An evaluation of the Marketing of Agricultural Products.
Abstract
This study examined sorghum marketing among rural farm households in Nigeria. Data were collected from
randomly sampled 100 sorghum marketers in Benue State using a structured questionnaire. Data were analyzed
using frequency distribution and percentages as well as marketing margin analysis and t-test statistic. The
marketing margin of an average sorghum marketer in the study area was 34.43%. This implies that 100% retail
price paid by the final consumer resulted in farm-to-retail price spread (marketing margin) of 34%. An average
sorghum marketer in the study area earns a farm-to-retail price spread of 0.34 Naira for every 1 Naira retail
price paid by the final consumer in the marketing process. The marketers in the study area had significant
marketing margin during their marketing transaction. The welfare of sorghum marketers was fully derived from
the business which they transact, suggesting that sorghum marketing serves as a source of livelihood for the
respondents.
chapter 1. Introduction
1.1 Background of the study
Agriculture provides primary means of employment for Nigeria and account for more than one third of the total
gross domestic product (GDP) and labour force. As food situation in Nigeria worsen after the 1960s, also physical
absence of improved inputs and modern techniques of production were perceived as constituting problems. In
recent years, the global fall in oil price and oil demand coupled with other inflationary and devolutionary
problems, which crippled foreign exchange forced governments at state and federal levels to introduce measures
geared towards revamping the economy and putting agriculture into proper shape. Sorghum (Guinea corn) is one
of the major food stuff in Nigeria, and its grain provides an ingredient for many unique indigenous food and
beverages in Nigeria.
Marketing is defined as a process of satisfying human needs by bringing products to people in the proper form
and at a proper time and place. Marketing has economic value because it gives form, time, place, utility to
products and services.
The marketing of agricultural products begins at the farm when the farmer harvests his products. The product
when it is harvested cannot usually go directly to the consumers. Firstly, it is likely to be located some distance
from the place of consumption in regular and continuous manner throughout the year. Secondly, storage is
required to adjust supply to meet demand. Thirdly, a product when it has been harvested is rarely in a form
acceptable to consumers. Therefore, it must be sorted, cleared and processed in various ways and must be
presented to the consumer in convenient quality and quantities for sale. Finally the farmer expects payment when
his produce leaves his possession, and hence some financial arrangements must be made to cover all the various
stages until the retailer sells the products to the final consumer.
This study examined sorghum marketing among rural farm households in Nigeria. Data were collected from
randomly sampled 100 sorghum marketers in Benue State using a structured questionnaire. Data were analyzed
using frequency distribution and percentages as well as marketing margin analysis and t-test statistic. The
marketing margin of an average sorghum marketer in the study area was 34.43%. This implies that 100% retail
price paid by the final consumer resulted in farm-to-retail price spread (marketing margin) of 34%. An average
sorghum marketer in the study area earns a farm-to-retail price spread of 0.34 Naira for every 1 Naira retail
price paid by the final consumer in the marketing process. The marketers in the study area had significant
marketing margin during their marketing transaction. The welfare of sorghum marketers was fully derived from
the business which they transact, suggesting that sorghum marketing serves as a source of livelihood for the
respondents.
