Economic Analysis of Marketing Margin of Banana and Plantain in Enugu State, Nigeria

Abstract:

Agricultural marketing has a stimulating and guiding impact on production activities and distributing agricultural commodities, thus is one of the major forces driving economic development. Due to the income generated from banana and plantain marketing, it is necessary to examine its marketing margin. The profit of middlemen, the economic power of farmers and efficiency of the marketing system is better determined by marketing margin analysis. The present study, therefore, analysed the marketing margin of banana and plantain in Enugu State, Nigeria. Primary data gotten from 160 marketers through the use of questionnaires were used in the study. The marketing performance of banana and plantain were determined by marketing margin model, T-test statistics and Likert scale rating technique. The results revealed that the mean marketing margin for banana and plantain retailers were 12.04% and 17.78%, respectively. Also, the mean marketing margin for banana and plantain wholesalers were 9.68% and 10.44%, respectively. Wholesalers and retailers lack capacity building. Poor finance, low capital investment, heavy imposition of tax/levies and high cost of transportation were the severe constraints to banana and plantain marketing in the study area. Available and adequate credit facilities at an appropriate interest rate is required to reduce the problem of finance. Feeder roads should be improved in an effort to reduce the high cost of transportation and damaged to the fruits, hence increasing marketing margin.