ABSTRACT

This study examined the structure, conduct and performance of rice markets in Abia State, Nigeria. Primary and secondary data were used in the study. The primary data were collected from a random sample of 1 50 rice marketers, comprising wholesalers and retailers, 60 consumers and 1 5 market union members. The respondents were drawn from rural and urban markets in the three agricultural zones of the state. The secondary data were sourced from the state Agricultural Development Programme (QDP). Data collected were analyzed using statistical tools as frequencies, percentages, averages, correlation coefficient, Gini coefficient, Chi-square test. The result of the data analysis showed the mean ages of the wholesalers and retailers as 45.2 and 40. 1 respectively. 'Thus, the marketers were relatively young. Majority of the wholesalers were males while females dominated the retail markets. The mean household size of the wholesalers, retailers and consumers are 7.1, 5.9 and 7.4 respectively. Also, the wholesalers were more educated -than retailers and had more years of experience than retailers. Majority of the marketers used their personal savings as source of capital for their business. Rice sold in Abia state was sourced internally and internationally. Local rice is produced in Nigeria while foreign rice is imported into the country and supplied through other neighbouring states, especially River State. Local rice is mainly supplied from Ebonyi State, Northern states, Enugu and Ohafia Agricultural zones of the states: The channel of distribution showed the intermediaries involved in the movement of this commodity from places of production to points of consumption. Furthermore, the result of the correlation coefficient showed that the markets are not perfectly integrated, as none has a coefficient of I .00, which is perfect market price integration. Also, the Gini coefficient showed that the structure of the market is not yet perfectly competitive but the retail market is more competitive than the wholesale market. Based on the sources of market information, some characteristics of the marketers, price formation, the conduct of the market showed that the market is tending towards perfect competition with insignificant influence of market unions. On the performance of the market, the result revealed that the business is profitable as shown by the net return of 57228.28, 433448.00, and N20662.52 for wholesales in Aba, Umuahia and Ohafia agricultural zones respectively while for retailers, it is N7563.64, N5369.48 and N37l9.36 respectively. The marketing margins were relatively high with low marketing efficiency in the zones. There is significant difference in the marketing efficiency in the zones. The major problems confronting the marketers are high transportation cost, inadequate capital, and bad roads amongst others. Based on the findings of this study, it is recommended that policies that encourage inter- state trade be strengthened. There should be improvement in infrastructure and access to loans in order to improve the efficiency of rice marketing in the state.