SPATIAL PRICING EFFICIENCY IN ONION MARKETING IN NORTHERN WESTERN NIGERIA

Abstract

ABSTRACT Spatial pricing efficiency in the marketing of onion in northern western Nigeria was investigated. Data onion retail price variations were collected for nightly for a period of 12 months 2002 (June 2002 to May 2003) from 16 market locations eight each in Sokoto and Kebbi States. Wholesale price variations in two supply markets and four receiving markets in southern Nigeria were collected. Retail price difference between Sokoto Aliero onion markets and 14 other markets two states, wholesale price difference between the two markets and four receiving markets-in southern Nigeria were regressed ~'distance between the market pairs, to arrive a decision on spatial pricing efficiency, Data for the study were analysed suing simple linear regression analysis. The magnitude of the R’ value, indicated that distance between markets was not pair important determinant of price difference between two onion markets and 4 other markets within the two states. It was however, important between the two markets and the southern markets. Analyses of retail and wholesale prices different between the studied based on distance suggested some level of spatial integration for both retail and wholesale markets.