Performance of Cocoyam Market Chain in South East Nigeria

Abstract

The study examined the performance of cocoyam marketing chain in South east Nigeria. A total of 260 questionnaires were administered from September 2012 to August 2013 to producers, wholesalers and retailers selected through stratified multi-staged random sampling techniques. Data collected were analyzed using marketing margin, price spread, return on investment ratios, marketing efficiency, net income and net profit. There is seasonal variation in price from early to mid season and to late season. However, the average price spread from producers to wholesalers and retailers were ₦27,000, ₦15000, and ₦3,000 while their shares in consumers’ dollars were 60%, 33% and 7%. Their average operating marketing costs were ₦16193 ($80), ₦7700 ($38.50), and  ₦896 ($4.48) while the average net income of producers, wholesalers and retailers per year were ₦204,246 ($1021.21), ₦3,650,000 ($18,250) and ₦474,000 ($2370) each respectively (at an exchange rate of 1$ = ₦200). Their average return on investment from producers to wholesalers to retailers were 0.70, 1.09 and 2.41 for every 1$ invested on the business while their average marketing efficiency were 70%, 109% and 241%. The results also provide insights into the socio-economic and institutional characteristics. There was statistically significant different (P < 0.001) in net income of farmers, wholesalers and retailers. Producers, wholesalers and retailers lack capacity building, capital from formal financial institution. There is high transaction and search costs. Policy recommendations to these effects were suggested including strengthening marketing institutions through capacity building for stakeholders.

Key ward: Marketing chain, performance, price efficiency, cocoyam, Nigeria