ABSTRACT
The study empirically investigated market orientation among root and tuber crop producing households in South-Eastern Nigeria. Structured questionnaire was used to obtain data from the respondents. A multi-stage randomized sampling procedure was used to select 192 farmers for the study. The data collected were analysed using descriptive statistics to examine the average characteristics of the household producers, levels of market orientation among root and tuber crop producing households using mean and market orientation index. Ordinary Least Square (OLS) Method of the multiple regression was used to estimate the determinants of Market Orientation among root and tuber crop producing households, Pearson’s Moment Correlation model was used to evaluate the relationship between postharvest loss and market orientation while Principal Component Model (factor analysis) to identify the constraints militating against market orientation among root and tuber crop producers. Results from the analysis show that 192 (96 Abia state and 96 Enugu state) farmers were interviewed and retrieved for the study. Results also show that the mean age of farmers was 46.04 years and mean household size was 6 persons. Farmers had mainly secondary education (12.78 years) and their mean farm experience was 11.18. The farmers mean farm size was 3.09 with a capital investment of N94.208 and a monthly income of about N71,455. MOI result showed a mean market orientation score of 0.32, 0.26 and 64.61. Enugu state farmers allocate an average of 3.27ha to cassava, 1.24ha to yam and 1.44ha to cocoyam. Abia state farmers, also allocate 3.11ha (cassava), 0.87ha (yam) and 0.06ha (cocoyam), The mean market orientation from the pooled result showed that 3.18ha was allocated to cassava, 1.05ha allocated to yam and 0.75ha to cocoyam. The distribution of farmers based on type of root and tuber crop produced indicated that cassava, yam and cocoyam are the major root and tuber crop produced by farmers in South Eastern, Nigeria. The marketing strategies adopted by farmers include; selling at farm gate, village, urban and wholesale markets respectively. Farmers in the study area indicated that their major market places for root and tuber crops were farm gate and urban markets. However, other strategies employed by farmers for the marketing of their root and tuber crops were, selling in large quantities, use of improved seeds, better storage methods, advertisements and other marketing channels. From the regression result, coefficient for age, educational level, cooperative membership, income, market information, credit availability and non-farm income were significantly related to market orientation. A positive correlation was found between market orientation and postharvest loss for cocoyam for Enugu farmers at 1% level of probability. However, the result suggest that increase in market orientation will also lead to an increase in postharvest loss by about 30% level of probability. The study encourages policies aimed at improving the market orientation of root and tuber crop farmers such as providing chemicals, equipment for root and tuber crop production, strengthen extension delivery, rural infrastructures (good road network), access to processing and storage facilities at a reduced cost in the study area.
TABLE
OF CONTENTS
Title Page i
Certification ii
Declaration iii
Dedication iv
Acknowledgements v
Table of Contents vi
List of Tables x
List of Figures xi
Abstract xii
CHAPTER 1: INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Research Questions 5
1.4 Objectives of the Study 6
1.5 Research Hypotheses 7
1.6 Justification of the Study 7
1.7 Scope of the Study 7
CHAPTER 2: LITERATURE REVIEW 8
2.1
The Concept of Household in Market
Orientation 8
2.1.1
Strategic marketing 11
2.1.2
Operational marketing 11
2.1.3
Market orientation (MOI) 12
2.1.4
The concept of household in market orientation 12
2.1.5
Concept of market orientation strategies in
root and tuber crops 13
2.1.5.1 Production of large quantity of seeds 13
2.1.5.2
Use of better storage method 14
2.1.5.3
Use of improved seeds 15
2.1.6
Approaches to market orientation 16
2.1.6.1
The Kohli and Jaworski (K&J) model
of market orientation 16
2.1.6.2
Narver and Slater (N&S) model of
market orientation 17
2.1.7
Root and tuber crop production in
Nigeria 17
2.1.8
Root and tuber marketing system 24
2.1.9 The major root and tuber
crops produced in southeast zone 24
2.1.10
Major root and tuber crops produced in
southeast zone 25
