ABSTRACT
Rice has become a staple food,
just like yam, garri and beans. As a result, the marketing of rice has become
very important due to increasing demand of the product. The study examined the
economics of farm-gate rice marketing in Enugu State, Nigeria. Five objectives
and one hypothesis guided the study. The study covered all the communities in
the local government areas in the three Agricultural Zones that produce rice in
the study area. The population of the study consisted of rice
farmers/assemblers, rice wholesalers and retailers. Purposive sampling
technique was adopted in drawing the sample. Data for the study were collected
from both primary and secondary sources through the use of pre-tested
structured questionnaire, oral interview, personal observations, journals,
texts and other publications. Data collected were analysed using means,
frequencies, percentages, marketing margin, gross margin and profit functions.
The major findings were: Majority of the farmers (77.1%) completed at least
primary education while all the marketing participants, namely wholesalers and
retailers passed through formal education, some up to degree level. The average
hectarage cultivated was 2.77ha, while average rice yield was 1.4 tons, with
Nsukka Agricultural Zone having the highest yield. Uniform measuring unit was
found to be lacking among the farmers and the marketing participants. The marketing
margin of the middlemen was found to be 14.3 percent while 85.7 percent was the
consumers’ spending that accrued to the producer as his own share of the
profit. The gross margin analysis showed that the farmers/assemblers had the
highest gross margin of N34,992.9.
Output, fertilizer
and labour were found to influence profit at significant level of 0.05. They
explained 88.3 percent of variation in profit. Out of this, output alone
explained 85.7 percent; fertilizer explained 1.8 percent while labour explained
0.8 percent. The Farmers were found to be profiteering at the rational areas of
the profit
functions. Factors such as low-level productivity, poor market infrastructures,
financial constraints were found to be militating against rice enterprise. Some
recommendations were made to help improve the productivity of rice enterprise.
These include the provision of better storage facilities and improved seeds,
establishment of uniform measuring units and provision of adequate machineries
as well as maintaining the existing ones, provision of chemical inputs such as
fertilizers and herbicides at a subsidized rate, provision of loans and credits
to farmers with little or no stringent measures to help them expand their scope
of operations. Above all, adequate extension services to our rice farmers on
up-to-date scientific rice enterprise should be ensured and the rehabilitations
of our rural roads for easy evacuation of farm produce.
CHAPTER
ONE
INTRODUCTION
1.1 Background Information
Consumption is the
sole end and purpose of all production and the interest of the producer is to
be attended to, only in so far as it may be necessary for promoting that of the
consumer (Smith, 1990). Production and marketing are interrelated that any
defects in one would readily affect the performance of the other. Every effort
should therefore be made to ensure that both farm and industrial products are
well distributed to the ultimate consumers (Kohl & Downey, 1972).
The marketing of
any commodity is a specialized technique and demands proper organisation. In
case of agriculture and particularly rice products, the marketing aspect is
even more important and demands a proper organisation, considering the
increasing demand of the products (Ikeme, 1990). Efficient marketing system
creates and activates new demand by improving and transforming production and
by seeking and stimulating customer’s links. It guides farmers to production
opportunities and encourages innovation and improvement in response to demand
and price (Kohl & Downey, 1972).
Olukosi &
Isitor (1990) remarked that it is within the marketing system that price
allocation of resources, income distribution and capital formation are
determined. Care (2004) described marketing as a machine that directs production
along the line most suited to the consumer requirement. Thus, production is
Mame (2006) also asserted that a guaranteed market for
farmer’s produce was a ready invitation to produce more. He further stressed
that the marketing arrangement in a community must ensure that what was
produced was sold or stored. Kohls & Uhl (1972) suggested that products
should not even be produced at all unless it has a market. Marketing therefore
begins with production on the farm. Hays & McCoy (1978) in their study of
grains marketing in northern Nigeria emphasized that an effective agricultural
marketing system facilitated optimum allocation of resources in agricultural
production and contributed directly to the total product as it increased price,
time and form utility.....
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