ABSTRACT
Rice marketing is affected by several factors. The prices of rice varies between markets separated by just a few kilometers. This study examined Economics of Rice Marketing in Oredo Local Government Area Edo State, Nigeria. The specific objectives include; the socioeconomic characteristics of rice marketers in the study area, the cost and returns of rice marketing in the study area, to examine difference in price among markets in the study area, to examine the constraints faced in rice marketing. Primary and secondary data were used. The primary data was obtained through structured questionnaires, a sample size of 80 rice sellers were obtained using a multi stage sampling technique, secondary data were obtained from relevant journals articles, textbooks. The data obtained were analyzed by using descriptive statistics, gross margin analysis and inferential statistics, the descriptive statistics tools include: mean, percentages, frequency count and standard deviation, gross margin analysis was used for the cost and return structure, multiple regression was used for the inferential statistics. The result of the descriptive statistics showed that majority of the marketers are female, greater proportion (48.33%) of the marketers were within the age range of 41-60 years, also, most of the marketers are married (73.33%), with an average size of 6. Most marketers in the study area are wholesalers who deal majorly on the sales of foreign rice to local rice. Result of the gross margin analysis revealed that total variable cost (TVC) per 1kg of rice is ₦1,418.94, total fixed cost (TFC) of ₦2,453.71, gross margin of ₦1,034.77 and a profit of ₦536.69, stating that rice marketing was profitable in the study area. It was discovered that there is no significant xi difference in price of rice among markets. So, rice can be purchased in any of the markets. The problem faced by rice marketers in the study area include: insufficient capital, poor transportation, poor credit facilities, high cost of transport, high cost of purchase and high market charges. Rice marketing in Oredo Local Government Area is profitable with no significant difference in price between markets in the study area but the marketing is quite insufficient due to these main constraints (high cost of purchase, poor transportation and high cost of transportation) faced by the marketers.
