ABSTRACT
This study examined the market orientation and participation of smallholder cassava agripreneurs in Abia State, Nigeria. The specific objectives were to describe the socio-economic profile of the cassava agripreneurs’, examine cassava agripreneurs’ market orientation and participation, estimate the determinnants of cassava agripreneurs’ market orientation and participation, examine the performance of cassava agripreneurs’, and examine the challenges faced by the cassava agripreneurs’. The study made use of multi-stage sampling techniques in selecting 120 respondents for the study. Data were collected through a well-structured questionnaire and analyzed with descriptive statistics (mean, frequency and percentage), market orientation and participation index, multiple regression, and net return analysis. The result of the descriptive statistics showed that most (60%) of the cassava agripreneurs were males, agripreneurs within the age bracket of 41-50 years participated more (65%), while most (75%) of the agripreneurs were married. Also, most (55%) of the respondents’ household size was between 4-6, and 67.5% of the respondents belonged to a cooperative society, while most (67.5) of the agripreneurs has secondary as their level of education. Moreso, most (45%) of the respondents had 11-15 years of experience in market participation. Most agripreneurs (60%) had farm size of 0.1-1hectare, while most (71.67%) had access to market information. The result of the market participation index showed that 97.78% of the cassava products were highly commercialized, while the market orientation index of 0.82 indicates that the agripreneurs had high level of market orientation. The regression result for market participation index showed that labor, education, technology, credit, and market information were all directly related to market participation and significant at 1%. Experience, selling price and capital were positively signed, and significant at 5%, while gender and income were negatively signed with 5% and 10% levels of significant respectively. The regression result for market orientation index showed income, experience, labor, technology, gender, and credit were all directly related to market orientation and significant at 1%, while education, and market information were positively signed and both significant at 5%. Distance to market, and age were negatively related to market orientation and significant at 10% and 1% respectively. The net-return analysis result showed that on the average, a cassava agripreneur makes ₦997,158.63 profit for a production season, while the mean rating from the four-point likert scale result indicated that lack of infrastructure (2.58), lack of suitable planting equipment (2.68), low capital base (2.65), lack of technical expertise (2.71), and lack of mechanization/power (2.63) were accepted as a major challenge faced by the cassava agripreneurs as the mean scores for these challenges were above 2.50. The study concluded that a market-oriented approach and active participation will empower smallholder cassava agripreneurs to unlock their full potential, contribute to local economic development, and play a vital role in driving the growth of the cassava industry on a broader scale. Therefore, the study recommends that youths and households are encouraged to participate in the business. This is because; cassava is a high-yielding crop, which obviously generates profit for farmers.
TABLE
OF CONTENTS
Cover page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of Contents vi
List of Tables ix
Abstract x
CHAPTER 1: INTRODUCTION
1.1 Background to the Study 1
1.2 Problem Statement 3
1.3 Research Questions 5
1.4 Objective of the Study 5
1.5 Research Hypotheses 6
1.6 Justification of the Study 6
CHAPTER 2: REVIEW OF RELATED LITERATURE
2.1 Conceptual Review 8
2.1.1 Concept of market orientation 8
2.1.2 Concept of market participation 9
2.1.3 Concept of small holder
farmers 12
2.1.4 General information
on cassava (Manihot Esculenta Crantz)
13
2.1.5 Economic importance
and uses of cassava 14
2.2 Theoretical Framework 16
2.2.1 Market oriented
theory 16
2.2.2 Social change theory 19
2.2.3 Location theory 20
2.2.4 Theory of reasoned
action 22
2.2.5 Engel, Kollat,
Blackwell (EKB) model 25
2.2.6 Consumer demand theory 26
2.3 Empirical Framework 28
2.4 Analytical Framework 35
2.4.1 Descriptive statistics 35
2.4.2 Market participation 36
2.4.2.2 Market orientation 38
2.4.3 Regression analysis 39
2.4.4 Net return 42
2.4.5 Four-point rating scale 44
CHAPTER 3: METHODOLOGY
3.1 Study Area 46
3.2 Sampling Technique 47
3.3 Method of Data
Collection 48
3.4 Method of Data
Analysis 48
3.5 Model Specification 48
3.5.1 Market participation 48
3.5.2 Market orientation 48
3.5.3 OLS multiple regression
model 49
3.5.4 Net return analysis 50
3.5.5 Four-point rating scale 50
CHAPTER 4: RESULTS AND DISCUSSION
4.1 Socio-economic
Characteristics of Respondents 52
4.2 Level of Cassava
Agripreneurs’ Market Orientation and Participation 56
4.2.1 Level of market participation 56
4.2.2 Level of market orientation 56
4.3 Determinants of Market
Participation and Orientation 57
4.3.1 Determinants of
market participation 57
4.3.2 Determinants of
market orientation 62
4.4 Performance of the
Cassava Agripreneurs 66
4.5 Challenges faced by the Cassava Agripreneurs 67
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1
Summary 69
5.2
Conclusion 70
5.3
Recommendations 71
Reference
LIST OF TABLES
3.1 Distribution
of Respondents by Proportionate Sampling 47
