Performance of Groundnut Marketing in Song Local Government Area, Adamawa State, Nigeria

Abstract

The study analyzed groundnut marketing in Song Local Government Area of Adamawa State, Nigeria. Primary data were used for the study and were collected from two major markets, and three local markets that were purposively selected for the study. The major markets selected were Song main market and Dumne market, while the local markets selected were Golantabal, Loko and Murke (Bariki) markets. Random sampling was used in selecting 39 wholesalers and 101 retailers from these markets. The analytical tools used were frequency distribution tables, Gross and Marketing Margin analyses and Marketing Efficiency. The findings revealed that groundnut marketing is profitable with a gross margin of N25,427.58 and N550,817.94 per week for retailers and wholesalers respectively. The marketing margins for retailers and wholesalers were estimated at 18.28% and 15.97% shares respectively, while their corresponding marketing efficiencies were estimated at 114.5% and 115.5% respectively, this is an indication of good market performance. The major constraints affecting groundnut marketers include lack of credit facilities (77%) and high cost of transportation (71%). The study recommends that lending agencies should provide more credit facilities to groundnut marketers at concessionary rates to boost their business activities. Also, feeder roads should be rehabilitated/constructed to reduce transportation cost; storage facilities should be provided in the market places by the government, non-governmental associations and other market associations so as to reduce losses of the commodity in storage which causes price fluctuation.