ASSESSMENT OF PALM WINE MARKET IN EDO STATE

*Omofonmwan E.I, **Ashaolu O.F., **Ayinde I.A. and **Fakoya E.O.

*Nigerian Institute for Oil Palm Research, Benin City, Nigeria.

**Federal University of Agriculture, Abeokuta, Nigeria.

E-mail: isaacomofonmwan@hotmail.com

Abstract: Agricultural marketing system plays an important role in determining the prices received by the farmers and those paid by the consumers. This study assesses the marketing of palm wine in Edo State, Nigeria. A total of 210 respondents comprising of 90 wholesalers and 120 retailers were randomly selected from three villages each in seven local government areas in Edo State, using a multi-stage sampling technique. The studied local government areas include: Oredo, Egor, Ikpoba-Okha, Ovia North East, Ovia South West, Esan West and Igueben. Socio-economic and demographic data were collected from the respondents with the use of structured questionnaire. The data collected were analyzed using descriptive statistics, budgetary techniques, Shepherd Futrel coefficient of marketing efficiency. Findings revealed that most of the marketers were males in their active age; the mean age being about 43 and 38 years for retailers and wholesalers, respectively. About 46% of the retailers and 53% of the wholesalers completed their secondary school education. The average weekly marketing margin and net profit per 100 liters per retailer were N7,644.00 and N2, 923.78 as well as N1,529.00 and N508.36 per wholesaler respectively. Palm wine marketing in the study area is profitable and efficient as shown by the coefficient of marketing efficiency of 132% for retailers and 113% for wholesalers. The percentage share per liter of the consumer’s price along the value chain ranges from 25% for tappers to 37.3% for wholesalers to 37.7% for retailers. The major constraints faced by the marketers were high transportation cost (93.4% and 87.2%), lack of credit facilities (81.82% and 91.3%), inadequate supply (82.50% and 46.75%), inadequate electricity supply (35% and 99%) and excessive charges (42.8% and 72.42%) for wholesalers and retailers respectively. The study concludes that palm wine marketing is very profitable in the study area. The study therefore recommends among others: the provision of credit facilities, promoting potential entrepreneurship in palm wine marketing through awareness and the need for the provision of infrastructural facilities such as good roads and regular supply of electricity to reduce marketing cost.


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