4.1 Distribution of
Respondents by their Socio-economic Characteristics 52
4.2 Level of Market
Participation 56
4.3 Determinants of Market
Participation 58
4.4 Determinants of Market
Orientation 63
4.5 Net Return Analysis of
Cassava Agripreneurs 66
4.6 Challenges faced by
the Cassava Agripreneurs 67
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Market
orientation is an agribusiness marketing strategy that focuses on recognizing
consumer requirements and preferences with the view of meeting them (Cadogan et al., 2002; Shim et al., 2018). Market orientation is a business philosophy that
emphasizes on identifying and meeting consumer needs and desires. It involves
aligning product development, marketing, and other business activities with the
demands of customers and the dynamics of the market. Recent research shows that
agripreneurs should pursue market orientation to gain long-term competitive
advantages through market participation (Saleh et al., 2021). An agripreneurs' capacity to participate in a market
successfully and efficiently is referred to as "market
participation." It is the active involvement of producers, suppliers, and
other stakeholders in the market ecosystem. It encompasses various activities
such as production, distribution, promotion, and sales aimed at effectively
reaching and satisfying customers within the target market. In the context of
cassava, market orientation involves understanding the preferences of consumers
and adapting cassava products accordingly, while market participation involves
ensuring that cassava producers, processors and traders have the necessary
resources, information, and infrastructure to bring their products to market
efficiently, thereby contributing to economic growth and improved livelihoods
within the cassava value chain. By participating in the market, agripreneurs
becomes an active actor in the value chain of any agricultural product (Kyaw et al., 2018; Adino et al., 2021). It has been estimated that about 90% of smallholder
farmers in West Africa cultivate cassava (Manihot
esculenta Crantz) as a staple crop, making it a critical product for
agripreneurs (Sanni et al., 2009;
Ojiakor et al., 2017; Ikuemonisan et al., 2020). There are numerous ways
in which agripreneurs can utilize cassava as a source of food, feed, and raw
material. Cassava is grown by 98% of smallholder crop farmers in Abia State,
which means that most of the state's agripreneurs relies heavily on the crop (Apu
and Oragwam, 2009; Onyebinama and Onyejelem, 2010; Udensi et al., 2011; Onya et al.,
2016). The socio-economic conditions of the cassava agripreneurs are
significantly dependent on their market orientation and ability to participate
in the market actively (Onya et al.,
2016).
Cassava
agripreneurs in Abia State face conditions that limit their socio-economic
well-being; for example, most cannot afford to hire professional labour,
sufficient experience and lack the basic infrastructure that will improve their
market orientation and participation for increased wealth creation (Nwakor et al., 2011; Ukeje et al., 2017; Osuji et al.,
2019). In addition, most agripreneurs in the study area are resource-poor
because of their limited access to technical education, income, land,
equipment, which has disadvantaged them from going into commercial farming and
industrial processing (Ikuemonisana and Adenegan, 2020; Agbeze et al., 2020; Obayelu et al., 2021). Critically, cassava
agripreneurs face the challenge of credit access, utilization, and repayment
(Onwusiribe et al., 2015; Abasilim et al., 2019). Therefore, the interest
rate and credit worthiness of agripreneurs and other socio-economic concerns
affect the ability of cassava agripreneurs to improve their market orientation
and participate actively in the market (Achoja, 2020; Pang et al., 2020).
The majority
of cassava agripreneurs are active participants in the cassava value chain and
market (James et al., 2011; Madu et al., 2018). Agripreneurs are involved
in cassava farming, seedling and stem production, root processing and value
addition, distribution, and supply. Agripreneurs ensure that there is enough
production to meet market demand. Some agripreneurs, particularly in developed
economies, engage in contract cassava production. Cassava agripreneurs
aggregate smallholder cassava farmers' output, thereby creating a market for
them. Agripreneurs bridge the market gap between farmers, manufacturers, and
end-users. Agripreneurs must have a fully developed market orientation to
explore their potential in the cassava value chain. The development of market
orientation and participation of cassava agripreneurs are critical for their
sustainability and profitability (Avlonitis. and Gounaris, 1999).
The firm and
market-specific conditions required for their performance determine cassava
agripreneurs market orientation and participation (Avlonitis and Gounaris,
1999). The market-specific determinants consider customer need, demand and
supply forces, price, market size, market information, decision-making, and
competition (Na et al., 2019). In
addition, product quality, management, marketing strategies, production risk,
value chain, government regulations, labour size, and other firm-specific
factors influence cassava agripreneurs market orientation and participation
(Powpaka, 1998). With this background information, it is possible to examine
the market orientation and participation of cassava agripreneurs in Abia State,
Nigeria.
