Spatial Pricing Efficiency of Palm Kernel Markets in Southeast, Nigeria
Abstract
The study examined spatial pricing efficiency of palm kernel markets in Southeast, Nigeria. A multi-stage sampling technique was adopted in sampling 120 palm kernel marketers for the study. Data were collected using structured questionnaire and analyzed using descriptive statistics, spatial price model and Pearson correlation matrix. Socioeconomic characteristics of the marketers showed a mean age of 48 years, majority (59.2%) were females, with many (69.2%) married. Mean household size of 7 persons was recorded and they all had formal education. Mean marketing experience of 12 years was recorded from the study and half (50%) do not belong to any market unions. Quite a number (75%) of the marketers use personal savings as source of finance for the palm kernel business. There was positive price spreads in all the market pairs which suggest inefficiency in palm kernel marketing in the study area. There were also significant differences in the average price of palm kernel between the urban and rural market pairs. Positive correlation coefficient values were recorded between the market pairs which suggest symmetry and co-movement of prices between the urban and rural markets. The study recommends that credit facilities should be advanced to the marketers and that there should be provision of more market outlets in the area to increase competition within the markets.
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