Analysis of Structure and Efficiency of Cassava Marketing in Ado-Ekiti Local Government Area of Ekiti State, Nigeria

Abstract

The study examined the structure and marketing efficiency of cassava in Ado-Ekiti Local Government Area of Ekiti State, Nigeria. Primary data were obtained using structured questionnaires and multistage sampling method was employed to select 183 respondents comprising 93 farmers and 90 marketers. The Herfindahl-Hirschman Index and Gini Coefficient were used to measure the degree of market concentration and the nature of competition in the market. The Herfindahl-Hirschman indices were 0.323, 0.346, and 0.316 for farmers, wholesalers, and retailers, respectively, suggesting that the market was uncompetitive at all levels. The computed values of Gini coefficient for cassava farmers, wholesalers, and retailers were 0.532, 0.465, and 0.569, respectively, indicating uneven distribution of income and uncompetitive market conditions. Two channels of cassava marketing were identified and the study demonstrates that the farmer-wholesaler-retailer-consumer channel had higher marketing efficiency and thus provides marketers with better opportunities for making more profits. Based on the findings, it is recommended that micro credit facilities should be made accessible to market actors to encourage investment and improve efficiency in cassava marketing.

Keywords: Cassava, marketing efficiency, Ekiti, Herfindahl-Hirschman Index, Gini Coefficient