2.1.10.1
Cassava 25
2.1.10.2
Yam 27
2.1.10.3
Cocoyam 28
2.1.11 Food
losses and food waste 30
2.1.11.1
Factors contributing to total food loss 32
2.2
Theoretical Framework 32
2.2.1
Market orientation index (MOI) 32
2.3
Empirical Studies of Market Orientation among
Root and
Tuber Crop Farmers 35
CHAPTER 3: RESEARCH METHODOLOGY 38
3.1
The Study Area 38
3.2
Sampling Procedure 40
3.3
Data Collection Procedure 40
3.4
Analytical Procedures 40
3.4.1
Multiple regression model 42
3.4.2
Correlation model 43
3.4.3
Principal component model 44
CHAPTER 4: RESULTS AND DISCUSSION 45
4.1
Socio-Economic Characteristics of the
Root and Tuber Crop Farmers 45
4.1.1
Average socio-economic characteristics
of the root and tuber crop
Farmers 46
4.2
Market Orientation Strategies of Root
and Tuber Crop Farmers 49
4.2.1
Distribution of the marketing outlets
where root and tuber crop
farmers sell their produce 50
4.3
Strategies Employed by Farmers for
the Sale of Root and Tuber in the Market 52
4.3 .1 Strategies employed by
farmers for the sale of root and tuber crops in the market 53
4.3.2
Forms products are marketed 55
4.4
Level of Market Orientation Among
Root and Tuber Crop Producing Households
in Eastern, Nigeria 56
4.4.1
Level of market orientation among root
and tuber crop producing
households in eastern, Nigeria 58
4.4.2
Percentage distribution of farmers,
based on the type of root and
tuber
crop produced 59
4.5: Determinants
of Market Orientation Among Root and Tuber
Crop Farmers 60
4.5.1
Determinants of market orientation
among cassava farmers 61
4.5.2
Determinants of market orientation
among yam farmers 65
4.5.3
Determinants of market orientation
among cocoyam farmers 69
4.5.4
Test of hypothesis 1 72
4.6 Correlation
of Market Orientation and Postharvest Loss on
Root and Tuber Crop in South Eastern,
Nigeria 73
4.6.1 Correlation
of market orientation and postharvest loss on cassava
in
south eastern, Nigeria. 74
4.6.2
Correlation of market orientation and
postharvest loss on yam in south eastern,
Nigeria 75
4.6.3
Correlation of market orientation and
postharvest loss on cocoyam in south eastern, Nigeria 77
4.6.4
Test of hypothesis 2 77
4.7 Constraints
Militating Against the Market Orientation of Root and
Tuber Crop Production 78
4.7.1 Varimax –rotated factors militating against
market orientation
among root and tuber crop farmers
in the study area. 79
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS 83
5.1 Summary 83
5.2 Conclusion
87
5.3 Recommendations
87
References
LIST
OF TABLES
4.1:
Average Socio-Economic
Characteristics of the Root and
Tuber
Crops Farmers 45
4.2:
Frequency distribution of the
marketing outlets where root and tuber Crop
farmers sell their produce 59
4.3:
Strategies Employed by farmers for
the sale of root and tuber crops in
the market 52
4.4:
Level of Market Orientation among
Root and Tuber Crop Producing Households
in South Eastern Zone, Nigeria 56
4.5:
Determinant of Market Orientation
among cassava farmers in
South
Eastern, Nigeria 60
4.6:
Determinants of Market Orientation
among Yam Farmers in South
Eastern,
Nigeria 64
4.7:
Determinants of Market Orientation
among Cocoyam Farmers
in
South Eastern, Nigeria 68
4.8:
Correlation of Market Orientation and
Postharvest loss on
Cassava
in South Eastern, Nigeria 73
4.9:
Correlation of Market Orientation and
Postharvest loss on Yam
in
South Eastern, Nigeria 75
4.10:
Correlation of Market Orientation and
Postharvest loss on Cocoyam in
South Eastern, Nigeria 76
4.11:
Varimax –rotated Factors Militating
Against Market Orientation among Root
and Tuber Crop Farmersin the Study Area. 78
LIST
OF FIGHURES
2.1: Market Orientation
Concept 11
2.2: Map of Abia State 39
2.3: Map of Enugu State 39
2.4: Farmers Selling at Farm gate 51
2.5: Root and Tuber Crop
Market in South Eastern, Nigeria 51
2.6:
Percentage distribution of farmers
based on forms in which they
market
their products. 54
2.7: Percentage
Distribution of farmers based on the type of root and
tuber
crop produced 59
CHAPTER 1
INTRODUCTION
1.1
Background of the Study
Roots and tubers
are food crops that basically provide energy in the human diet in the form of
carbohydrates. These refer to plants that store edible material in subterranean
root, corm or tuber (Ojo,Nmadu, Tanko, and Olaleye, 2013). FAO (2013) defined
roots and tubers as plants yielding starchy roots, tubers, rhizomes, corms and
stems. They are used mainly for human food (as such or in processed form), for
animal feed and for manufacturing starch, alcohol and fermented beverages.
