Economic Analysis of the Structure and Conduct of Yam Marketing in Benue State, Nigeria

Abstract

The study conducted the economic analysis of yam marketing structure and conduct in Benue State, Nigeria. It considered the market structure and conducts as well as the costs and returns of yam marketing in the study area. Cross-sectional survey design was adopted. Data were collected from 350 market actors using stratified sampling techniques. The methods of data analysis involved Gini Coefficient, Herfindal index and concentration ratio to assess the structure of yam market, Conjoint analysis was used to assess the conduct of the market, while gross margins and net profits were used to analyze the profitability of yam marketers in Benue State. The study found yam marketing in Benue State, Nigeria is not interdependent. This means that yam marketing is integrated in Benue State. Also, there is significant difference between the market margins of wholesalers and retailers in yam marketing in Benue State. The study concluded that since yam marketers are left to strive on their own, they suffer low gross margins and consequently derive negative returns on investment. Based on the findings, the study recommended that Benue State Government, in conjunction with Local Government Councils should establish a fund for yam marketers to enable the access credit facilities for their businesses. This will facilitate more entry into yam marketing in Benue Sate and hence reduce the level market concentration that currently tends toward oligopoly at wholesale level. Also, Benue State Internal Revenue Service should grant tax reliefs to yam marketers in Benue State to enable derive positive returns from their businesses.