The Marketing Of Ginger In Kaduna State, Nigeria

Project and Seminar Material for Agricultural Engineering AE

The Marketing Of Ginger In Kaduna State, Nigeria


Abstract


This study dealt on the economic analysis of ginger (Zirrgiher. qf~cinnleIi) marketing in Kaduna State, Nigeria. The specific objectives were to determine the situation of the domestic market, and type of intermediaries involved; to ascertain and determine the channels and marketing margin for ginger, to determine the volume, destination and value of exports and derive policy implications based on the research findings.

Purposive sampling method was used to select three local government areas from Southern Kaduna for the study. The local government areas and markets selected were Kagarko, Kachia and Jaba. The reason being that these three local government areas were those with the largest markets for ginger in the state. Meanwhile, random sampling technique was used to select 60 producers and marketers as respondents for the study.

Instrument of data collection was a well structured and pre-tested questionnaire.

The result indicated that 36% of the respondents were between 3 1 and 40 years old while 63.3 percent others were between 41 and 60 years. On marital status, 81.7 percent were married while 16.7 percent others were single. Most of the respondents (60%) were literate while the remaining 40.0% others had no formal education. The average household size of the respondents was 8.4. Occupational distribution of the respondents showed that 75.0% of the respondents were farmers (producers) while 25.0% others were either traders and/or civil servants.

The market structure of ginger in areas under study was characterised by oligopolistic mode of competition. The reason being the existence of few market organisations to which most potential sellers and buyers were required to belong.

The marketing channel for ginger was a network of activities. This ranged from farmer (producer) -+ Farmgate -+ middlemen -+ wholesaler -+ Retailer and then the consumer. The marketing margin per bag for producers was N120.00 and N140.00 for fresh and dried ginger respectively. Wholesalers got N50.00 and N70.00 for fresh and dried ginger respectively while retailers made N1O.OO and N30.00 for fresh and dried ginger respectively

The total volume of ginger exported amounted to 346,041 tonnes of dried ginger with Europe importing the highest (39.33%) percentage by volume of the export. The destinations of the ginger exports were Europe, U.K, W. Europe, U.S.A, Canada, Asia and Morocco of which the total value of the export, from 1980 – 1997, was N50,4 10,000.00.

The potential for ginger production and marketing is very bright. This is due to its ability to be grown in a diversified clirnatic and geographical location and give quick returns to investment because of its short gestation period and a higher market value per unit weight than most other agricultural commodities.

Ginger marketing is beset by a myriad of problems such as poor storage qualities of the tuber, middlemen, low producer prices, and lack of rural infr-astructure.

It is recommended that rural infrastructure such as roads, railway network, electricity, potable water, storage facilities, efficient communication network etc should be improved to facilitate and enhance ginger marketing activities and efficiency

It is equally recommended that the producers come together as cooperatives as this will ensure quality control, obviate the role of middlemen and shore up internal producer prices.


Chapter One


Introduction

1.1 Background Information

Nigeria has in recent years, been involved in executing painfid economic recovery programmes arising from recession in international oil market and changes in the macroeconomic direction of the world. This is the consequence of dependence on a monolitic (crude oil) economy at the expense of other untapped economic resources of the nation It will be recalled that in the 1960s, Nigeria relied heavily on the agricultural sector for economic development (contributing over 70% of the GDP). But with the oil boom of the 1970s, the contribution of agriculture fell drastically to the extent that the nation became a net-importer of major agricultural commodities in the 1980s. Farming became an unattractive and non-lucrative business, but a means of survival for the aged in the rural areas. (Husseini, 1996).

Government, aware of this dangerous trend, has since put in place various policies and programmes geared towards resuscitating the sector. The introduction of the National Accelerated Industrial Crops Programme (FMAWR, 1993) is one of such programmes of


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