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EFFECT OF USE OF ROAD TRANSPORTATION ON MARKETING OF AGRICULTURAL PRODUCE AMONG RURAL FARMERS IN IMO STATE NIGERIA

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Product Code: 00009249

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ABSTRACT


The study assessed the effect of use of road transportation on marketing of agricultural produce among rural farmers in Imo State, Nigeria. Multi-stage sampling procedure was used in sampling 180 respondents for the study. Data for the study were collected with the use of structured questionnaire and analyzed with IBM software SPSS version 20 statistics package. The result showed that the majority (62.2%), had mean age of 39 years, 82.8% were married, had household size of 8 persons, had mean household size of 1 hectare, about 46.7% had primary education and earned mean monthly income of N142,000. The result further revealed that motorcycle (54.4%) was the major mode of transportation used in marketing agricultural produce in the study area. The result also revealed that the respondents to a high extent utilized motorcycle ( =3.89), keke ( =3.28) and bicycle ( =3.11) for the transportation of agricultural produce in the study area. The result on the perceived effect of the use of road transportation on agricultural marketing revealed a grand mean of 3.31 affirming that road transportation modes had positive effect on marketing of agricultural produce in the study area. The result equally revealed that the constraints associated to the use of road transportation in the marketing of agricultural produce were bad roads (81.1%), high cost of transportation (80.0%), illiteracy (72.8%) and perishability of agro-produce (55.0%). The result for hypothesis one showed that coefficients of age (5%), marital status (5%), education (1%), household size (1%), farm size (1%) and income (1%) were the determinants of the extent of use of modes of transportation in the study area. The result of hypothesis two revealed that use of road transportation modes had positive and significant influence on agricultural marketing at 1% alpha level. The study concluded that the extent of use of modes of transportation was an influential factor in the marketability of agricultural products. The study recommended that motorable roads should be constructed between farm gates and markets to enable easy access to the markets.





TABLE OF CONTENTS


Title Page                                                                                                             i

Certification                                                                                               ii

Declaration                                                                                                iii

Dedication                                                                                                 iv

Acknowledgments                                                                                      v

Table of Contents                                                                                                   vii

List of Tables                                                                                                        xi

List of Figure                                                                                                       xii

Abstract                                                                                                   xiii


CHAPTER 1: INTRODUCTION                                                                                     

1.1 Background of the Study                                                                                                           1

1.2 Problem Statement                                                                                                    5

1.3 Research Questions                                                                                                    7

1.4 Objectives of the Study                                                                                                           8

1.5 Hypothesis                                                                                                  8

1.6 Justification of the Study                                                                                                           9

1.7 Definition of Terms                                                                                                          9


CHAPTER 2: LITERATURE REVIEW

2.1 Concept of Rural Road Transportation                                                                                                               11

2.2 Rural Transportation Problem in Nigeria                                                                                                                                       15

2.3 Road Transportation Network Pattern                                                                                                                           17

2.4 Road Transportation and Property Value                                                                                                                             21

2.5 Road Transportation and Accessibility                                                                                                                 23

2.6 Patterns of Road Transportation Network and Marketing Property Values                                                                                                       26

2.7 Road Transportation Network Classification and Analytical Measures                                                                                                   29

2.8 Rural Road Transportation Interventions and Poverty Reduction                                                                                                 30

2.9 Agricultural Marketing                                                                                                                   34

2.10 Agricultural Marketing in Nigeria                                                                                                      37

2.11 Agricultural Market Reforms Necessary in Nigeria                                                                                                      37

2.12 Major Problems of Agricultural Marketing in Nigeria                                                                                                                   39

2.13 Measures that could Reflect an Improved Agricultural Marketing System                                                                                                      46

2.14 Types of Agricultural Markets                                                                                                     49

2.15 Marketing of Agricultural Products                                                                                                    51

2.16 Distribution of Agricultural Produce                                                                                                     52

2.17 The Role of Agriculture in Nigerian’s Economy                                                                                                   53

2.18 Road Transportation System in Imo State Nigeria                                                                                                      55

2.19 Importance of Road Transportation on Agricultural Marketing                                                                                                 55

2.20 Effect of Road Transportation to Agricultural Marketing                                                                                                 58

2.21 Models of Road Transportation Classification and Hierarchy                                                                                                  59

2.22 Theoretical Framework                                                                                                60

2.22.1 Agglomeration economies and location theory                                                                                                        60

2.23 Conceptual Framework                                                                                                63

2.23.1 Independent variables                                                                                                   65

2.23.2 Dependent variables                                                                                                   65

2.23.3 Intervening variables                                                                                                   66

2.23.4 Outcome                                                                                                   66

2.23.5 Effect                                                                                                        66

CHAPTER 3: METHODOLOGY                                                                                    

3.1 Study Area                                                                                                          67

