AN ANALYSIS OF COWPEA MARKETING MARGIN IN NIGERIA

Abstract

Cowpea, a legume crop that has high protein content. It is an important economic crop especially in sub-saharan Africa. It is traded among many merchants across Nigeria. A well developed and efficient marketing system of cowpea is essential towards encouraging expansion of its production and consumption. An analysis of marketing margin (maximization of an output-input relationship) as a measure of market performance is a critical element of understanding how cowpea marketing functions. The study consolidates information on cowpea marketing routes across twelve Nigerian major markets that were purposively selected (Iddo-Lagos, Port-Harcourt, Enugu, Abuja, Sokoto, Zungeru, Dawanau, Maigatari, Gombe and Maiduguri). A total of 225 cowpea merchants, 175 selling agents, and 175 farmers were randomly selected and interviewed using structured questionnaires. The result of the analysis (using descriptive statistics and marketing margin analysis) revealed that largest component of the marketing margin for cowpea accrues to transportation and handling charges constituting 51 and 10 percentages respectively. In terms of market pair – wise analysis, Gombe – Enugu has the highest level of traders’ profit of 20 percent, followed by Kano – Lagos route with 17 percent. Guarding expenses and road accidents or barriers encountered for the respective proportion of 0.83 and 1.26 percent. The complete circle of transaction takes between 1-3 weeks period. The study further revealed that cowpea marketing all over the country, especially inter-regional trade is a profitable undertaken that allow merchant to make a reasonable income to the tune of 15-21 percent of their total capital investment. Provision of public infrastructures will go a long way in reducing marketing costs, increase merchants marketing efficiency and thus increasing traders’ share of the marketing margin considerably.