Concentration in the North Eastern Nigeria’s Yam Market: A Gini Coefficient Analysis

Vb Taru,H Lawal

doi:10.4314/as.v10i2.7

Abstract

Policy formulation has failed to take cognizance of the fact that production and marketing constitute a continuum and that the absence of development in one retards progress in the other. The study analysed the concentration of yam markets in southern part of Adamawa and Taraba states. It specifically identified the degree of product differentiation, market information dissemination and determined the concentration of yam sellers in the markets. A total of 410 respondents comprising 210 retailers and 200 wholesalers were randomly sampled using simple random sampling techniques from six purposively selected yam markets namely, Ganye, Nadu and Tola markets in Adamawa State and Wukari, Sarkin-Kudu, and Chanchanjim markets, Taraba State. Descriptive statistics, Gini coefficient and Lorenz Curve were the analytical tools used. The common features used in yam differentiation were yam varieties and size or length and market information were majorly disseminated by means of personal contact (verbal message) and telephone (GSM). The Gini coefficient of 0.56 and 0.52 were obtained for wholesaling and retailing, respectively. The concentration of sales was high with high income inequality in yam wholesaling than retailing in the area. This difference could result from the differences in their access to ownership and control of physical marketing facilities, funds availability and market behaviour and conducts. The markets therefore exhibit features of imperfect markets of oligopolistic competition. To reduce high concentration and income inequality among sellers especially in wholesale business, funds, security and physical market facilities should be provided to the yam marketers in the area. Key word: Lorenz Curve, Gini Coefficient Analysis, Yam, Nigeria.

Highlights

The world production of yam was estimated at 28.1 million tons in 1993. 96% of this came from West Africa, the main producers being Nigeria with 71% of world production; Côte d'Ivoire 8.1%; Benin 4.3% and Ghana 3.5% In the humid tropical countries of West Africa, yams are among the most highly regarded food products and are closely integrated into the social, cultural, economic and religious aspects of life
Though Taraba State has been rated as the second largest Yam producing state in Nigeria with about 2,694,000 metric tons in 2006 (NBS, 2007), Adamawa State, the southern part is known for its large production and marketing of yam
Unlike in Taraba state where there were strictly yam markets, in Adamawa State the markets were heterogeneous in nature as lots of other agricultural commodities are found though yam dominate the marketing activities

Summary

Introduction

The world production of yam was estimated at 28.1 million tons in 1993. 96% of this came from West Africa, the main producers being Nigeria with 71% of world production; Côte d'Ivoire 8.1%; Benin 4.3% and Ghana 3.5% In the humid tropical countries of West Africa, yams are among the most highly regarded food products and are closely integrated into the social, cultural, economic and religious aspects of life (www.fao.org/dorep/X5415E). The world's largest yam producer, considers it to be a "man's property" and traditional ceremonies still accompany yam production indicating the high status given to the plant. White guinea yam (Dioscorea rotundata) is the widely grown and preferred yam species It is one of the staple food crops grown in large scale in Taraba State and southern part of Adamawa State. Though Taraba State has been rated as the second largest Yam producing state in Nigeria with about 2,694,000 metric tons in 2006 (NBS, 2007), Adamawa State, the southern part is known for its large production and marketing of yam. It is acknowledged to be one of the starchy foods which provide an important energy in the tropics (Francis, 2001) It is noted for its contribution to the growth of the Nigeria economy (Asiedu, 1999)

Methods

Results

Conclusion