Research in Agricultural Sciences (Jan 2024)
Profit Efficiency of Paddy Rice Marketing in Kaduna State, Nigeria: Implications for Food Security and Poverty Alleviation
Abstract
This study evaluated the profit efficiency of paddy rice marketing in Kaduna State, Nigeria, with implications for food security and poverty alleviation. A multi-stage sampling technique was adopted. A total sample size of 180 paddy rice marketers was selected. Primary data were obtained using a well-structured and well-designed questionnaire. The data were analyzed using descriptive and inferential statistics. The result shows that the mean ages of producers, wholesalers, and retailers that are involved in rice marketing were 46, 44, and 41 years old. Paddy rice marketing is profitable. The producers had the highest marketing margin and the lowest operating ratio of 85.82% and 0.12, respectively. The retailers had the highest marketing efficiency of 20.92%. The rates of return on investment for producers, wholesalers, and retailers involved in paddy rice marketing were 5.54, 4.27, and 3.78, respectively. The purchase price, transportation cost, labor cost, and fees were the significant factors influencing the profit efficiency of the actors involved in paddy rice marketing. The significant socioeconomic factors influencing the profit inefficiency of paddy rice marketing among actors were age, gender, educational level, access to credit, and membership of cooperatives. The mean profit efficiency score for actors was 0.46, leaving a gap of 0.54 for improvement. The study identified transportation, finance, roads, and market infrastructure as the major problems associated with paddy rice marketing. The study recommended that credit facilities should be provided and made accessible; also, investment in market and road infrastructure is necessary to create an enabling environment for effective and efficient marketing.
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