Abstract
The study analyzed spatial price variation in maize and sorghum marketing in Kaduna State. The data set for this analysis was monthly average secondary prices from 1999-2015. Data was analyzed using Augmented Dicker Fuller (ADF) test and Cointegration test and was performed using Stata 14.2 version of software. The results of the analysis showed that prices were found to be stationary at level and first difference and there is co-integration between the reference market and other markets. The equilibrium relationship between the price of maize and sorghum in Saminaka market and other markets was found to be positive. The speed of adjustment to the long run for sorghum between Saminaka-Giwa, Saminaka-Makarfi, and Saminaka-Godogodo was -1.08, -0.98 and -1.03 respectively, while that of maize was -1.98, -1.56, and -1.02. Implying that variation in prices are fully transmitted within a period of one month. It is recommended that government should ensure improvement of the operational environment of the marketers thereby drastically reducing transfer cost involved in the movement of grains across spatially separated markets.
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