The Roles Of Middlemen In The Marketing Of Paddy Rice

ABSTRACT

The study assessed the role of middlemen in the marketing of paddy rice in Kwande Local Government Area of Benue state. Simple random technique was used to select respondents. 140 copies of questionnaire were administered with the aim of reaching out to 70 rice farmers and 70 middlemen in the four major markets of study area. Frequency distribution, percentage, ranking, mean, the matrices correlation and the student t-test were used to analyze the data collected. The studies revealed that majority (66.4%) of the respondents were male whose major occupation was farming. 78.6% of the respondents had formal education (Primary, Secondary and Tertiary. Their major source of capital for rice production and marketing was through personal saving and informal sources of credit. Majority (60.0%) of the middlemen determined the time of sales, they (middlemen) also determined market price of rice through haggling and haggling (Bargaining). Majority 84.3% of middlemen determined storage place for paddy rice in the area as personal house they also formed market associations to problems of rice marketing in the area. It was also revealed that, rice production in the area was on a small scale with 67.2% of farmers cultivating less than 21bags of rice per season. The t-cal of 5.337> t-tab of 1.96 at (p<0.05) revealed that, there was a significant difference between the profit generated per annum by farmers and middlemen, the correlation test also revealed that, there was a significant relationship between the price of 100kg bag of rice in the four major markets in the study area at 5% and 1%level of significance.

TABLE OF CONTENT

Title Page………………………………………………………… i

Dedication……………………………………………………….  ii

Declaration ……………………………………………………….. iii

Certification……………………………………………………….. iv

Acknowledgement ………………………………………………. v

Abstract………………………………………………………….. vii

Table of content………………………………………………….         Viii

List of table…………………………………………………………     xiii

List of figures………………………………………………………      xiv

CHAPTER ONE

1.0 Introduction……………………………………………………      1

Background of the Study  ……………………………………..       1

Statement of  Problem…………………………………………      2

1.3 Objectives of the Study ……………………………………….      4

1.4 Hypothesis Testing ……………………………………………      5

1.5 Significance of Study………………………………………….      5

1.6 Scope and Limitation of Study……………………………….        6

1.7     Definition of Terms……………………………………………       7

CHAPTER TWO

2.0 Literature Review…………………………………………. 9

2.1 Rice (Oriza sativa)………………………………………….. 9

2.2 Market and Marketing……………………………………. 10

2.3 Evolution of Agricultural Marketing……………………… 14

2.3.1 Types of Market ………………………………………….. 15

2.3.2 Marketing Margins……………………………………….. 16

2.3.3 Marketing Costs ………………………………………….. 19

2.4 Marketing Efficiency……………………………………… 21

2.4.1 Types of Marketing Efficiency…………………………… 22

2.4.2 Operational Efficiency……………………………………. 22

2.4.3 Pricing Efficiency………………………………………… 23

2.5 Marketing Infrastructure ………………………………… 24

2.6 Marketing Information……………………………………. 26

2.7 Market Training…………………………………………… 27

2.8 Enabling Environment…………………………………….. 28

2.9 Approaches to Marketing …………………………………. 28

2.10 Marketing Functions………………………………………. 30

2.10.1 Pricing and Exchange……………………………………… 30

2.10.2  Selling……………………………………………………… 31

2.10.3  Assembly…………………………………………………… 31

2.10.4  Physical Function  ………………………………………….. 32

2.10.5 Facilitating Function………………………………………… 32

2.11 Middlemen of Agriculture Marketing……………………………32

2.11.1 Merchant Middlemen…………………………………………….36

2.11.2 Agent Middlemen…………………………………………………37

2.11.3 Speculative Middlemen…………………………………………..38

2.11.4  Processors and Manufacturers……………………………………38

2.12 Marketing Organization…………………………………………..39

2.13 Marketing Channels………………………………………………39

2.14 Marketing Chain………………………………………………….42

CHAPTER THREE

3.0  Research Methodology…………………………………………  44

The Study Area…………………………………………………  44

Population of Study…………………………………………… 46

Sampling procedure and Sample size ………………………… 46

Method of Data Collection…………………………………….. 47

Variable Specification and Measurements……………………  47

Method of Data Analysis……………………………………… 48

CHAPTER FOUR

4.0 Results and Discussions………………………………………….51

4.1 Socioeconomic Characteristics…………………………………..52

4.2 Roles of Middlemen……………………………………………..55

4.3 Quantity of Rice Produced by Farmers………………………….58

4.4 Income made by both Farmers and Middlemen…………………60

4.5 Paddy Rice marketing Constraints………………………….  62

4.6 Solutions to Problems of Marketing…………………………   64

4.7 Profit Generated by both Farmers and Middlemen………….  66

4.8 Price of Rice at different Markets……………………………   68

CHAPTER FIVE

5.0     Conclusion and Recommendations ………………………….  70

5.1 Conclusion……………………………………………………  70

5.2 Recommendations……………………………………………  70

Reference……………………………………………………………  72

Appendixes …………………………………………………………  74

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