Market Integration of Small-Scale Farms: Exploring the Bambara Groundnut Markets in Nigeria

Abstract

The extent of uncertainty caused by price inefficiency and instability with reference to Bambara groundnut has made the subsector a dicey one. Markets that are not integrated may convey inaccurate price signals that might distort producers’ marketing decisions and contribute to inefficient product movement. The study analyzed the market integration of Bambara groundnut in South-east, Nigeria. The study population comprised all Bambara groundnut marketers in South-east, Nigeria. Out of the five states in South-east, Nigeria, two States will be purposively selected as the study area to establish the movement of prices between the two states to establish a fair comparison of prices between the producing zone and consumption zone. The choice of the two states was based on the predominance of Bambara groundnut marketers. A two-stage sampling technique was adopted in selecting 221 respondents that were interviewed for the study. Data for this study was poised from primary sources using a well-structured questionnaire, oral interviews and direct observations of Bambara groundnut marketers and was analyzed using descriptive and inferential statistics.- The results of the VECM showed that Enugu urban retail prices had a short-run influence of -0.057 although not signicant and a long-run significant influence of -0.2391 on Abia urban retail prices. The results of the VECM estimates for both short-run and long-run relationships indicated that the Enugu rural price of Bambara groundnut had short-run influences of -0.034023 and 0.0032032 with a long-run influence of -0.203230 on Abia rural price. The study recommended that to improve pricing effectiveness and market integration, it is necessary to encourage Bambara groundnut market price information in South-east Nigeria. The flow of information regarding Bambara groundnut prices, demand, and supply will improve both market integration and pricing effacing. The government should create regulations for information services. How to Cite: Agbo Josephine Nkechi, Okpukpara Benjamin C., Ude Kingsley David, Udemba Klinsmann Uche., 2023. "Market Integration of Small-Scale Farms: Exploring the Bambara Groundnut Markets in Nigeria." Journal of Agriculture and Crops, vol. 10, pp. 11-19.