Marketing Margin and Determinants of Net Returns to Garri Marketers in Ohafia Local Government Area, Abia State, Nigeria
The study was carried out to establish the nature of marketing and determinant of net returns to garri marketers in Ohafia Local Government Area of Abia State, Nigeria. Sixty respondents were selected at random with 10 respondents from each of the five purposively selected community markets in the study area. The selected communities were Abiriba, Nkporo, Amangwu and Okamu. The respondents were selected from one major market from each of the community using questionnaire as the data collection instrument. Data were analyzed using descriptive statistics and ordinary least square regression technique. The study examined the marketing cost and returns of retailed garri; factors influencing the marketers’ net returns; the problems associated with garri marketing and the socio-economic characteristics of the respondents. Result of the study showed that the gross margin for marketing of garri was N30, 427.13 with a net return of N28, 856.22 and average sales receipt of N352, 519.86. The average total cost incurred by the marketers was N1, 570.91. 99.14% of the total cost was borne by the purchase of garri, 0.19% by transportation, while the remaining 0.672% was spent on marketing cost such as packaging, depreciation on marketing equipment, marketing charges/levies, and marketing experience among others. The regression result indicated that 93.92% of the variation in net returns of garri marketers was explained by the explanatory variables fitted in the model. The cost of garri purchased and transport cost are statistically significant at 10%. Other costs (depreciation, packages, rentage and marketing charges) experienced in the trade were not statistically significant on the marketers’ net return. High cost of garri purchased, high transportation cost and price fluctuations were identified as the major problems associated with garri trading in the study area. Other constraints include information dissemination, poor marketing facilities, and high marketing charges. Provision of basic infrastructural facilities and formation of a viable cooperative society by the marketers were recommended based on the study.
Marketing Margins, Transport Cost, Infrastructural Facilities, Cooperative Society, Net Returns
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