461970 41997.27 13547.73 5.95 3157.98 555450 55545.00 34563.57 7.15 6650.03 CONCLUSION

630760 90108.57 21391.43 8.12 3292.14 780500 111500.00 64423.20 10.04 6803.09 Paddy marketers have diverse socioeconomic 879616 175923.20 157308.80 11.32 10240.80 characteristics, which affect their income either directly or 999696 333232.00 120268.00 12.86 4618.29 indirectly in the area. The Gini coefficient analyses portraits 1360500 453500.00 1096.70 17.51 10.86 that paddy marketing was an imperfect one with high 1550200 1550200.00 - 19.95 - Total 7770702 100.00 43233.97 concentration of sellers. Therefore, for the marketers to be Mean Value (Y) =81796.86 encouraged and remain in the business, the uneven income Gini Coefficient = 0.53 distribution rate should be reduced especially in retailing business. This may be achieved by providing funds and Table IV: Distribution of Paddy Rice Retailers by physical markets facilities to the marketers in the area. Average Monthly Sales in Southern Taraba State Markets REFERENCES

1 Sales range Frequency Relative Relative 1- N (Xi) Abu, G.A., A.S. Okpachu and J.A. Ujah, 2007. Marketing of Leafy Frequency Frequency Vegetables (Telferia occidentalis’ Ugu’ & Amaranthus spp 1 (N) Frequency N (Xi) A’leifor’) in Okpokwu Local Government Area of Benue State 0-10000 51 0.26 0.26 0.74 Nigeria. In: Proceedings of 9th Annual National Conference NAAE, 10001-20000 30 0.16 0.42 0.58 Theme: Consolidation of Growth and Development of Agricultural 20001-30000 29 0.15 0.57 0.43 Sector, pp: 147–153. 5th-8th November, 2007. Bauchi Nigeria 30001-40000 25 0.13 0.70 0.30 Ada-Okungbowa, C.I., 1998. The Market Structure, Conduct and 40001-50000 20 0.10 0.80 0.20 Performance for Yam in Ondo State, Nigeria. Agrosearch, 4: 12–20 50001-60000 15 0.80 0.88 0.12 Adinya, I.B., V.E. Enya and O.O. Kuye, 2007. Structure of Ofatura Goat 60001-70000 10 0.05 0.93 0.07 Market Obubra Local Government Area of Cross-River State. 70001-80000 8 0.04 0.97 0.03 Global J. Agric. Sci., 6: 55–59 80001-90000 5 0.03 1.00 0.00 Anuebunwa, F.O., 2002. A Structural Analysis of Yam Trade Flows into Total 194 1.00 Abia State of Nigeria. Nigerian Agric. J., 33: 17–22 Bila, Y. and Y. Bulama, 2005. Structure of Maiduguri Cattle Market, Borno Table V: Distribution of Paddy Rice Retailers by Total State Nigeria. Global J. Agric. Sci., 4: 159–164 Damagaard, C. and J. Weiner, 2000. Describing inequality in plant size or Value of Monthly Sales in Southern Taraba State fecundity. Ecology, 81: 1131–1142 Markets Dixon, P.M., J. Weiner, T. Mitchell-Olds and R. Woodley 1988. Erratum to Bootstrapping the Gini coefficient of inequality. Ecology, 69: 1307 Total Value of Mean Value xi+1-xi % of Total Coefficient National Bureau for Statistics (NBS), 2007. Agricultural Survey Report Mean Monthly of Monthly Monthly of Sales (d) November, 2007, p: 36. Federal Government of Nigeria Sales Difference (Xi) Sales (Xi) Sales Okereke, O. and Q.B.O. Anthonio, 1988. The Structural Characteristics of 102500 2009.80 3278.53 3.55 630.79 the market for grains in Eastern Nigeria. In: Adekany, T.O. (ed.), 158650 5288.33 263.39 5.50 64.16 Readings in Agricultural Marketings, pp: 116–124. Longman 161000 5551.72 1282.68 5.59 314.38 Nigeria 170860 6834.40 2213.10 5.92 464.75 Olomola, A.S., 2001. “Strategies and Impact of Agro-allied Parastatals 180950 9047.50 3592.50 6.27 574.80 Reform in Nigeria”. Agric. Econ., 24: 221–228 189600 12640.00 52888.57 6.57 5585.03 Olomola, A.S., 2005. Agriculture, Labour Market and Pro-Poor Growth”. 458700 65528.57 19696.43 15.90 1282.24 Invited Paper Presented at the AERC Seventh Senior Policy 681800 85225.00 70955.00 23.63 2064.79 Seminar, Cape Town, South Africa 780900 156180.00 - 27.07 - Olukosi, J.O. and S.U. Isitor, 1990. Introduction to Agricultural Marketing Total 2884960 100.00 10980.94 and Prices: Principles and Applications, p: 116. Living Books series Source: Field Survey, 2007/2008 Gu., Publications, Abuja, FCT Mean Value (Y) = 14870.93 Sanusi, J.O., 2003. A Paper Delivered at the Seminar on “Sustainable Rice Gini Coefficient =0.74 Production in Nigeria”. Held at the Hamdala Hotel Kaduna, 14th and 15th, January 2003 grains in Eastern Nigeria, that there was high Gini Umar, H.Y., C.S. Mesike, B.N. Agbonkpolor and C.O.A. Ugwumba, 2009. coefficient value in wholesaling than retailing (Table IV). Market Structure of Acacia Species (Gum Arabic) in Borno State, Since the values are all tending towards unity, it means that Nigeria. J. Agric. Soc. Sci., 5: 43–45 in paddy rice trading there is greater degree of income inequality among the sellers especially in retailing thus high (Received 01 January 2010; Accepted 23 April 2010)

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