ABSTRACT

This study on the determinants of net income of rice marketers was conducted in Aba South Local Government Area in Abia State. The broad objective of the study was to analyze the determinants of net income of rice marketers in the study area. The study focused on wholesalers (distributors) and retailers (majority of who are wholesalers as well). The area was purposively sampled to get three (3) markets while sixty (60) rice marketers were randomly sampled from the markets using market unions' list of members. The data for this study was collected using wellstructured questionnaire instrument and the collected data were analyzed using descriptive statistics, costs and return analysis and regression techniques. The study shows that 51 .7% of rice marketers were females, 3 6.7% were within the ages of 26 and 35, 63.3% had a household size of 5-9, and majority (about 56.7%) had 1-10 years of experience in rice marketing. The significant variables that influenced net income of the rice marketers were storage cost, age, quantity of sales, and educational level. Average net income from the business was N419, 821.2 for wholesalers (distributors) and N194, 805.6 for retailers who are also wholesalers that sell in bits to the final consumers. Major constraints encountered by the marketers were high cost of transportation, competition, insufficient capital, low demand, and seasonality. Hence, the recommendations made in view of the identified problems were for government to reconstruct the bad roads so as to reduce the high cost of transportation. Since, the business was profitable, it has also been strengthened in the study area. The significant variables should be considered in policy issues.