Economic Analysis of Cocoyam Marketing in Anambra Agricultural Zone of Anambra State, Nigeria

Abstract

This study analyzed cocoyam market in Anambra Agricultural Zone of Anambra State, Nigeria. It determined the sources of cocoyam marketed in the study area; examined the profitability of crop’s marketing; compared the marketing efficiency of the crop’s wholesalers and that of the retailers and identified their marketing problems. Data for the study were collected from 60 respondents comprising of 40 retailers and 20 wholesalers sampled through Snow Ball Method (SBM) from the 4 major assembly markets (Eke Otuocha Aguleri, Oye-Olisa Ogbunike, Eke-Igwe Nteje and Oye-Farm Igbariam) of the study area. The markets were purposively selected as they are the biggest in each of the town communities. Data were collected using two sets of interview schedules (One for the Wholesalers and the other one for the Retailers).  Descriptive statistics, gross margin analysis and Shepherd-Futrel Model were used in data analysis. The study inter alia revealed that larger proportion (78.3%) of cocoyam consumed in the study area were sourced by the marketers from outside Anambra Agricultural Zone of Anambra State implying that the Zone is not self-reliant in cocoyam production. Result further shows that 0.33 and 0.62 returns on investment were made by the wholesalers and retailers respectively; revealing that cocoyam business is profitable. High transportation cost, lack of fund to increase business scale and poor storage facilities were found to be the main problems of the marketers. The study reveals that encouraging business opportunities exist on cocoyam’s marketing. Entry into the crop’s business was recommended for potential farmers, processors, traders and entrepreneurs.