ABSTRACT
Physical distribution channels have created a great impact by bridging the gap between the producers and the final consumers. The inability of farmers to effectively reach out to distance markets and most final consumers with their agricultural products have resulted to waste of resources in Obowo local government area. The main objective of the study is to find how best to market agricultural products in the area. Primary and secondary data were collected through the use of questionnaire and documented materials respectively. The population of the study was 200 while the sample size was 133.Chi-square test statistics was used to test the hypotheses. Among the findings of the study; ineffective and high cost of transportation, lack of storage and basic infrastructure, delay in the distribution process hindered the marketing of agricultural products in the area. The researcher thus recommended the provision of basic infrastructure like accessible road, storage facilities and improved transport system among others to assist in improving the marketing of agricultural products in the area.
TABLE OF CONTENT
Title page i Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of content vi
List of table vii
Abstract viii
CHAPTER ONE: INTRODUCTION
1.1 Background of the study 1-2
1.2 Statement of the problem 3
1.3 Objectives of the study 4
1.4 Research Question 5
1.5 Research Hypotheses 5
1.6 Significance of the study 6
1.7 Scope of the study 6
1.8 Limitation of the study 7
SECTION TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 8-10
2.2 Review of related literature 11
2.2.1 Effect of lack of physical distribution facilities on agricultural products.11-12
2.2.2 How Delay in the Distribution Process Affects Distribution of Agricultural Products. 13-14
2.2.3 How Poor Road Transportation System Affects Distribution of Agricultural Products. 15
2.2.4 Nature and Importance of Physical Distribution. 16-17
2.2.5 Distribution Channel for consumer products. 18
2.2.6 Distribution of agricultural products in Nigeria. 19
2.2.7 Impact of Channel of Distribution on Agricultural Products. 20-25
2.2.8 Relevance of Agricultural Marketing in Nigeria. 26-27
2.2.9 Factors affecting agricultural marketing in Nigeria 28-31
2.2.10 Addressing problems that relates to agricultural marketing 32-34
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design 35
3.2 Area of Study 35
3.3 Method of Data Collection 36
3.3.1 Primary Data 36
3.3.2 Secondary Data 36
3.4 Population of the study 36
3.5 Sample Size Determination 36-37
3.6 Validity of the Study 37
3.7 Reliability of the Study 37
3.8 Method of Data Analysis 38
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION ON FIND
4.1 Data Presentation 39-44
4.2 Test of Hypotheses 45-47
4.3 Discussion of Finding 48
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings 49
5.2 Conclusion 50
5.3 Recommendation 50-51
Bibliography 52-54
Appendix II
LIST OF TABLES
Table 4.1.1: No of respondents 39 Table 4.1.2: Age of respondents 39
Table 4.1.3 Gender 40
Table 4.1.4 Level of Education 40
Table 4.1.5 Marital status 41
Table 4.1.6 Respondent opinion on how long they have worked and lived in OBOWO 41
Table 4.1.7 Lack of physical distribution facilities affects the distribution of agricultural products 42
Table 4.1.8 Delay in the distribution process causes spoilage to agricultural products 42
Table 4.1.9 Poor transportation system affects the distribution of agricultural products 43
Table 4.1.10 Distribution to be selected poses a problem to the farmers 44
Table 4.1.11 What are the factors that influence selection of distribution channels 44
CHAPTER ONE
INTRODUCTION
1.1 Background of the study;
A Channel of distribution is viewed as an independent organization involved in the process of making a product or service available for use or consumption by the consumer or business user. (kotler and Armstrong, 1999).
A Channel of distribution also known as the marketing channels, moves products and services from the producers to the consumers or to other businesses. Thus, channels of distribution consist of sets of independent organizations involved in making of products or services available for use or consumption (Blanco, 2000). This function of getting goods into the hands of consumers is often referred to as ‘distribution’. According to Aworden 1990, number of routes or networks of intermediaries through which products can get to the final users are known as the producers, retailers, wholesalers, agents, etc. thus, the first step in selecting a marketing channel of distribution is to determine the producers objectives as well as distribution need for the customer. Boone and Kurtz in 2004 defined marketing distribution channel as an organized system of marketing institution and their inter-relationships that promote the physical distribution and ownership of goods and services from producers to consumer or end user. Hence, (Kotler, 1994) in a similar way, defines physical distribution as it involves planning, implementing and controlling the physical flow of materials, final goods, and related information from the point of origin to the point of consumption to meet consumer requirement and satisfactorily.
