Costs And Returns Analysis Of Palm Wine Marketing In Uyo Area Of Akwa Ibom State, Nigeria

  • IB Adinya
  • MU Awoke
  • JU Ijoma
  • HO Edem
  • EE Enun
  • SA Ekpe
Keywords: Palm wine, marketing, profitability


This study examined the marketing of palm wine (Ukot) in Akwa Ibom State, Nigeria. The socio – economic characteristics of sellers, costs and returns, profitability analysis were the main focus. Sample of 120 palm wine marketers were randomly selected from Uyo Local Government Area of Akwa Ibom State using random sampling technique. One hundred and twenty respondents were interviewed at different drinking/marketing centers using questionnaires. Data obtained from the study were analyzed using descriptive statistics and cost-return analysis. Socio-economic profiles of the sellers revealed that marketing of palm wine in Akwa Ibom State is mainly dominated by men (75%). It was found that the average profit for the studied marketers N9,840.00 for 6,139 liters at N 30.00 per liter from January to December,2008. The cost and return analysis,  however, revealed that of all the marketing costs, transportation had the highest impact on the returns of sellers in the study area. Identifiable problems cited by sellers as affecting the marketing of palm wine in the study area were high cost of transportation, lack of capital/inadequate finance, inaccessibility of formal credit source because lack of collaterals, high taxation, lack of price information, poor market infrastructures and lack of roads maintenance/bad roads. Based on these findings, it was recommended that government should reduce tax as this will enable the sellers to make better profit. In addition to that, extension agents should advise palms wine marketers to form cooperative group(s) to enable them obtain loans from banks to increase their capital base for higher profit.

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eISSN: 1597-0906