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AN ANALYSIS OF STRUCTURE, CONDUCT AND PERFORMANCE OF AGRO-CHEMICAL MARKETING: A CASE STUDY OF NIGER STATE, NIGERIA.
ABSTRACT
This study examined the marketing of agro-chemicals in Niger State, Nigeria. The state is divided into three zones, Minna, Bida and Kontagora. The main objective of the study was to analyse the structure, conduct and performance of the agro-chemical marketing in the state. In addition, the specific objectives of the study were to identify participants in the agro-chemical industry, determine the socio-economic characteristics of the marketers, identify the types of agro-chemical marketed, determine the structure and conduct of agrochemicals, identify the marketing channels and determine the marketing margins. The study was conducted during the 2004-cropping season. From a list of 81 dealers obtained through a reconnaissance survey a sample of 35 was made and primary data were collected from them using interview schedule. The data were analysed using descriptive statistics, Gini coefficient, Lorenz curve and marketing margins. The results showed five participants the importers, the government, the wholesaler/retailer, the mobile retailers and the farmers. The wholesaler/retailer and the mobile retailers were foci of the study and are here referred to as the marketers. The socio-economic characteristics of this marketers revealed that 97% of the people are male and the average age was 40. The literacy level was 97%. The study reveals that there were 176 brands of agro-chemicals consisting of 79 herbicides, 75 insecticides, 17 fumigants, 4 seed dressing and 1fungicide, marketed in the state. The Gini coefficient was 0.59 for the market participants and this shows that they were fairly many, but there was no evidence of collusion or monopsonistic practices among them. The Lorenz curve (Fig 4.1) showed deviation from the 450 line. Which was an indication that the market was fairly deregulated and tends towards pure competitive structure. The marketing channel indicated only one major path in which the commodities passed from the importers to the wholesalers/retailers, and which they passed from wholesalers to retailers and to the end-user (farmer). The average marketing margins were 81% for the agro-chemicals companies, 1.5% for wholesaler/retailer and 14% for the mobile retailer. The Profitability as percentage of the marketing margins were 72.0% in Bida, 85.0% in Kontagora, 72.0% in Minna while the average for the state was 79.0%. The insecticides have higher margin (26.0%) than the herbicides (15.0%). How ever, the total profit from the agro-chemical marketing was 20.0% of the total revenue. The marketing problems identified were adulteration and faking, low producer price of farm output, bad weather, lack of training, transportation and bad debt from the mobile retailers. The study concluded that marketing of agro-chemicals was efficient, but recommended the establishment of satellite forecasting metrological station, smaller size packaging, training and enlightenments for the marketers and guarantee produce price for the farmers.
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