Estimation of efficiency and transportation cost as factors in cereal marketing in a typical rural Nigeria

M.R. Ja’afar-Furo1*, Y. Yohanna1, A. Sulaiman2, A. Abdullahi3

1Department of Agricultural Economics and Extension, Faculty of Agriculture, Adamawa State University,
PMB 25, Mubi, Nigeria
2Department of Agricultural Economics and Extension, School of Agriculture and Agricultural Technology, Abubakar Tafawa Balewa University, Bauchi, Nigeria
3Department of Business Administration, Faculty of Social and Management Sciences, Adamawa State University, PMB 25, Mubi, Nigeria

(Manuscript received 26 April 2020; accepted for publication 15 October 2020)

Abstract. This study estimated the efficiency of cereal marketing and effect of transportation cost on gross receipts of traded grains in a typical rural Nigeria. A total of 120 cereal marketers were selected through a simple random method. A structured questionnaire was used for collection of data which was complemented by oral interview and group discussion for a period of one month (24th July – 23rd August 2019). Descriptive statistics, Marketing efficiency, and Multiple Regression were employed in making data analysis. Results indicated that most of the respondents were males (70.85%), married (66.67%) with a household size of 6-10 persons, and within the age range of 40-49 years (51.67%) with a larger proportion (41.67%) having had secondary education. The majority (54.17%) had cereal marketing as their main occupation and sourced business capital from personal savings. The most prioritized method of transportation among the marketers was the use of motor vehicles, and maize was ranked as the most traded staple among the respondents. Regression results revealed coefficients of 0.3758 and 0.5296 for transportation cost and miscellaneous services which were both significant at p<0.001 as the most influential variables to gross receipts of cereal marketing in the surveyed area. Further, the findings showed a marketing efficiency of 728.80%, implying a very highly efficient or profitable marketing system among the cereal marketers. The most notable challenges experienced were high transportation cost (83.33%), insecurity, inadequacy of capital among the marketers, and poor transportation facilities in descending order. Conclusively, it could be said that slightly enlightened married men who sourced capital from their personal savings dominated cereal marketing in typical rural Nigeria. And the cereal marketing was confirmed to be highly efficient in the area studied. It is, therefore strongly endorsed that agencies that intend to improve cereal marketing in the area under consideration and other rural communities in the country should address the challenges highlighted.