Economic analysis of the structure, Integration and Performance of Rice Markets in Dekina Local Government Area of Kogi State-Nigeria

Abstract

The study examined the structure, integration and performance of rice markets in Dekina Local Government Area of Kogi State-Nigeria. A total of one hundred and twenty-five (125) rice sellers randomly sampled from a purposively selected five major markets were used for the study. The data for the study were collected with the aid of a questionnaire. Statistical tools such as simple descriptive statistics, Gini coefficient, Shepherd-Futrel functional models and bivariate correlation were used for data analysis. The study showed that female form the greater proportion of rice sellers in the area. The rice market was purely competitive with Gini coefficient of 0.43 and highly integrated as shown by positive price correlation coefficients for both foreign and local rice. The study showed a low marketing efficiency of 83% and 87% for local and foreign rice respectively, this is due mainly to high marketing costs associated with rice marketing. It is therefore, recommended that policies that improves rural infrastructure and marketing facilities be encouraged to reduce costs associated with the business. Also financial institutions should be encouraged to give loan to mitigate the problem of inadequate capital and a price stabilization policy to bring about perfect market performance.

Key words: Rice; Market structure; Market integration and Performance.