The Sources, Distribution Channel and Market Structure of Fuel Wood in Enugu State

Abstract

The study examined the sources, marketing channel and also determined the market structure of fuel wood in the study area. For the selection of the respondents, cluster random sampling technique was adopted. In the study, 90 fuelwood harvesters in the rural areas of the study were chosen and 90 fuelwood traders namely wholesalers and retailers were chosen from urban areas of the study. Data were obtained from the respondents through primary sources. These data were analyzed by using percentage and Gini-coefficient. The study revealed that fuelwood was sourced from open wood land/forests, privately owned land and plantations. The distribution channel of the wood product showed that when the fuelwood is harvested from its source, it is moved by the harvesters through wholesalers, retailers and finally to consumers. The findings on quality perception of fuel wood showed that majority of harvesters (98%), wholesalers (89%) and retailer (82%) assess the quality of wood through high burning capacity of the wood. The analysis of Gini coefficient showed that there was low degree of concentration at all levels-harvesting, wholesaling and retailing as it recorded 0.16, 0.24 and 0.11 respectively. It also depicts that there is equality in the distribution of income among the fuelwood sellers. This shows that no fuel wood harvester or seller has control over the price of his/her good. The study concluded that further improvement is needed on fuel wood business for more efficiency of the trade.