Evaluating the Dynamics and Marketing Efficiency of Palm Oil in Delta State, Nigeria

Abstract

This paper evaluated the dynamics and marketing efficiency of palm oil in Delta State, Nigeria. Data were collected from 450 randomly selected marketers, using well structured questionnaires. The data were analyzed using descriptive statistics such as tables, percentages, frequency, mean, spatial and temporal variations, marketing margin and marketing efficiency using the Shephered - Futrel Model. The findings revealed that 64% of the marketers fell between 20 – 40 years of age. About 64% of the marketers were female; 86% of the respondents were married. The findings also showed that 61% of the marketers had household sizes of between 6 – 10 persons while 51% had marketing experience of between 11 – 20 years. The average marketing margin, marketing efficiency and temporal price variation were N3,930/20 liters, 17.8% and N11,450/20 liters respectively thus the business was profitable. High transportation cost, activities of illegal tax collectors, arbitrary taxation and inadequate capital were identified as major problems of palm oil marketing in the study area. The study further revealed the unwholesome activities of marketing associations and groups which tend to hike prices abnormally. It was therefore recommended that price stabilization policy that will bring about perfect market conditions that are accessible and inclusive should be developed