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BANANA AND PLANTAIN
MARKETING IN ENUGU STATE, NIGERIA
Abstract
The study was designed to analyze the marketing of banana and
plantain in Enugu State. The specific objectives were to: describe the
socio-economic characteristics of banana and plantain marketers; identify the
marketing channels for the crops, examine the structure of the marketing system
for both crops, estimate their marketing margins at both wholesale and retail
levels, estimate the rate of price transmission and market integration among
banana and plantain markets, and identify the constraints facing the marketing
of both crops. The study adopted survey research design. Multi-stage sampling
technique was employed to compose a sample of 160 respondents (30 wholesalers
and 50 retailers for banana, and 30 wholesalers
and 50 retailers for plantain). Data for the study were
collected from both primary and secondary sources.
Time series data on retail prices of banana and plantain from
2007 to 2011 were obtained from Enugu State Agricultural Development Programme
(ENADEP). Primary data were collected using structured questionnaire. Data
collected were analyzed using Gini
coefficient, marketing margin analysis, Johansen
co-integration test, Vector error correction model, and descriptive statistics.
The result showed that majority of the respondents (87.50%)
were females with average age of 35 years, 76.20% of them
were married while 41.20%
attained primary education. The mean scores for household
size and marketing experience
were seven and 13 years respectively. Also, 78.30% of the
wholesalers obtained their
products in heaps directly from producers while 21.70% bought
from rural assemblers. Most
of the retailers (78.00%) obtained their products in bunches
from wholesalers while 28.00%
bought from producers. Furthermore, the results of the Gini
coefficient for banana and
plantain retailers and wholesalers showed low levels of
inequitable distribution of income
amongst them. However, inequalities existed more at retail
level than at the wholesale level.
The mean marketing margin for plantain (21.62%) and banana
(13.68%) retailers showed that
there was a significant difference between them, while the
marketing margins for plantain
(11.65%) and banana (10.58%) wholesalers did not differ
significantly. The analysis of price
transmission and market integration showed that the Error
Correction coefficient (-0.22 and –
0.25) measured by the error correction mechanism (ECM) for
the rural and urban prices of
banana had low rate of price transmission, while the ECM
result (-0.12 and -0.30) for the
rural and urban prices of plantain indicated also a low rate
of price transmission; though,
showing the presence of market integration. Also, low
capital/initial investment, finance, high
cost of transportation and heavy imposition of tax/levies are
significant constraints to plantain
and banana marketing in the study area. The study therefore recommended
that government
should set up fiscal and monetary policies that will
stabilize price for consumable products
like banana and plantain, and that government should reduce
the high inequality that exists
among retailers by making available adequate credit to market
participants at appropriate
interest rates. Finally, government should formulate and
implement policies targeted at
improving infrastructures such as roads and providing market
information outfit that
disseminates information timely to marketers for improved
marketing of banana and plantain.
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