PROFITABILITY ANALYSIS OF PADDY RICE MARKETING IN JIGAWA STATE, NIGERIA.

Abstract

The study investigated the challenges of marketing rice in Jigawa State with interest in establishing the profitability of the product and socio-economic characteristics of its marketers  . Four major markets located at Hadejia, Guri, Auyo and Taura local government area of Jigawa state, Nigeria were purposefully selected based on the concentration of the marketers in them. A hundred and forty-six (146) marketers were randomly selected proportionately based on the size of the markets. Structured questionnaire was used to elicit information from the marketers and the data collected was analyzed using descriptive statistics and marketing margin technique. The results shows that the market was dominated by males (90.4%) The data also shows the respondents 65-74 years constituted the lowest percentage of (6.8%). The household sizes of the marketers studied ranged between 1 and 9 persons and 78.8% of the paddy rice marketers are married, the results also indicated that majority 51.4% of the paddy rice marketers had Qur’anic education in the study area, 41.0% of the paddy rice marketers had marketing experience ranging from 10 – 19 years. Cost benefit analysis shows that marketing of Jigawa rice is profitable as ₦20498.4 only was the net profit at the end of the trading period. The major challenges facing the respondents include inadequate credit facilities with (41.1%), poor road network (26.0%) and lack of storage facilities with (20.5%). The study concludes by recommending the formation of accessibility of good road, provision of adequate credit facilities and provision of storage facilities.