1.2 PROBLEM STATEMENT
Market
orientation involves understanding the preferences of consumers and adapting
cassava products accordingly. Market participation on the other hand is
ensuring that cassava producers, processors and traders have the necessary
resources, information, and infrastructure to bring their products to market
efficiently, thereby contributing to economic growth and improved livelihoods
within the cassava value chain.
The issue of
limited access to credit and production inputs is a significant challenge for cassava
agripreneurs, as they struggle to find adequate capital to finance their
investments and maintain healthy working capital to improve their market
orientation (Christopher et al., 2019).
According to
some researchers, lack of infrastructure, insufficient land preparation or land
tenure system, lack of suitable planting materials and equipment, lack of mechanization
and power, soil infertility, and land pressure are among the most commonly
reported constraints to the production of cassava products for the market
(Pingali and Rosegran, 1995; Sam and Dappah, 2009; Otsuka and Place, 2014).
The cassava agripreneurship landscape is marked by
various dimensions encompassing socio-economic characteristics, factors influencing
market engagement, the impact on an agripreneurs performance, and challenges
faced by agripreneurs involved in cassava production. However, there exists a
gap in comprehensive understanding and analysis of these factors, hindering the
development of effective strategies and policies to promote sustainable cassava
agribusiness. Therefore, there is a pressing need for an in-depth investigation
to bridge this gap and provide actionable insights for policymakers,
researchers, and practitioners in the agricultural sector.
Based on the socio-economic and other
constraints that limit market participation and orientation of cassava
agripreneurs, it is critical to analyze the market orientation and
participation of cassava agripreneurs in Abia State, Nigeria.
1.3
RESEARCH QUESTIONS
i. What are the socio-economic
characteristics of cassava agripresneurs?
ii. What are the threshold of market
participation and market orientation of cassava agripreneurs?
iii. What are the determinants of cassava
agripreneurs’ market participation and orientation?
iv. How does agripreneurs involvement in
the market affect the performance of cassava enterprises?
v. What are the challenges that cassava
agripreneurs face in market participation?
1.4 OBJECTIVE OF THE STUDY
The broad
objective of this study was to analyze the market orientation and participation
of cassava agripreneurs in Abia State, Nigeria. The specific objectives are to:
i. describe the socio-economic profile
of the cassava agripreneurs;
ii. examine cassava agripreneurs' market
orientation and participation;
iii. estimate the determinants of cassava
agripreneurs market orientation and participation;
iv. examine the performance of cassava
agripreneurs;
v. examine the challenges faced by the cassava
agripreneurs.
1.5 RESEARCH HYPOTHESES
Ho1: income,
experience, labour, education of agripreneur, technology, gender of
agripreneur, age of agripreneur, selling price,
distance to market, access to credit, access to market information, and capital
have no significant impact on market orientation of the cassava agripreneurs
Ho2: income,
experience, labour, education of agripreneur, technology, gender of
agripreneur, age of agripreneur, selling price,
distance to market, access to credit, access to market information, and capital
have no significant impact on market participation of the cassava agripreneurs
Ho3: lack of
infrastructure, insufficient land preparation, lack of suitable planting
materials and equipment, low capital base, lack of technical expertise, lack of
mechanization and power, and soil infertility, are not significant constraints
to the market orientation of the cassava agripreneurs
Ho4: lack of
infrastructure, insufficient land preparation, lack of suitable planting
materials and equipment, low capital base, lack of technical expertise, lack of
mechanization and power, and soil infertility are not significant constraints
to the market participation of the cassava agripreneurs
1.6 JUSTIFICATION OF THE STUDY
Many development economists and policymakers stress
market-driven growth. Agricultural food marketing is a crucial factor in
agricultural growth and development. In most developing countries, boosting
agricultural output requires raising farmer productivity, which cannot be
achieved without markets that successfully bind thousands of widely distributed
producers into an integrated national economy. As a result, an effective
agricultural marketing system is critical to development. Increased market
engagement by smallholder producers can increase their income and level of
living by stimulating surplus production.
Participation in the output market has also been
linked to development. Open markets allow enterprises to sell surplus output,
raise income, and purchase other goods and services. As a result, more affluent
poor enterprises want more goods and services, stimulating growth. Increasing
agricultural GDP and diversifying economic activity away from the oil industry
are key objectives of many governments in Nigeria.
Adding value to raw materials is one strategy to
support agricultural expansion. However, increasing cassava production area and
yield without sufficient storage facilities and connecting businesses to the
market may hinder cassava growth.
The findings of this study will help policymakers
establish and implement strategies to promote young entrepreneurs marketing of
cassava products, empower smallholder cassava agripreneurs to unlock their full
potential, contribute to local economic development, and play a vital role in
driving the growth of the cassava industry on a broader scale. It will also aid
academics and researchers
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