ECONOMICS OF YAM FLOUR MARKETING IN IBADAN METROPOLIS OF OYO STATE, NIGERIA

Abstract

The study attempted to determine the efficiency of yam flour marketing with a view to ensuring the existence of continuous supply and profitable market outlets for yam flour in Ibadan metropolis Primary data were collected with the use of structured questionnaire from one hundred and twenty (120) respondents in "Orita-merin " and "Bodija " markets using a combination of purposive and simple random sampling techniques. Data were analyzed using the Descriptive statistics, Marketing Efficiency and Net Marketing Margin analyses, the Gini-coefficient as well as the Concentration Ratio and the Herfindahl Index. The results show that yam flour markets were gender sensitive, as majority of the sellers (85 percent) were females. The mean age of sellers was 37years. Prices fixed were mainly determined by haggling (50 percent), demand and supply forces (about 25 percent) and weighing (about 18 percent). Both markets were economically efficient, it was observed that marketing cost is higher at Bodija market than Orita-merin market but efficiency is higher at Orita-Merin market. The Gini-coefficient of 0.3530 and 0.4467 for Orita-merin and Bodija markets, respectively, implied that the former tilts more to a competitive market situation while Bodija market tends towards a monopolistic competition. This is possible when the products can be differentiated with odour, taste, colour and texture. The concentration ratio for the dominant groups at Orita-merin market were 22%, 23% and 23% = 68 % and the Herfindahl index (HI) is 0.16, whereas the concentration ratio for the dominant groups at Bodija market were 20%, 24% and 26% = 70%, while the Herfindahl index (HI) is 0.17. To increase the pricing efficiency of yam flour marketing among sellers, the state government should look into those activities that could probably have contributed to increases in the marketing cost especially transportation, grinding (processing costs and rent.