Analysis of Garri Marketing in Atiba Local Government Area, Oyo State Nigeria

Abstract

The study was conducted in Atiba Local Government Area of Oyo State in the south west zone of Nigeria. The main of the study is to examine the profitability of garri in the study. Specifically, to describe the socio economic characteristics; marketing practices and experience and costs and returns of garri marketers in the study area. Simple random sampling techniques was used to select representative samples with a total of 120 respondents. Budgetary analysis and regression analysis was used to estimate the cost and return and factors that determine the profitability of garri marketers in the study area. The result revealed that majority (90%) of the respondents were female with low literacy level owing to the fact that most of the respondent had primary education has the highest level of education. Majority (53.34%) of the respondent are within the age range of 26-35years.This implies that most people who are engage in this business are in the active age. Majority of the respondent are wholesalers (65.83%) while 27.50% of the respondents are retailer. The result on cost and returns revealed that Total revenue was N43, 200, 000 and Total cost was N 35,130,058 with a Gross margin of N8,674, 300 and Net Profit of N 8,069,942 per Month. The benefit cost ratio is N1.23 since BCR is greater than 1, this implies that garri marketing is very profitable. The result on the constraints showed that fluctuation in price (40.83%) is the most serious problem facing garri marketing in the study area due to season of the year. This could be attributed to dry season when harvesting tends to reduce and supply becomes low as a result of caking of the soil which makes harvesting difficult and costly, other problems that also surface are customer buying on credit and not paying on time, goods not delivered on time due to poor road infrastructure and lack of capital. Based on the result obtained from regression analysis there is significant relationship between reve

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