Market Structure, Conduct and Performance of Gari Processing Industry in South Western Nigeria

Abstract

The purpose of this paper is to analyze the gari industry through a Structure-Conduct-Performance (SCP) framework utilizing cross- section data for the year 2009 in Southwestern Nigeria. A multi-stage sampling technique was used to select 260 gari marketers in the study area and structured questionnaire administered to them. Descriptive statistics, gross margin, gini-coefficient and production function analyses techniques were used. The profitability analysis showed that an average marketer incurred an average total variable cost of N7, 640.30 per week but earned average revenue of N12, 452.35 per week indicating N4, 812.05 as gross margin. A Gini coefficient of 0.4256 obtained in this study indicates a high level of concentration in the gari market.

Keywords: Gari industry, Southwestern Nigeria, profitability analysis, small scale farmers, agricultural sector.