Apart from their high water content (70-80 percent), these crops contain mainly
carbohydrates (largely starch that account for 16-24 percent of their total
weight) with little protein and fat (0-2 percent each) (FAO, 2002)
The commodities
that made up root and tuber crops are cassava (Manihot
esculenta), sweetpotato (Ipomea batatas),
yam (Dioscorea spp), ginger (Zingibar officinale), cocoyam (Xanthomas and Colocasia spp) and potato
(Solanum tuberosum). Root and tuber
crops provide a substantial part of the world’s food supply, and are also important
sources of animal feed and industrial products. On a global basis,
approximately 45% of root and tuber crop production is consumed as food, with
the remainder used locally as feed (Chinaka, Akinpelu, Okoye and
Asumugha, 2013).
Subsistence
agriculture cannot gurantee food security and welfare (Onubuogu and Onyeneke,
2012). Majority of the population in Nigeria live in rural areas and depend on
small scale agriculture for food and income (Onubuogu and Onyeneke,
2012). Considering
limited prospects for rural industrialization, small holder agriculture remains
the major engine of rural growth and livelihood. Therefore, Overcoming the
challenges of improving rural incomes in Nigeria will require some form of transformation
of the rural subsistence, low-input, low productivity farming systems that
currently characterize much of rural Nigeria. However, for rural income
improvement market orientation is therefore required (Gebremedhin and Hoekstra,
2007).
Market orientation is a production philosophy which
focuses on consumers’ taste, preferences and satisfaction as its basic
production and business objectives (Onuoha, 2007). It is a ground where the
production objective is to satisfy large population instead of just the
household doing the production. Hence, this may lead to the adoption of
efficient marketing strategies and methods such as marketing analysis, market
research, sales forecasting, product planning and development, credit
management and financing, sales promotion and advertising, etc. These are
geared towards directing the farmer in the management of all the farm
activities in such a manner as to satisfy the market demand and increase profit
and income of the farmer (Arene, 2003).
Promoting market-orientation among agricultural
producers and the small holder farmers in developing countries is the focal
point for development of effective agribusiness value chains that will supply
adequate food. This will involve improving the production and marketing system
as well as capacity for income generation among resource-poor farmers (Anyaegbunam,
Okoye, Asumugha, Ogbonna, Madu, Nwakor and. Ejechi, 2010).
Market orientation
philosophy is a dynamic and an efficient
way of increasing and enhancing productivity in the entire sector. Market
orientation practices can aid globalization (Idachaba, 2000). Market oriented
production in practice can respond adequately to the needs of the domestic
economy, increase market shares of all world export markets and ward off
competition from imports of agricultural products. This is true because efficient market oriented
production in practice could guide farmers towards new productivity opportunities
such as crops with high productivity potential, incorporating varieties and
initiation of programmes that will reduce crop failure; encourage adoption of
modern and better practices and improvement in response to demand and price
changes; create and stimulate new demand by improving and transforming farm
produce into different varieties which are attractive and convenient to the
consumers.
The dynamic functions
of market orientation is an efficient way of increasing and enhancing
productivity in crop production, especially root and tuber crops. This is believed
to be cultivated by the bulk of farmers in the South Eastern States.
Thereafter, it should be of concern to all development economists and
agriculturists in the area. These root and tuber crops have contributed greatly
to welfare of farmers and consumers in Southeast agro ecological zone.There is
the need to shift to the commercialization of these high valued crops.
Commercial transformation of subsistence farmers may not instantly move on to
high valued crops. Most times, increased market orientation of staple crops
(cassava, yam, cocoyam, sweet potato and potato) production offers a more
pertinent option to small holders at least in the short and medium terms until
infrastructural facilities are developed to accompany the production,
processing, transportation and marketing of high value crops. (Andrew and Anna,
2006). Household consumption and production of root and tuber crops have been
on the increase in Nigeria (Onuoha, 2007). This implies that there is need for
further improvement in the production and marketing of these crops.
However, the need
for cash sometimes pushes most farmers to sell almost all their crops in the
market not because the output is in excess, but for the need of money (Adejobi
and Babatunde,2010). Producing, processing, sale and consumption of root and
tuber crops is common in southeast zone, Nigeria.
