Analysis of Timber Market Structure and Efficiency in Benue State, Nigeria

Abstract

This study analyzed timber market structure and efficiency in Benue State. Applying a multistage sampling approach at 30% sampling intensity, seven out of 23 Local Government Areas in the State were sampled for the study. A total of 256 respondents (164 timber traders, 79 chainsaw millers and 13 sawmillers) were sampled and interviewed using copies of semi-structured questionnaire to elicit data for the study. These were collated and analyzed using marketing efficiency and Gini–coefficient to determine timber market concentration and efficiency. Gini-coefficient values were 0.1699 in Zone A, 0.3394 in Zone B, and 0.1917 in Zone C. This implies low concentration of timber traders in the timber market, indicating a fairly equitable distribution of timber traders in the study area. Chainsaw millers’ Gini- coefficient values were 0.1891 for Zone A, 0.3218 for Zone B and 0.1829 for Zone C. Those of sawmillers were 0.2885 for Zone A and 0.2195 for Zone C. The marketing efficiency of timber traders in Zone B was 134.27%, followed by 131.52% for Zone C and 122.13% for Zone A. Similarly, chainsaw millers’ marketing efficiency were 184.19% in Zone A, followed by 179.38% in Zone B and 161.80% for Zone C. Finally, Sawmillers’ marketing efficiency for Zone C was the highest (284.66%), followed by Zone A (187.17%) and Zone B (142.90%). Timber marketing is therefore, a viable and efficient enterprise in Benue State. Sustainable management of forest resources in the state should be maintained for continuous supply of timber in the state.