3.2 Sample and Sampling Procedure                                                                                                  68

3.4 Method of Data Collection                                                                                                 69

3.5 Validity of the Instrument                                                                                                 69

3.6 Test of Reliability of the Instrument                                                                                                 69

3.7 Method of Data Analysis                                                                                                    69

3.8 Multiple Regression Model                                                                                                        70

CHAPTER 4: RESULTS PRESENTATION AND DISCUSSION                                                                                             

4.1 Socio-Economic Characteristics of Agricultural Produce Marketers in the

        Study Area                                                                                                                       72

4.2 Modes of Road Transportation used in the Transportation of Agricultural Produce                                                                                                     78

4.3 Extent of Use of Road Transportation of Agricultural Produces                                                                                                   80

4.4 Perceived Effect of the Use of Road Transportation on Agricultural Marketing                                                                                                                   82

4.5 Constraints to Use of Road Transport in Marketing of Agricultural Produces                                                                                                   83

4.6 Test of Hypotheses                                                                                               85


CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary                                                                                                  92

5.2 Conclusion                                                                                                94

5.3 Recommendations                                                                                    94

References                                                                                                                    96

Appendices


 





LIST OF TABLES

4.1: Socio-Economic Characteristics                                                                                          74

4.2: Mode of Transportation of Agricultural Produces                                                                                                   78

4.3: Extent of Usage of Different Modes of Transportation of

Agricultural Produces                                                                                            80

 

4.4: Perceived Effect of Road Transportation on Marketing of

Agricultural Produce in the Study Area                                                                                                   82

4.5: Constraints to Road Transportation on Agricultural Produces for

Marketing                                                                                              84

4.6: Relationship between the Socio-Economic Characteristics of the

        Respondents and Extent of used Road Transportation Marketing of

        Agricultural Product.                                                                                             86

4.7: Simple Regression Analysis on the Influence of use of Road

Transportation on Marketing of Agricultural Produces in the

Study Area.                                                                                                  90


 






LIST OF FIGURE

1:         Conceptual Framework of the Effect of use of Road Transportation on

            Marketing of Agricultural Produce among Rural Farmers in

            Imo Sate, Nigeria.         64


 


 

 

 

 

 

CHAPTER 1

INTRODUCTION


1.1 BACKGROUND OF THE STUDY

Road transportation plays an important role in agricultural development (Ajiboye, 2007). This is because it is the major means of transporting agricultural produce from the farms to the markets as well as to various urban communities for marketing purposes (Ajiboye, 2007). Road transportation is regarded as an important factor involved in agricultural development all over the world (World Bank, 2012). It is the only means by which food produced at farm site is moved to different homes as well as markets. According to Filani (2005) road transportation creates market for agricultural produce, enhances interaction among geographical and economic regions and opens up new areas to economic focus.

However World Bank (2012) asserted that for any development to take place, road transportation plays a crucial role. Ogunsanya (2009) observed that there are three types of routes in the rural areas. These are bush paths, unsurfaced rural roads and surfaced rural roads. However, the bush path is very common but the least developed of all the routes (Ogunsanya, 2009). Bush paths link villages with farmsteads and they are usually narrowed, winding and sometimes over grown by weeds especially during the rainy season (Aderamo and Magaji, 2010).

In a study carried out by Filani (2005) in rural areas of Nigeria, it was found that where motorable roads exist they are mostly of unpaved surface, narrow width, circuitous alignment and with low quality bridges. In most cases, they are either clad with potholes or characterized by depressions and sagging. Such unsurfaced roads are hardly passable during the rainy season when vehicles get stuck in mud or when the improvised bridges of cut-tree trunks get swept away by flood (Filani, 2005).

 In another study carried out by Ogunsanya (2008) on relationship between transportation, underdevelopment and rurality, he observed that the greater the degree of rurality, the lower the level of road transportation development. Aderamo and Magaji (2010) noted that road transportation constitutes the main avenue through which different parts of the society are linked together. Aloba (2008) cited by Ajiboye and Afolayan (2009) noted that road transportation is the most common and complex network. It covers a wide range, physically convenient, highly flexible and usually the most operationally suitable and readily available means of movement of agricultural produce for marketing over short, medium and long distances (Ajiboye and Afolayan, 2009).

According to Ajiboye (2007), availability of road transportation facilities is a critical investment factor that stimulates economic growth through increased accessibility. Paul et al., (2009) pointed out that the impacts of road transportation on agricultural produce for marketing are particularly important in Sub-Saharan Africa for three reasons. First, the agricultural sector accounts for a large share of gross domestic product (GDP) in most Sub-Saharan countries (Paul et al., 2009). Second, poverty is concentrated in rural areas. Finally, the relatively low levels of road transportation infrastructure and long average travel time result in high transaction costs for marketing of agricultural produce and this limits agricultural productivity and growth (Paul et al., 2009).

