ABSTRACT
This study was carried out to analyses the marketing margin
for rice among participants in the marketing of rice in Adani Uzo-Uwani Local
Government Area. A purposive sampling technique was used in the selection of
respondents. The study identified and described the marketing of rice in the
study area, the participants and their activities in the marketing of rice. It
determined the cost of perfuming the physical functions of transportation,
storage, processing
and margin accruable to the participants (producers, wholesales and retailers).
Problems of agricultural marketing were also identified to include production
conditions, transportation and communication, handling packaging and
processing, storage and warehousing institutional support input distribution;
urban food supply system and price stabilization. This work sets out elements
which make up an efficient marketing system to include functions and services,
agencies and channels, the enterprises of which they are composed and the
institutional framework within which they operate. The analytical tools used in
this work included descriptive statistics such as frequency, percentage, mean,
rage and market margin analysis. From he results it was affirmed that 28% of
the producers have no formal education and 5% have HND/B.Sc. certificates. The
age renege of producer and retailer is between 40 and 50 years and household
size of between 6 and 10. Farming and marketing experiences of the respondents
ranged from 40-50 years and they were mostly married. It was also found out
that the marketing margin for 50kg bag of milled rice sold in the study area
for the village merchant is N26, for the retailer N29, for the
wholesaler N10, and for the producer N 68. The study identify
source of supply (large numers of very small farms, each operating
independently), Igrge number of middlemen, transportation, inadequate storage
and warehousing facilities, forced sales, grading and standardization, adulteration and
instability of prices as problems to the participants in the study area. Among
the reduction of high cost of processing by provision of machinery and
machinery spare parts, to increase farmers yield, maintenance of rural feeder
roads using the mill for other purposes like cassava processing and the need
proper grading and standardization.
CHAPTER ONE
INTRODUCTION
Background
of the Study
Agriculture
has contributed immensely to the nation’s development. According to the Central
Bank of Nigeria (1995), the contribution of agriculture to the nation’s gross
domestic product in 1985 was 54.4%. Its role in food production, provision of
raw materials for industries, as a major source of employment and income to a
great number of the citizens of the country cannot be overemphasized. In
recognition of this crucial role of agriculture in economic development, past
governments have sought ways to increase domestic food production so as to
alleviate food shortage and excessive high cost of food items, which have been
a prevalent feature of many development countries.
The basic
problem of Nigeria’s agricultural sector is high and rapidly increasing food
prices, which are symptomatic of some deeply rooted structural problems. For
example, the all cities composite consumers price index for food with 1960 as
base rose from 216.6 in 1972 to 670.0 in December 1977 (Central Bank of
Nigeria, 1980 and 1979). Thus food registered a higher rate of price increase
than other items in the consumer’s budget. In 1979, the Federal Government
spent the sum of N83,225,940, that is about 15% of her annual budget on
agriculture out of the N5.2 billion capital expenditure. Out of N2.8
billion for current expenditure, Agriculture and rural development received N1,971,
170 that is about 69%, (Central Bank of Nigeria Annual Report 1986). In spite
of this big amount allocated to agriculture, when compared to other sectors,
there is no visible progress to justify the expenditure.
In order to
attain agriculture policy objectives, programmes such as the National
Accelerated Food Production Programme, the Agricultural Development Projects,
River Basic and Rural Development Authorities, Operation Feed the Nation, the
Green Revolution, Back to Land and Operation Food for All were launched.
Associated with these programmes were support facilitates such as 18
agricultural commodity research institutes, 44 agricultural inputs and services
units and the National Seed Services (Ogunrende, 1988).
Mention
should also be made of the Nigerian Agricultural Cooperative and Rural
Development Bank (NACRDB). The Supervised Agricultural Credit Guarantee Scheme
and Rural Banking Scheme Obeta, 1990. Yet agricultural policy objectives have
not be achieved as evidenced by the general food scarcity in the country.
Advancing reasons for this, Nnadozie (1983) stated that the declining
contribution of agricultural sector is not is not a consequence of development;
rather, it is as a result of neglect of agricultural Development.
Nigeria is
endowed with rich agricultural land, estimated at about 71.2 million hectares,
out of which 34 million hectare are under cultivation. The manpower and climate
are adequate to support a variety of crops. But in spite of all these
potentials, there is considerable gap between the estimated food supply and
projected demand of major food items (Olayemi, 1985). Because of this shortage,
Nigeria imports major food items.
Nigeria
spends huge sum of money estimated at about N15 billion annually on
importation of food (Newsletter publication 1985). T he same source reported
that in 1975, the sum of N21.71 million was used to import....
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