Market Integration for Gum-arabic in Borno State of Nigeria
Keywords:
Market, integration, Gum-Arabic, State of NigeriaSynopsis
The study dctcrmi11cd the market ,i11lcgrntio11 or grnn-nrabic i11 13nmo Slalc or Nigeria. Fivc markets l'or gt111H11·ùbic namcly Maiduguri, (lubio, Monguno, Kukawa and Pulka wcrc purposively;selectcd for the study, based on thc:r volume of trade llow. Tèn gum-arabic sellers were ranclomly selected from each market, making a total of 50 respondenls. Dat 1 wcrc collccted
using questionnaire and i11tcrvicw schcdule. Multiple rcgression and correlation analysis were used to analyse tlie data. The findings of the study showed that guni-arabic mm:ket in Borno State was inefficient The market network was characterized by a long trade flow, with large nunÙJcr o.f intcnnediaries and, thereforc, poorly int.egrated. Gubio, Monguno, Kukawa, Pui ka and' Maiduguri inarketers .J_were mostly do,minated by agent middlemen. Other'marketing agents such as producers, facilitative
agencies, e porters and speculators were few · in all markets. Analysis of ucccs.'l lo 111ar·ket l'ncililicfi slH wcd l!wt lhc poor diR(n·1,1ujhc ln11rnporl bolllcnccks wns ns a rcsull of' lack or vchid.:s. Mnjor sources or pricc information in the mai:kcts wcrç dealers. Acccssibility to storage, grading and trninii1g làcilities were low, espcciaHy in rural isolated and acces:,ible markets, while market aulhorisation was not always frec. Analysis of price relationship between markets or gum-arabic showed that ail markets of grade I and lI gum:aarabic were coiTelated (P 0.5) among èach oth r, except Monguno and Gubio..TÏlne factor was positively correlated with the price in ail the markets. Extent of horizontal· market integration analysis revealed that for grade
l, relationship between Maiduguri and Gubio, Gubio and Monguno ànd vice versa were horizontally· integrated, wh 'le Maiduguri and Monguno were not. For grade :n, Maiduguri and .Pulka were horizontally integrated. Only Mo11gu110 nrnl Gubio 111nrkels 1'01· gntdc l wcrc. verlic·nlly inlcgrnted (Eii = 1.3), Gum arnbic mnrkclcrs (94<¾1, 76% 70%) ngrccd lhnl nnlurc or 111rnlc1, govcrnmcnl policy and dissimilarities in production rcspectively, had negative t!!Tect on bolh vertical and horizontal market intcgration. Based on the rindings of the study, it ,,,vas recommended that marketers should. form cooperatives to improve the· provision of basic 111atket j11formation espccially :on priccs, as well as invcst in establishment of stoi'agc, pt'occssing and transportation facitities.
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June 26, 2023
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