Having in mind the
changes in the share of food consumed by the rural farming households from the
market in the face of changing socio-economic environment in which they operate
is very important for several reasons (Adejobi and Babatunde, 2010). It enables
us to see how rural farming households have been able to meet substantial parts
of their home consumption of food. However, the much of own food produced by
subsistence farmers alone, affects social, economic and political environments
in the country (Onubuogu and Onyeneke, 2012).
1.2 STATEMENT
OF THE PROBLEM
There are
comparatively, few publications that have addressed the level of market
orientation of root and tuber crops in Nigeria. In southeast zone, little empirical
evidence exists pertaining to the level of market orientation of root and tuber
crop farmers, market orientation strategies, the determinants, the relationship
between market orientation and post-harvest losses and the constraints to market
orientation in root and tuber crop production.
Waste arising from post-harvest losses of root
and tuber crops are unavoidable and leaves a wide gap in market orientation of
root and tuber crops because they are important food security crops for approximately
700 million people (Gratitude, 2014). However, losses after harvesting and
during processing can be as high as 60% in the case of yam, 30% for cassava and
20% in cocoyam.These are not only detrimental to food security and the
environment but also mean that opportunities to increase the value generated
from these crops are lost.
Several factors affect market orientation of
households thus affecting the conditions of commodity supply and demand, output
prices, credit availability, income received by farmers, traders and other
market factors (Pender, 2006). In some other studies especially in East Africa such
as Gebremendhin and Hoekstra, (2009); Gebremedhin and Hoekstra, (2007), market
orientation is modelled as a function of household demographic factor (age, and
sex of head, household size, child dependents), human capital (education and
labour supply) physical capital (land, oxen ownership, livestock),
institutional support services (access to extension, credit, and market
information). Market access (distance to nearest market, distance to distinct
town market) and village level factors population density, rainfall and
agricultural labour wage. In Nigeria, and
especially in southeast, empirical evidence remains largely scanty, isolated
and devoid of in-depth analysis of the socio-economic determinants of market
orientation among farmers. This has caused a void in research and literature.
1.3
Research Questions
i.
What
are the socio-economic characteristics of the respondents?
ii.
What
are the market orientation strategies of root and tuber crop farmers?
iii.
What
are the levels of market orientation of root and tuber crop producing
households?
iv.
What
are the determinants of market orientation among smallholder root and
tuber
crop farmers in South east, Nigeria?
v.
What
is the relationship between root and tuber crops postharvest losses and market
orientation.
vi.
What
are the constraints militating against market orientation of root and tuber
crop in the study area?
1.4 Objectives of
the Study
The broad
objective of this study is to analyze market orientation among root and tuber
crops producing households in southeast agro ecological zone.
However, the
specific objectives will be to:
i.
examine
the socio-economic characteristics of root and tuber crops producing households
in the study area;
ii.
ascertain
the market orientation strategies of root and tuber crop farmers;
iii.
analyze
the level of market orientation of root and tuber crop production in the study
area;
iv.
estimate
the determinants of market orientation among root and tuber crop farmers in the
study area
v.
determine
the relationship between postharvest losses and market orientation of root band
tuber crops;
vi.
identify
the constraints militating against market orientation of root and tuber crop
production in the study area.
1.5
Research Hypotheses
The null
hypotheses tested are:
H01: distance, household size, and gender do not significantly
affect market orientation.
H02: Market
orientation and postharvest losses on roots and tubers are not significantly
related.
1.6 Justification of the Study
The role of market
orientation in agricultural and market development cannot be overemphasized. Southeast
agro-ecological zone of Nigeria produces and markets root and tuber crops. The
growing utilization of root and tuber crops in the expanding markets depends
critically on price competitiveness relative to other commodities.
However, the
taste, preferences and satisfaction of the consumer is required as a basic
production and marketing objective. It is on this background that the study is
aimed at contributing to the body of knowledge by investigating on the market
orientation of root and tuber crops in southeast zone. The recommendations
based on the findings of the study will serve as a guideline for policy makers
and marketing agencies in their operations, research institutions, researchers
and students as basis for further research, as well as provide information to
farmers, marketers and agricultural co-operatives.
1.7
Scope of the Study
The study covers
households who engage in the production and marketing of root and tuber crops
(Cassava, Yam and Cocoyam), using the household characteristics, markets and
institutional variables of root and tuber crop production and marketing
households in the study area.
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