Economic Analysis of Rice Marketing Margin in Adani Uzo-Uwani Local Government Area of Enugu State, Nigeria

Abstract:

This study was carried out to analyses the marketing margin for rice among participants in the marketing of rice in Adani Uzo-Uwani Local Government Area. A purposive sampling technique was used in the selection of respondents. The study identified and described the marketing of rice in the study area, the participants and their activities in the marketing of rice. It determined the cost of perfuming the physical functions of transportation, storage, processing and margin accruable to the participants (producers, wholesales and retailers). Problems of agricultural marketing were also identified to include production conditions, transportation and communication, handling packaging and processing, storage and warehousing institutional support input distribution; urban food supply system and price stabilization. This work sets out elements which make up an efficient marketing system to include functions and services, agencies and channels, the enterprises of which they are composed and the institutional framework within which they operate. The analytical tools used in this work included descriptive statistics such as frequency, percentage, mean, rage and market margin analysis. From he results it was affirmed that 28% of the producers have no formal education and 5% have HND/B.Sc. certificates. The age renege of producer and retailer is between 40 and 50 years and household size of between 6 and 10. Farming and marketing experiences of the respondents ranged from 40-50 years and they were mostly married. It was also found out that the marketing margin for 50kg bag of milled rice sold in the study area for the village merchant is N26, for the retailer N29, for the wholesaler N10, and for the producer N 68. The study identify source of supply (large numers of very small farms, each operating independently), Igrge number of middlemen, transportation, inadequate storage and warehousing facilities, forced sales, grading and standardization, adulteration and instability of prices as problems to the participants in the study area. Among the reduction of high cost of processing by provision of machinery and machinery spare parts, to increase farmers yield, maintenance of rural feeder roads using the mill for other purposes like cassava processing and the need proper grading and standardization.