Transportation Cost Variation And Its Effect On Agricultural Product (A Case Study Of Edo State)

Project and Seminar Material for Agricultural Engineering AE

Transportation Cost Variation And Its Effect On Agricultural Product (A Case Study Of Edo State)


This research is focused on the effect of transportation cost variation on agricultural produce in Benin city of Edo State. It has been discovered that transportation and socio-economic development are closely related. This is also to introduce students and indigenes of Edo State to the problem and reason for the low standard of socio-economic development in Edo State. The various sectors such as agriculture, industry, trade and marketing, education and health services, forestry and other social infrastructures are aggregated to constitute what is so called socio-economy. It therefore, means that an improvement in this sector will elevate the socio-economic standard of living. Transportation is one of the factor that has a higher degree of relationship to the level of socio-economy development. In other to make clear the fundamental importance and effects of education in the development of socio-economy the study has been limited to agriculture as an agent of development. Furthermore, this study identifies the relationship between agricultural goods or products and transport cost variation. That is the higher the price of petrol that leads to increase in transport cost the higher the prices of agricultural products.

Chapter One


1.1 Background to the Study

Agriculture has been identified as the primary and biggest source of income in rural communities and provides employment to approximately 70 percent of its population (Pal, 2005). Hill (2008) opined that a significant proportion of agricultural task involve moving equipment and materials from one place to another which involve a wide variety of types and sizes of loads to be moved over different distances and types of terrain. Transport is indispensable to economic development especially in a developing country like Nigeria. This is because transport is essential to execution of daily economic and social activities in any given area. Girvan (2007) stated that transportation is a necessary precursor to the development of agricultural productivity and has a unique role and relationship with agriculture development because of the characteristics of agricultural production, commodities and markets. Crosssley et al. (2009) examined that transport operations are a basic component of agricultural input and produce supply chains and that transport can be the decisive factor for the success of a farm or business activity, or else the one constraint that makes costs prohibitive or renders a project economically non-viable. Njenga and Mbara (2005) claimed that transportation has the ability to intensify inequalities and deepen poverty if its negative externalities are not appropriately managed and thus transport by itself cannot have a decisive impact on poverty. Crossley et al (2009) recognized transport has a major component of the operation cost in the food chain and itโ€™s becoming a barrier for small-scale producers and for the development of efficient, lucrative agribusinesses.

World Bank (1999) indicated that the availability of transport provides the poor with better physical access to markets and other social amenities such as education and health services. World Bank (ref) further stated that there is ample evidence that the availability of transport enhances agricultural productivity by addressing the spatial dislocation and any unacceptable distributional consequences associated with lack of adequate means of transport particularly for the rural poor. Jacoby (2000) reported that road has particular important form of rural infrastructure providing cheap access to markets for agricultural output, thus improving access to rural transportation can stimulate economic development (Friedman, 2004) thereby increasing production capabilities of the rural farmers. Howe (2001) affirms that a better understanding of rural transport demands and constraints requires a more thorough analysis of the needs of individual households. Njenga and Mbara (2005) identified transport as a key ingredient in the development of rural areas which provides people with access to various goods and services. They further stressed that human development hinges on efficient transport which enables access to markets and service, information, opportunities and, networks

Agricultural have been a source of help to economy development especially the trend of agricultural product. In time of old, the early men live by agricultural produce through this, food and shelter, food from animals and plant e.g. root and harps are gotten from agriculture to live a healthy life.

Nevertheless, this product can be carried out from one place to another by transportation before the arrival of colonial masters (white men) we were dealing with human porter age and animal transportation.
Human porter age is the earliest means of transportation system whereby human being transport goods especially on their heads while animal porter age transportation involved the use of animal used, in carrying goods and services from one place to another e.g. donkeys horses e.g. these are commonly found in Northern part of Nigeria,

1.2 Statement of Problem

It is no news that the cost of transportation has an adverse effect on Agricultural produce as most of the producers of these agricultural products are rural duellers, and agricultural business is best achieved in the rural area as there is verse land for cultivation and production. It is on this note that the researcher intends to examine and finding solution to the following, the causes of transportation cost the effect to agriculture the effect for austerity measure on the citizens Nigeria.

1.3 Objectives of Study

The main objective of this study is to ascertain transportation cost variation and its effect on agricultural products, but for the successful completion of the study the following objectives is put forward by the researcher:

  1. To ascertain the effect of transportation cost on agricultural product.
  2. To ascertain the relationship between transportation cost and agricultural product.
  3. To ascertain the impact of transportation cost on the price of agricultural product
  4. To ascertain the role of transport cost variation on the production of agricultural produce.

