Marketing efficiency of rice in Kwara State, Nigeria: a structure-conduct-performance model approach

Abstract

This study examined the marketing efficiency of rice markets in Kwara State, Nigeria using the Structure-Conduct and Performance (SCP) model approach. Primary data were used to elicit information from the marketers with the use of structured interview schedule. Data were analysed using descriptive statistics, gini-coefficient, pricing behavior and budgetary analyses. The results showed that the mean age of marketers was 44 years, 89% had formal education, , about 73% were females, and with a mean marketing experience. There exists price discrimination within the markets and a high level of inefficiency in the market structure of the marketers, with a gini coefficient of 0.71. The financial efficiency ratios of 0.16, 0.23 and 0.08 were estimated for rural buyers, wholesalers and retailers, respectively All the marketers ‘break-even’ during the period while wholesalers with the highest percentage of marketing margin were more efficient than other categories of marketers. It was concluded that government should design policies that will incorporate marketing program as a developmental program to improve the overall efficiency of rice marketing in the study area.