ANALYSIS OF PRICE FLUCTUATION FOR CEREALS IN MAIDUGURI METROPOLITANT COUNCIL, BORNO STATE, NIGERIA

Abstract

The study analyzed the price fluctuation of cereals in Maiduguri Metropolis of Borno State, Nigeria. The data were collected through the use of questionnaire administered to 120 respondents. Frequency distribution and percentages were used to analyze the data. The results of the study showed that 70.8% of the cereal marketers were male while 29.2% were female. The percentage of the marketers that were married was 6.6%, while 35% were single. The family size analysis revealed that 50% of the marketers had family size above 10 persons and 16.7% less than five. Findings on the source of initial capital outlay showed that 50% got their initial capital from friends and 20.8% from personal saving. The result also showed that 75% of the marketers were retailers and 25% were wholesaler. On the analysis of causes of price variation, the result revealed that annual variability in production and speculative activities of middlemen were indicated by 58.3% each of the respondents, while poor storage of cereal had 16.7%. It indicated that sorghum had degree of price fluctuation of 9.8% while millet had 8.6%. Analysis of the effect of price fluctuation showed that inflation was indicated by 62.5% of the respondent, while high cost of labour had 16.7%. About 54% of the marketers had their commodities for future sale at the time of harvest in order to cope with price fluctuation, while 20.8% used contract sale to processors and manufacturers as their coping strategies against price fluctuation. It was recommended that women should be supported financially by the government and private organizations through the administration of soft loans and other credit facilities. Also, farmers and marketers should be educated through the extension agents to adopt new methods of cereal production in order to increase the supply of cereal to meet up with the demand.