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MARKET STRUCTURE, CONDUCT AND PERFORMANCE OF GARI PROCESSING INDUSTRY IN SOUTH WESTERN NIGERIA
Abstract
The purpose of this paper is to analyze the gari industry through a Structure-Conduct-Performance (SCP) framework utilizing cross- section data for the year 2009 in Southwestern Nigeria. A multi-stage sampling technique was used to select 260 gari marketers in the study area and structured questionnaire administered to them. Descriptive statistics, gross margin, gini-coefficient and production function analyses techniques were used. The profitability analysis showed that an average marketer incurred an average total variable cost of N7, 640.30 per week but earned average revenue of N12, 452.35 per week indicating N4, 812.05 as gross margin. A Gini coefficient of 0.4256 obtained in this study indicates a high level of concentration in the gari market.
1. Introduction
Despite the contribution of agriculture to the economy of the sub-Sahara African countries, Nigerian agriculture is dominated by the small scale farmers who produce the bulk of food requirements in the country. Despite their unique and pivotal position, the small holder farmers belong to the poorest segment of the population and therefore, cannot invest much on their farms. The vicious circle of poverty among these farmers has led to the unimpressive performance of the agricultural sector (Ajibefun 2002). As a result, per capita food production has not been able to keep pace with a rapidly expanding demand for food hence countries in the region have become increasingly dependent on commercial imports and food aid (World Bank 1996). To reverse this trend, most governments in the area have been designing research programmes and policy initiatives aimed at achieving national food security. One of the many crops being considered currently in this effort is cassava both in terms of its potential to ensure adequate food supply for all and generate rural household income thereby increasing access to food. Abubakar (2003) said that the current trend in cassava production and demand showed that cassava production is increasing globally and that growing of cassava is expanding to the semi-arid areas where cassava was not cultivated 30 years
Keywords: Gari industry, Southwestern Nigeria, profitability analysis, small scale farmers, agricultural sector.
MARKET STRUCTURE, CONDUCT AND PERFORMANCE OF GARI PROCESSING INDUSTRY IN SOUTH WESTERN NIGERIA
