AN ANALYSIS OF STRUCTURE, CONDUCT AND PERFORMANCE OF AGRO-CHEMICAL MARKETING: A CASE STUDY OF NIGER STATE, NIGERIA.
AN ANALYSIS OF STRUCTURE, CONDUCT AND PERFORMANCE OF AGRO-CHEMICAL MARKETING: A CASE STUDY OF NIGER STATE, NIGERIA.
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Date
2005-05
Authors
ABUBAKAR, MUHAMMAD BICHI
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Abstract
This study examined the marketing of agro-chemicals in Niger State, Nigeria. The state is
divided into three zones, Minna, Bida and Kontagora. The main objective of the study
was to analyse the structure, conduct and performance of the agro-chemical marketing in
the state. In addition, the specific objectives of the study were to identify participants in
the agro-chemical industry, determine the socio-economic characteristics of the
marketers, identify the types of agro-chemical marketed, determine the structure and
conduct of agrochemicals, identify the marketing channels and determine the marketing
margins.
The study was conducted during the 2004-cropping season. From a list of 81
dealers obtained through a reconnaissance survey a sample of 35 was made and primary
data were collected from them using interview schedule. The data were analysed using
descriptive statistics, Gini coefficient, Lorenz curve and marketing margins. The results
showed five participants the importers, the government, the wholesaler/retailer, the
mobile retailers and the farmers. The wholesaler/retailer and the mobile retailers were
foci of the study and are here referred to as the marketers. The socio-economic
characteristics of this marketers revealed that 97% of the people are male and the average
age was 40. The literacy level was 97%. The study reveals that there were 176 brands of
agro-chemicals consisting of 79 herbicides, 75 insecticides, 17 fumigants, 4 seed dressing
and 1fungicide, marketed in the state.
The Gini coefficient was 0.59 for the market participants and this shows that they
were fairly many, but there was no evidence of collusion or monopsonistic practices
among them. The Lorenz curve (Fig 4.1) showed deviation from the 450 line. Which was
an indication that the market was fairly deregulated and tends towards pure competitive
structure. The marketing channel indicated only one major path in which the
commodities passed from the importers to the wholesalers/retailers, and which they
passed from wholesalers to retailers and to the end-user (farmer).
The average marketing margins were 81% for the agro-chemicals companies, 1.5%
for wholesaler/retailer and 14% for the mobile retailer. The Profitability as percentage of
the marketing margins were 72.0% in Bida, 85.0% in Kontagora, 72.0% in Minna while
the average for the state was 79.0%. The insecticides have higher margin (26.0%) than
the herbicides (15.0%). How ever, the total profit from the agro-chemical marketing was
20.0% of the total revenue.
The marketing problems identified were adulteration and faking, low producer price
of farm output, bad weather, lack of training, transportation and bad debt from the mobile
retailers. The study concluded that marketing of agro-chemicals was efficient, but
recommended the establishment of satellite forecasting metrological station, smaller size
packaging, training and enlightenments for the marketers and guarantee produce price for the farmers.
Description
A Thesis Submitted to the Faculty of Agriculture and Postgraduate School of
Ahmadu Bello University in Partial Fulfillment of the Requirement for the Degree
of Master of Science (Agricultural Economics), Department of Agricultural
Economics & Rural Sociology, Ahmadu Bello University, Zaria, Nigeria
Keywords
ANALYSIS,, STRUCTURE,, CONDUCT,, PERFORMANCE,, AGRO-CHEMICAL,, MARKETING,, CASE STUDY,, NIGER STATE,,, NIGERIA