Oral presentation

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Socio-Economic Analysis of
Paddy Rice Marketers in
Southern Bauchi, Nigeria
By
Musa Andarawus
Department of Agricultural Economics and
Extension,
Federal University Wukari, Taraba State

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Introduction
• Rice is the most important staple food and the most
common cereal crop in Nigeria.
• It is the most fastest growing commodity in the Nigeria
food basket with annual consumption growth rate of
4.4%
• About 5.4 million metric tones are consume annualy.
• Local production account for only 2.3 million metric tones
• Rice marketing entails the all activities involved in moving
rice from the point of production to where it is needed by
the final consumer. (Bassey et al 2013)
• Marketing stimulates production, consumption as well as
accelerates economic development.

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• Marketing efficiency measures the effectiveness
with which a marketing function or service is
performed; the cost at which the service is
performed or the effect of this cost and the method
of performing the service
• Efficient marketing of agricultural commodity tend
to reduce risk and improve the marketers earning
• Efficient marketing system promotes economic
development by encouraging specialization and
leading to output enhancement.(Olukosi and Ositor
1990).

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Objectives of the Study
• To examine the socio-economic factors influencing
marketing efficiency.
• To analyze the economic effect of paddy rice price
variation the study area.
• To identify the problems of rice marketing in the
study area.

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Material and methods
• Bauchi state lies in the north-eastern Nigeria with total
land area of 482,359km2.
• Situated between Latitude 10.15N and 12.30N; and
Longitude 8.45E and 11.00E
• Agro-ecological zone – Sudan and Sahel savanna with part
of southern part in Guinea savanna
• Mean annual rainfall of 1300mm in the South-West zone
• Total population of 4,476 465 as at 2006 national census
• About 70-80% of the total population are farmers

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Sampling Techniques and Data Collection
• Both primary and secondary data were collected
for the purpose of this work.
• 2 local LGAs were purposively selected.
• 4 markets were randomly selected in each LGA
which comprises of 2 rural and 2 urban markets.
• 18 respondents were selected from each urban
market and 12 from each rural market through
simple random sampling.

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Data Analysis
• Data collected were analyzed using the following
statistical tools:
• Objective one was realized using multiple
regression.
• Objective 2 was realized using ratio to moving
average
• Objective 3 was realized using percentage and
ranking

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Regression Model
The generalised functional form of regression is as
follows:
Y = f(X1 + X2 + X3 + X4 + X5 + X6) + e
Where Y = Market efficiency
X1=Gender
X2= Age
X3 = Household size
X4 = Education
X5 = Experience
X6 = Location
e = Error term

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Three Functional Form of Regression
Tested
• Ordinary linear form.
Y= b0 + b1X1 + b2X2 + b3X3 + b4X4 + b5x5 + b6x6 + e
• Semi-log form.
Y = b0 + b11nX1 + b21nX2 + b31nX3 + b31nX4 + b41nX4 +
b51nX5 + b61nX6
• Double-log form.
Y =LnY = b0 + b11nX1 + b21nX2 + b31nX3 + b41nX4 +
b51nX5 + b61nX6

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Ratio to moving average model
M =
M= magnitude of price variation
Max= Highest annual price
Min = Lowest annual price
x 100

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Table 1: Efficiency as a function of socio-economic
characteristics of rice marketers
Variables Linear Log Semi Log Double Log
Constant 107.19 16 (16.842) (75.813)
Gender (X1) (-0.214) 0.99 (1.38)** 0.99 (1.373)**
Age (X2) 0.028(0.0463)** 1.28 (0.88)** -0.131 (-0.899)
HHS (X3) 0.013(-2.62) 0.154 (-1.47) 0.55 (1.475)**
HEQ (X4) 0.012(2.90)** 0.009 (1.04)* 0.007 (0.090)**
YE/Gm (X5) 0.009 (1.48)** 0.047 (3.76)** 0.048 (0.386)**
Location (X6) -0.937(-28.241) -0.649(-9.138) -0.644 (9.024)**
R 0.939 0.678 0.674
R2 0.881 0.460 0.455
Adjusted R 0.875 0.432 0.426
F – Statistics 139.772 16.062 15.708
** = Significant @ 0.005
Source: Field survey, (2018)

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Table 2: Magnitude and effect of rice price
variation
Location Max Min x 100 Range Average
Tafawa Balewa (U) 145 105 38.10 40.00 127.22
Bununu (U) 145 107 35.51 38.00 127.89
Zwal (R) 139.33 91 53.11 48.33 118.60
Marti (R) 139.33 90 54.81 49.33 118.11
Dass (U) 150 105 42.86 45.00 124.44
Baraza (U) 146 100 46.00 46.00 123.52
Wandi (R) 139.25 90 54.72 49.25 118.09
Bazali (R) 143 90 58.89 53.00 118.81
Source: Field survey (2018).

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Table 3: Problems of rice marketing
Source: Field survey (2017)
NOTE: Values in brackets are in percentage
SA = Strongly Agreed, A = Agreed, U = Undecided, D = Disagreed and SD = Strongly Disagreed
Problems SA A U D SD R
Lack of contact with extension agents 49(40.83) 62(51.67) 1(0.83) 6(5.0) 2(1.67) 4th
High cost of transportation 99(82.5) 20(16.67) 0(-) 1(0.83) 0(-) 1st
Inadequate market information 5(4.16) 37(30.83) 56(46.67) 19(15.83) 2(1.67) 10th
Lack of standard unit of measurement 3(2.5) 76(63.33) 34(28.33) 40(33.33) 6(5.0) 8th
Inadequate supply of produce 8(6.67) 76(63.33) 20(16.67) 16(13.33) 0(-) 6th
Fraudulent activities of middlemen 3(2.5) 81(67.5) 11(9.17) 19(15.83) 6(5.0) 6th
High cost of storage chemicals 8(6.67) 3(2.5) 12(10.0) 40(33.33) 57(47.5) 12th
Seasonal variation in supply 67(56.67) 47(39.16) 1(0.83) 5(4.16) 0(-) 2nd
Fraudulent activities of brokers/Ag 3(2.5) 89(74.17) 21(17.5) 7(5.83) 0(-) 5th
Fraudulent acts of trade union 0(-) 41(34.17) 37(30.83) 41(34.17) 2(1.67) 11th
Lack of quality control measures 5(4.16) 42(35.0) 33(27.5) 34(28.33) 6(5.0) 9th
Low capital volume 86(71.67) 27(22.5) 1(0.83) 5(4.6) 1(0.83) 3rd

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Conclusion
• The study concludes that socio-economic
characteristics of the respondents have significant
effect on the efficiency of rice marketing.
• The magnitude of price variation especially in the
rural areas were high and hence renders the
marketers earning unstable and the business risky.
• Problems of rice marketing such as transport cost,
seasonal rice supply and low volume of capital
among others were also identified

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Recommendations
• The marketers are encouraged to acquire more knowledge
through formal and informal education as this will increase
their efficiency.
• Rural feeder roads should be constructed by government,
NGOs or individuals to enable easy movement of produce.
• Marketers should form unions or cooperative bodies to
enable them access agricultural loans to boost their capital
volume.
• Government should create and or improve on providing
funding for dry season farming to ensure all year round of
rice production

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