1.4 Research Hypotheses

For the successful completion of the study, the following hypotheses were formulated

  1. H0: Transportation cost has no significant effect on agricultural product in Edo state
    H1: Transportation cost has significant effect on agricultural product in Edo state.
  2. H0: There is no significant relationship between transportation cost and the price of agricultural product in Edo state.
    H2: There is a significant relationship between transportation cost and the price of agricultural product in Edo state.

1.5 Significant of Study

The purpose of this study is to carry out awareness to the populace on how the transportation cost variation truly affected, firms, individuals and industries. It accepted that awareness is the study will create planning of these set of people that are affected, moreover, when the problem of road transport in Edo state are noted or known, with the help of appropriate recommendation, this will now bring about improves transportation system in Edo state

1.6 Scope of the Study

The scope of study consists of past and present situation of the relationship between price of agricultural products and transportation cost. The study intends to cover the following due to limited time and financial constraints. The factor effect production of goods and services, which can be transferred from it was made and where it was needed in other words, the researcher is sure to know and bring out the prospect of transportation in various economy. In conclusion, some important answers to problems of transportation and its effect on agricultural will be listed

1.7 Definition of Terms


To grow larger more mature or fully organized e.g.

Agricultural Products:

Food items brought from the farm cultivation of the soil


The general public


Carrying of goods and products from one place to another


Thing needed as a condition


This relates to electricity, water, telephone, telex, e.g. for maximum use/utility.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study.
  • Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain the effect of transportation cost variation on agricultural product.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the effect of transport cost variation on the price of agricultural product in Nigeria.

5.2 Summary

This study shows that transportation facilities in the study area are in poor state. This is obvious having a negative implication on agricultural development.

It has clearly come out from this study that inequitable distribution of infrastructure in the study area has resulted in the disparities in development that are primarily influenced by transportation. This situation is still redeemable.

The implementation of the recommendations of this paper therefore becomes imperative in turning around the study area. This is an opportunity that should not be swept under carpet.

5.3 Conclusion

Inaccessibility to transport can make it difficult for movement of agricultural produce, while the importance of rural transport to agriculture includes accelerate the delivery of farm input and the service of extension workers, it facilitate the evacuation and marketing of agricultural produce, reduce the level of wastage of agricultural produce and it bring about reduction in prices, and finally accelerate the delivery of basic needs of the majority. This research work analyzed the transportation cost variation and its effects on agricultural product in Edo state. towards improving the movement of agricultural produce to urban centers for consumption. In this study, the importance of good rural-urban roads and suitable means of transporting agricultural produce to encourage productivity and enhancing profitable prices and minimizing cost of transportation were find out. Agricultural produce like food crop, vegetable, tubers, fruits and poultry products are in commercial quantity in the study area, while farming and produce trading occur throughout the year, the transportation of agricultural produce in the study area being agricultural base local government with many villages and the location of the farm settlement in the remote part of the area is characterized by the deplorable condition of roads which are mainly local rural-urban roads Finally, potential investment in rural-urban transportation is a vital tool towards rural and economy development of the study area as well as reducing poverty

5.4 Recommendation

Based on the findings, the study recommends the need for infrastructural development advocacy and to revive the rail system of transportation of rural farmers. Also, there is need for research and dissemination of information in order to improve understanding on rural transport needs and travels in the rural areas to support agricultural development.

The level of development in the area is very low and this is as a result of the poor road condition among other contributing factors. To improve the level of development in the area, there is need for adequate provision of rural transportation and other infrastructural facilities. The need to empower the grassroots government is of paramount importance owing to the fact that the construction and rehabilitation of most rural roads fall within the jurisdiction of the local government. Maintenance culture is one of the major factors lacking in the study area.

To ensure that existing roads are kept in good condition, there is need to set up maintenance units at local government level who would be responsible for rural road maintenance. Such maintenance should cover clearing of bush edges, provision of adequate drainage system and the maintenance of bridges and culverts to prevent blockage of such bridges and culverts among others. Public-private partnership program is another means of ensuring sustainable rural development. Considering Nigeria population and size, it is impossible for the government to meet substantial parts of the needs of every community. To be able to do this and more effectively, there is need to encourage public participation in provision of basic facilities through various community self-help development programs.

Similarly, Citizensโ€™ empowerment towards the development of their community to reduce the level of dependence on government was also recommended. Various government policies on rural development in the past has died with the government that initiated it, there is need for successive government to uphold policies formulated by their predecessors to ensure that the aim is achieved rather than formulating new policies without achieving its aim.

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