Distribution channel however, plays major role in the marketing of agricultural goods such as yam tubers, cassava, tomatoes and all other perishable and non perishable goods. Williams in 1984 noted that distribution channels; give utility by moving goods from one place to another. Moreover by bringing goods to the place of consumption when needed, it brings time utility. Again by bringing the goods to the consumer in convenient shapes, units, size and packaging, it adds convenient value. Also, by making it possible for consumers to obtain goods at a price they are willing to pay and under the condition which brings satisfaction and ownership. Effective and efficient distribution is particularly essential in moving products from the point of production to the point of consumption depending on the nature.
Obowo L.G.A is located in the eastern part of Nigeria in Imo state .the local government area is housing about 19 autonomous communities as its headquarter is at Otoko.
The economic life of Obowo people is based on production of agricultural products. The chief occupation of the people is farming. Their cash crops include oil palm, groundnut, melon, maize, rice etc. Their food crops include yam, cassava, cocoyam, maize which are produced in large quantities. Various channels of distribution are used in Obowo local government area. Some farmers distribute their agricultural products directly to the consumer through selected markets while some use intermediaries.
1.2 Statement of the Problem
Physical distribution has impacted greatly in ensuring that goods and services are made available when and where they are desired and in safe condition. However, it explains the problem of getting the right quantity of the right product to the right time at the least cost possible. This problem has confronted distribution with meeting delivery due date and operating an efficient distribution system. Geographical imposed gap between producer and their potential consumers is providing time and space utility between these two parties (Bowersox and closs 1996).
In Obowo L.G.A, as the result of the continuous increase in the cost of transportation due to poor nature of our roads, high cost of vehicles and spare parts and currently in cost of petroleum products poses a serious problem to an effective coverage of territories in the distribution in the rural area of Obowo L.G.A.
Information problems, inadequate infrastructure and lack of information providers result in unavailability of information necessary for the distribution channels about buying and selling goods and accessing services. A major challenge is information asymmetries in which small farmers are unaware of commodities’ market prices and trends and see few options regarding when and where to sell their produce while those they trade with are better informed.
Educated naturally suffer greater problem developing the knowledge and skills to derive value from information.
Therefore appropriate strategies for efficient and effective distribution of these products are required in distributing agricultural products in Obowo L.G.A
1.3 Objectives of the Study
The general objective of the study is to examine the impact of physical distribution channels in the marketing of agricultural products;
However the specific objectives include, to:
i. Examine how lack of physical distribution facilities affects
the distribution of agricultural products.
ii. Examine how delay in the distribution process causes
spoilage of agricultural products.
iii. Examine how poor transportation system affects the distribution of agricultural product
1.4 Research Question
i. How does lack of physical distribution facilities affect the
distribution of agricultural products?
ii. How does delay in the distribution process causes spoilage
to agricultural products?
iii. How does poor transportation system affect the distribution of agricultural
products?
1.5 Research Hypotheses
Ho1. Lack of physical distribution facilities does not affects the
distribution of agricultural product.
Ho2. Delay in the distribution process causes spoilage to agricultural products.
Ho3. Poor transportation system affects the distribution of agricultural products.
1.6 Significance of the Study
This research (kotler, 2001) is of great benefit to farmers, firms, and the general public. To farmers, the study will help them have good insight to effective strategies for distribution of agricultural products. To firms, it will enable them strategize on the effective means to distribute their products to consumers. It will also help consumer of perishable agricultural products to have these products when and where they are needed at the time they are needed. And also educate the general public on the distribution process of agricultural products. Thus, this study will be of tremendous importance as it reveals the available distribution channels in Obowo L.G.A and how to effectively utilize them. It will also serve as a reference material to other researcher who may carryout similar work in the nearest future. It assist channel member to know how best to perform government, state, and federal government ministries and parastatals seeking information as regards marketing of perishable agricultural products.
1.7 Scope of the Study
This study is based on perishable and non-perishable agricultural products in Obowo L.G.A. information and data about “the impact of physical distribution channel in the marketing of agricultural product” is given only as related to this area.
1.8 Limitations of the Study
Perceived limitations to the study will include;
i. Financial constraint; due to the financial commitment involved in this research work made it extremely difficult to conduct the research in a wide scope area.
ii. Time constraint; the time range for the completion of this research work is quite short and this mean that the researcher will be working at a very lest rate to be able to meet the allotted time for the completion of the project.
iii. Material sourcing; the researcher would have loved to increase the scope of this research work but inadequate material and data on physical distribution of agricultural products are limited.
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