Structure of soyabeans markets in Benue and Enugu States, Nigeria

Abstract

The importance of agricultural marketing in national development cannot be over-emphasized. The study examined the structure of soyabeans markets in Benue and Enugu States, Nigeria. Primary data were collected using questionnaire admininstered to 207 marketers. Data were analysed using descriptive statistics, regression model, HHI, Gini coefficient and lorenz curve. The result showed that the major determinants of soyabeans marketed were price of soyabeans, transfer and handling costs, education and quantity of credit. The study also found that Benue soyabeans markets were by dominated rural assemblers while they were not found in Enugu markets. Soyabeans markets were characterized by many buyers and sellers with little or no barrier to entry and exit. However, the seeds were homogenous. High values of HHI (2,017.18 and 1,081.97) and gini coefficient (0.84 and 0.81) were got for wholesalers and retailers implying high concentration of sales in the hands of few wholesalers and retailers. Soyabeans marketing did not exhibit competitive market behaviour. Education of marketers, provision of credit facilities as well as construction and rehabilitation of roads should be carried out. Increased household utilization could improve the competitiveness of soyabeans markets. Again, MIS should be established for better dissemination of information and improved decision making.