According to Mabogunje (2008), some of the variables that determine the level of development in a given environment are easy accessibility and mobility. Road transportation affects agricultural marketing because it is the only means by which rural farmers can transport their produce to the market. Poor road transportation in the rural areas has resulted in low productivity, low income and a fall in the standard of living of rural farmers and high rate of poverty (Aloba, 2008). When the distance of farm to the market is far and the road is rough, perishable crops may be destroyed and the rural farmers may run at a loss (Aloba, 2008).

According to Vaughan (2007), basic economic theory production is never complete until what produced gets to the final consumers, and it is only through transportation that this objective can be effectively achieved. Transportation in relation to agricultural marketing is mainly by road in which the vehicular traffic consists of cars, Lorries, buses, tippers etc, and sea which consist of canoes and boats (Stratton, 2008).  Also pedestrian traffic and by head are not entirely excluded, but are mainly used for short distance market within the rural areas (Richmond, 2009).

However, Picket and Perrett (2010), asserted that this mode of transportation is mostly applicable to some agricultural products which require movement only over short distance to and from market places between adjoining villages and nearby town. Also a slow and inefficient mode of transportation, commonly called head portage, was the oldest in the system but was largely made possible by the existence of bush paths which were not conducive for vehicles and bicycles as means of road transportation for agricultural produce.

Similar views were also held by Tischendorf and Fahrig (2009) as observed in the role of government in food and agricultural production. That apart from the poor conditions of the roads, all forms of carrier services, lorries, boats and trains are inadequate and ill-equipped to meet up with such cases. Transportation charges are not fixed (Ambrose, 2005). They vary with the condition of road, type of produce and season of the year. However Balchin et al., (2006) observed that there is complete lack of regulation and standardization of the carrier trade especially with regards to agricultural marketing, a distinction between passenger in one, and goods and services on the other. In their assertions, Olayiwola et al., (2005) expressed that Lorry owners refuse to carry foodstuffs but accept passengers, and in cases they accept to carry food stuffs, the rate are exploitative and highly variable. Beside the inadequacies, road network services are inefficiently executed.

However, Smith and Skinner (2002) noted that the primary requirement of an efficient agricultural marketing transportation service is not only that cost to the cost to the users be lowest, but also that goods be moved quickly with a little delay as possible and recommended. Also that rural road should be provided since they are very essential for the prompt evacuation of produce from farms to market places. Taylor (2009) in recognition of the inputs of road transportation system to agricultural marketing observed that construction of rural road may induce an immediate response in improved agricultural output.  However, these results according to Hay (2007) can only be expected when a road is built through a fertile area inhabited by enterprising. However, there are many examples of roads that were built under less favourable condition which have led to little or no appreciable increase in agricultural output. For example where there is an absence of mark, or of inputs necessary to increase production, these factors individually or in combination will limit the development impacts of better access (Lean and Goddall, 2007).

According to Pred (2006) in terms of agricultural marketing, present state of road transportation network is poor and does not encourage increased agricultural production. The services make the transportation of agricultural products from the rural farms to the areas of need difficult (Oni, 2008). It also encourages waste of rural farmers’ time and money (Sing, 2005).

Garrison and Marble (2009) observed that the role of motorable feed road is directly linked to the amount of agricultural marketable surplus that can reach the market. However, Ajiboye and Afolayan (2009) observed that though the Nigeria rural farmers still consume an appreciable amount of their produce, the amount that could reach the markets from individual rural farmers is determined by the mode of road transportation.


1.2 PROBLEM STATEMENT

In Imo state, roads transportation constitute perhaps, the most important infrastructure in the transportation of her agricultural produce (Ajaero, 2011). The present condition or state of roads in Imo State especially in rural area of the state are in disorder and has really done a lot of havoc to the entire populace, ranging from hike in road transportation fares, frequent breakdown of vehicles on the roads, armed robbery attacks, hampering marketing of agricultural products to mention but a few (Ajaero, 2011). Rural farmers in Imo state are really suffering from these poor road connection and breakdowns in their domain, which has resulted to loss over 20% to 30% of the farm produce due to these bad road conditions (Paul et al., 2009).

