ANALYSIS OF MARKET STRUCTURE OF GROUNDNUT (Arachis hypogaea L.) IN GOMBI LOCAL GOVERNMENT AREA, ADAMAWA STATE, NIGERIA
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Keywords

Efficiency
Groundnut
Marketing
Retailers
Structure

How to Cite

Augustine, B. W., Stephen, J., & Cosmas, W. (2024). ANALYSIS OF MARKET STRUCTURE OF GROUNDNUT (Arachis hypogaea L.) IN GOMBI LOCAL GOVERNMENT AREA, ADAMAWA STATE, NIGERIA . Journal of Agricultural Economics, Environment and Social Sciences, 10(1), 94-101. Retrieved from https://jaeess.com.ng/index.php/jaeess/article/view/224

Abstract

The study analyzed the market structure of groundnut in Gombi Local Government Area of
Adamawa State, Nigeria. The specific objectives were to describe socio-economic characteristics
of the respondents, determine the structure of groundnut market, and assess the efficiency of
groundnut market. Purposive and random sampling techniques were employed in selecting 150
groundnut traders from Kasuwan Buhu, Kasuwan Ganji, Kasuwan Tashan Marghi and Kasuwan
Butu. Data were analysed using descriptive statistics, Hirschman-Herfindahl index and Shepherd
Futrel index. The findings showed that 98.08% and 78.79% of the wholesalers and retailers were
male, with mean age of 35years and 37years for wholesalers and retailers respectively. Similarly,
96.08% and 87.88% of wholesalers and retailers had formal education, with a mean household size
of 5 and 6 persons for wholesalers and retailers respectively. Marketing experience of 9.80 years
and 9.11 years for wholesalers and retailers was observed with 78.43% and 93.94% of wholesalers
and retailers had no access to credit facilities. It was also observed that 84.31% and 91.92% of the
wholesalers and retailers belonged to Gombi Local Government grain traders union. Hirschman
Herfindahl Index of 0.02 and 0.01 in wholesalers and retailers were obtained indicating
competitive market for both categories. Price discrimination was noted for both market
functionaries due to variability of the groundnut products, but fairly stabilizes due to the
transparency of the market. Futrel index for marketing efficiency score of 5.50% and 6.73% in
wholesalers and retailers respectively were obtained indicating market inefficiency for both
functionaries. It was concluded that groundnut trading in the study area was gender biased,
competitive, but not efficient. Based on the findings, it was recommended there is need to encourage
female participation in order to have a fair gender ratio, and guarantee price should be fixed by
the government and marketing agencies so as to curtail incessant seasonal variations in the price
of groundnut and its products.

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