Analysis of structure and performance of paddy rice marketing in Adamawa state, Nigeria

Y. Dauna1, D.Y. Giroh1, W.B. Adamu2

1Department of Agricultural Economics and Extension, School of Agriculture and Agricultural Technology, Modibbo Adama University of Technology, Yola, Nigeria
2Yola Electricity Distribution Company Yerwa Business Unit, Maiduguri, Nigeria

(Manuscript received 20 March 2018; accepted for publication 31 May 2018)

Abstract. Many factors such as inadequate capital, poor infrastructure, poor price information could bring about distortion in the structure and performance of the market process resulting to the reduction in profit margin of marketers and a disincentive to present and prospective marketers of paddy rice. This study was conducted to analyze the structure and performance of paddy rice marketing in Adamawa State, Nigeria. The specific objectives were to examine the structure of rice market and to evaluate the performance of the market participants in the study area. Data were collected from 204 rice marketers using multi stage sampling technique. Herfindahl-Hirschman Index (HHI) was used to determine structure of the market, while Marketing Efficiency measure was applied in analyzing the market performance of the market participants. The HHI pooled results for year 2013, 2014 and 2015 revealed that paddy rice marketing in Adamawa State has a highly competitive market structure (11.38 and 71) with low (42% and 24%) marketing performance for retailers and wholesalers, respectively. To improve the performance of market participants, it is recommended that government should open up and rehabilitate the road network in the hinterlands to facilitate easy evacuation of agricultural inputs and commodities in and out of the market. Financial support and formation of unions would enable the marketers benefit from scale operation and enroll for training on entrepreneurship.