This condition of road transportation has frustrated rural development efforts in the area and has resulted in series of challenges such as cutting off of many rural areas from neighbouring rural areas and larger settlements from which they could not access other socio-economic services which has resulted in low productivity, low income and fall in standard of living of rural dwellers and high rate of poverty (Paul et al., 2009). Also this problem of rural road transportation in Imo State has resulted to high transportation charges which vary with the conditions of roads, types of produce and seasons of the year (Anyadike, 2009). It has also prevented rural farmers in Imo State in specializing in the crops that offer them the best return for marketing (Anyadike, 2009). Where rural road transportation is inadequate rural farmers’ attempts to keep their family supplies with all their needs and they therefore retain more foods than they actually need. This is because if they run short it will be difficult to tap other resources and this entails higher loss as a result of poor rural road transportation. This according to Ajiboye and Afolayan (2009) often poses a problem because urban dwellers will be faced with dearth of food stuffs and other essential goods manufactured from agricultural materials. These problems that confronts road transportation in Imo state, therefore hinders its ability to improve the system of agricultural marketing.

According to Aderamo and Magaji (2010), if agriculture is to respond to the growing demand then it will be necessary to evolve a good progressive rural structure with rural roads to expedite and reduce the cost of flow of agricultural commodities, information and all sorts of rural services to enable it contribute meaningfully to generate economic growth through agricultural marketing. This as observed by Filani (2005) will help accommodate increased traffic flows in both directions, inputs moving from the urban areas to farms and output in the opposite directions. The task involves very large additions to rural roads mode and maintaining existing rural roads.

Recently, most government policies and efforts towards agricultural development are geared towards provision of agricultural inputs such as improved varieties, agrochemicals, fertilizers, finance among others. What happens to the products after bumper harvest has never received government attention. How the farmers transport their products from the farm gate to their houses and markets (local or regional markets) seem to have received little or no attention from the agricultural stakeholders. There seem to exist dearth of data on the effects of road transportation on agricultural marketing among rural farmers in Imo State. It is therefore against this background that an attempt was made to carry out this study. 


1.3  RESEARCH QUESTIONS

This study was guided by the following research questions:

1.     What are the different modes of road transportation used in evacuation of agricultural produce in the study area?

2.     To what extent do farmers use this road transportation in the marketing of agricultural produce?

3.     What is the perceived effect of road transportation on the marketing of agricultural produce in the study area?

4.     What constraints limit effective marketing of agricultural produces in the study area?

 

 

1.4   OBJECTIVES OF THE STUDY

The broad objective of the study was to assess the effect of the use of road transportation on marketing of agricultural produce among rural farmers in Imo State Nigeria. The specific objectives were to:

1.     ascertain different modes of road transportation used in transporting agricultural produce;

2.     ascertain the extent of farmers use of these modes of transportation in the marketing of agricultural produce;

3.     ascertain the perceived effect of road transportation on the marketing of agricultural produce;

4.     identify constraints to use of road transportation in the marketing of agricultural produces in the study area.


1.5  HYPOTHESES

H01: There is no significant relationship between the socio-economic characteristics of the respondents on transportation channel adopted for marketing of agricultural produce in the study area.

H02: There is no significant relationship between use of road transportation and marketing of agricultural produces in the study area.


1.6   JUSTIFICATION OF THE STUDY

The justification of this study is due to the gainful and developmental inputs agriculture can make to the economy and most importantly to the tremendous role of road transportation on agricultural marketing on regional economies.  This is because road transportation as well as agricultural marketing are usually regarded as closely related since each of them influences the fortunes and relative rate of growth of other facets of the economy.

The justification of the study is further highlighted considering that in Nigeria, the road is the mode of transportation by which all the states (most inclusively rural to urban areas) of federation are linked especially with regards to the movement and distribution of agricultural products from various rural areas of production to the different urban areas of the states where they are sold or marketed for consumption (i.e. agricultural marketing).

Finally, the study shall also serve as a stimulant or reference guide for further research in this area especially in this era of population explosion and impending food shortage.


1.7 DEFINITION OF TERMS

1)    Agriculture: This is the science or art that involves all activities directed towards food production.

2)    Farming: These are activities that are directed towards the cultivation of agricultural products towards satisfying needs and wants.

3)    Market: A set of people and organization with latent or manifest needs to satisfy the money to spend and the willingness to spend it on need satisfying goods and services either now or in the foreseeable future.

4)    Retailer: A business fellow whose sales come primarily from retailing.

5)    Industrial products: Products bought by individuals and organizations for further processing for use in conducting business.

6)    Agricultural marketing: This is the performance of all business activities involved in the flow of agricultural products and services from the point of initial agricultural production until they are in the hands of the consumer. It involves the application of the knowledge of marketing to the formulation, implementation and control of activities which are directly or related to agriculture.

7)    Agent: A wholesaler who represents buyers and sellers on relatively permanent basis and performs only a few functions and also does not take title of goods.

8)    Consumers: They are individual groups and families that produce to meet their satisfaction.

9)    Consumer market: These are all the individuals and households who buy or acquire goods and services for personal consumption.


 

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