Gross margins analysis of rice, beans and garri sellers in southern zone of Cross River State.

Abstract

The study calculated gross margins of rice (local white), beans (white) and garri (yellow) sellers in Watts, Okurikang and Marian markets in southern Cross River State. Analysis of variance technique was used to test for the statistical differences among the gross margins of each commodity in the three markets. Empirical results revealed positive gross margins for all sellers of the three commodities in the three markets. Comparing gross margins of rice, beans and garri in the three markets reveal that rice and garri sellers had insignificant differences in their gross margins while the mean gross margins for beans sellers showed significant differences between Okurikang market and the other two markets. The results imply perfect information flow for garri and rice markets and hence high probability of perfect competitive market structure for these products. The reverse is the case for beans market. Policy on increased local production of rice, garri and beans were recommended as they will help increase sellers and consumers’ welfare.

KEY WORDS: Gross margin, Variance, Market, Commodity, Sellers