International Journal of Agricultural Policy and Research
Vol.6 (6), pp. 76-82, June 2018
Available online at https://www.journalissues.org/IJAPR/
Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.
Original Research Article
Analysis of price spread, profitability and constraints to dry maize ( Zea mays) marketing in Southeast, Nigeria
1Ozor, M.U, 1Ugwumba, C.O.A and *2Nwankwo, T.N
1Department of Agricultural Economics and Extension, Chukwuemeka Odumegwu Ojukwu University (formerly Anambra State University), P.M.B. 6059, Awka Main Post Office, Nigeria.
2Department of Agricultural Economics and Extension, Nnamdi Azikiwe University, P.M.B. 5025, Awka Main Post Office, Anambra State, Nigeria.
*Corresponding Author Email: tn.nwankwo(at)unizik.edu.ng; templenwankwor(at)gmail.com
The study examined seasonal price spread among of dry maize in Southeast, Nigeria; estimated the profitability of dry maize marketing; and identified constraints to dry maize marketing in the area. Multi-stage sampling method was used to select 225 respondents who were served with questionnaire to obtain primary data. Mean marketing margin and budgetary techniques were used to analyze the data. Per 100kg average peak season wholesale marketing margin of N 1,799 for yellow maize was higher than that of white maize (N1,331) while, retail marketing margin of (N2,091) for yellow maize was higher than that of white maize (N1,910). Per 100kg average lean season wholesale marketing margin of N2,230 was higher than that of white maize (N823) while retail marketing margin of N2,147 for yellow maize was higher than that of white maize (N2,030). Profitability indicators such as net marketing income, return on investment, net return on investment of N30,621,097.05, 1.6 and 0.6 for wholesalers of dry white maize, N30, 481,997.03, 1.6 and 0.6 for wholesalers of dry yellow maize; N28,206,114.35, 1.7 and 0.7 for retailers of dry white maize and N29,867,917.35, 1.8 and 0.8 for retailers of dry yellow maize respectively, proved the business profitable. Constraints to dry maize marketing were high cost of transportation, inadequate capital, storage pests and diseases, high market levy, unstable prices, poor storage facilities, too many traders, inadequate market information and poor sales. The dry maize marketers should form corporative societies to enable them transact the business at minimal cost and earn higher profit.
Key words: Price spread, profitability, constraints, dry maize, Southeast