Rice Market Structure, Conduct and Performance in Nigeria: A Survey of Akwa Ibom State Rice Marketers
Keywords:
Gini Coefficient, Rice marketing, Nigeria, Market performance.Abstract
The study examined the structure, conduct and performance of rice marketing in Akwa Ibom State, Nigeria. Data sourced from sixty traders in four markets were analyzed using Gini coefficient, Herfindahl Index, Net returns and descriptive statistics. The result indicated that more of the imported brands of rice were sold in the two urban markets while more of the local brands of rice were sold in the rural markets. Average share of imported rice across the markets was more than local rice. Greater quantities of rice sold in the markets were in 5kg measure, followed by 12.5kg, the least being 50kg measures. Average Net margin of ₦1,894.5 and ₦1,852.6 were realized for imported and local rice. Also, the local rice margin as percentage of total marketing margin (32.23%) was greater than that of imported (27.65%). The study further revealed an average marketing efficiency of 392.9% and 405.1% for imported and local rice. The Gini Coefficient (GC) and Herfendahl Index (HHI) values of 0.683 and 0.295 showed that the rice markets were highly concentrated with non competitive practices showing disparity in earnings. The prevailing duration stocks were held in shops by traders and sources of obtaining market information were three weeks to one month and mobile phone (66.7%) respectively. The use of shared trucks to convey stocks prevailed in the study area and the prevalence promotion strategy was friendly attitude to customer. Furthermore, Aba market accounted for the major source of stock supply in the area. The study recommends the provision of storage facilities, improving the quality of our local rice as well as pursuing policies that would discourage importation as the way out.
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