Greener Journal of Business and Management Studies

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Greener Journal of  Business and Management Studies  Vol. 3 (5), pp. 201-206, July 2013

 ISSN: 2276-7827 ©  2011 Greener Journals

Research Paper

Manuscript Number: 020313431

 

Marketing Margin and Transaction Cost in Pearl Millet Market Supply in Borno State, Nigeria

 

Bashir Alhaji Baba1 and Yakaka Bukar Maina2

 

1Lake Chad Research institute, Maiduguri, Borno State, Nigeria.

2Department of Agricultural Economics, University of Maiduguri, Maiduguri, Borno State Nigeria.

 

*Corresponding Author’s Email: bashir5880 @ gmail. com, Tel: 08025485009, 07032614009


Abstract:

This study examined marketing margin and transaction cost in pearl millet market supply in Borno State, Nigeria. The specific objectives of the study include; examine socio-economic characteristics of the millet chain actors; estimate profit margin, marketing margin, and gross margin for millet chain actors; measure transaction costs associated with millet supply and; identify constraints to millet supply to markets. Purposively, five major millet markets were selected within the state and a total of 120 respondents were considered at random for the study. Findings showed that the highest mean age of the marketers recorded was among wholesalers of millet (46.5 years). The educational attainment of the chain actors showed that all the actors had one form of education or the other but majority had Qur’anic education with the highest attainment showing 90.9% among producers. Millet supply experience showed 41.2% among wholesalers as the most experienced and the least experienced suppliers recorded were among retailers (32.6%). The findings revealed that despite the highest marketing margin incurred by the wholesalers in supplying and marketing of millet in the study area; they also incur the highest profit margin (13.73%). The study revealed transportation cost as the highest transaction cost in pearl millet supply chain in the study area (55%). The percentage of those placing orders with suppliers and the proportion of purchases by order were highest among wholesalers (67.1%) and least was among collectors (12.3%). The proportion of purchases on order was highest (75%) among wholesalers and the least (12.3%) was among collectors. Despite these general problems, transportation was the major problem faced by the suppliers (84.0%). The study recommends formation of group cooperative to avert the high cost of transportation and storage to enhance profit margin among millet suppliers. 

Key Words: Marketing Margin, Transaction Cost, Pearl Millet, Borno State, Nigeria.

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