Dynamics of markets and marketing of charcoal in Oyo State, Nigeria

Abstract

This study focused on both domestic and commercial purposes and assessed the changes that have taken place in the charcoal market over the past five years. Data were obtained with the aid of questionnaires, which were administered to the producers, marketers and consumers of charcoal in Oyo State. The eleven Local Government Areas used as study sites were chosen randomly to include major production areas and also to cover the urban, peri-urban and rural areas of the state. A total of 275 structured questionnaires were administered on randomly selected producers, marketers and consumers. The data obtained were analyzed using descriptive statistics and coefficient of variation models. The results revealed that 40% of the producers produced between 50 – 100 bags of charcoal per month and they obtained their raw materials from natural forest and farmlands. The average weight of one bag of charcoal is 45.5kg. women were mainly involved in the marketing of charcoal, with very few men. Most of them (46%) had been in the business between 6 – 10 years and on a multi-stage channel of distribution of charcoal. A higher percentage of the marketers, 45% obtained supply of charcoal four times per month which ranged between 1 – 100 bags. The gross market margin calculated was ₦105, while the net market margin was ₦ 24.86 per bag. The average prices per bag of charcoal across the state from 1996 to 2001 were ₦176, ₦187, ₦196, ₦236, ₦356 and ₦310.The consumption pattern of charcoal was seriously influenced by the scarcity and high price of kerosene. A total of 68% of the consumers have been using charcoal for about five years. It is concluded that due to the fluctuating availability and high prices of kerosene (the main substitute) the demand for charcoal will continue to rise and this will certainly have an adverse impact on sustainable forest management unless more trees are planted to replace the depleted ones.