Determination of the integration of rice markets in enugu state, nigeria

Project Abstract

<p> This study was designed to determine the integration of rice markets in Enugu state.<br>Factors considered include socio-economic characteristics, existing market structure and<br>channels, integration of rice markets, structural factors that affect the integration of rice<br>markets and the problems affecting rice traders in the state. Forty wholesalers and forty<br>retailers were selected for the study. Primary data and secondary data were collected and<br>analyzed using descriptive statistics, co-integration analysis and market integration<br>function. There was a significant difference between mean return on capital employed by<br>enterprises that borrowed from formal and informal credit institutions, hence their<br>performances varied. It was recommended that Government and development partners<br>in the region should realize these changing realities and designed appropriate credit<br>packagesfor the enterprises in the region. This will go a long way in complementing the<br>amnesty programme of the Federal Government of Nigeria in the region.The results showed that majority of the rice traders were between 30 and 49<br>years with low educational status and marketing experience ranging from 6 to 10 years.<br>Unit Root Test showed that the variables were stationary at first differencing and were<br>integrated of the order zero, 1(0). Rice markets in the study area were integrated but the<br>integration level was low.<br>The Error Correction Model had a coefficient of -0.0061872<br>which was significant at 1% level and was negative. examined farmers access to microcredit and resource use efficiency in Ekiti State Sponsored microcredit financing scheme The Market Integration Function had<br>R2 (Coefficient of Determination) of 0.78 showing that the independent variables<br>explained about 78% of the variations in the prices of rice in the rural and urban rice<br>markets. Transportation cost, toll fee, processing cost and storage cost significantly<br>affected the level of market integration. The greatest problems encountered by the rice<br>traders were inadequate finance, (100%), high transportation cost/bad roads and poor<br>quality of local rice compared to foreign rice. To improve the level of market integration;<br>transportation, processing, storage, communication and credits facilities should be<br>provided. <br></p>

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