Analysis of Marketing Margins and Efficiency of Cassava-based Product in Cross River Central Agricultural Zone, Nigeria

Abstract

The study was carried out to determine marketing margins in the marketing of garri in Cross River Central Agricultural Zone, Nigeria. The study employed primary data which were obtained directly from garri marketers and analyzed with the use of descriptive statistics and marketing efficiency model. A three-stage (multi-stage) sampling technique was used in the selection of respondents and using 10% proportionality a sample size of 196 respondents was obtained from the sample frame of 1960. Analysis of the result showed that garri marketing in the area is greatly influenced by the socio-economic characteristics of garri marketers. Furthermore, the result indicated that marketers in Ofodua and Ochon markets recorded the lowest margin of ₦200 per bag of garri. This is against the ₦300 margin recorded by marketers in Apiapum, Okuni, Nko and Akparabong markets, ₦400 for markets in Ugep and Ikom Urban and ₦600 for the market in Agoi, respectively. The average marketing margin for garri in the markets was ₦378. Producers of garri sell it to the wholesalers in bulk sometimes through intermediaries like the village agents or directly to them. Retailers obtain the product from wholesalers and retail directly to final consumers also sometimes passing through movement agents and cooperative consumer outlets before reaching the final consumer. The mean marketing efficiency for garri across the study area is 0.78. This is slightly lower than the average efficiency level for Ugep, Apiapum and Ikom urban markets (0.90, 0.8. and 0.90, respectively). The following were recommended: trading activities and attributes of garri traders should be regulated by governments to ensure efficiency in the business, government, corporate bodies and NGO’s should assist in the rehabilitation of feeder roads to guarantee easy movement of garri from the producers to the consumers and traders in garri should be provided with training by government to increase their efficiency in the distribution of garri.