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.