ISSN 2360-798X
Abstract
Accepted 21st October, 2014
The spatial spread of markets in Enugu State necessitated the study on spatial price analysis of palm oil in Enugu North Zone of Enugu State, Nigeria. The study was specifically guided by the following objectives: description of the socio-economic characteristics of the palm oil marketers; analysis of the factors that influence spatial price of palm oil price; determination of the pricing efficiency of palm oil marketing in the identified markets; analysis of costs and returns of palm oil marketing in the identified markets; and analysis the constraints to effective and uniform palm oil price mechanism in the area. The study employed the combination of descriptive and inferential statistics to realise the objectives. Results of the analysis shows that spatial price exist in the marketing of palm oil in the area. The result further showed that spatiality exist in the price of palm oil due to the quantity of palm oil demanded, cost of production, cost of transportation, weather, quantity supplied, storage cost, processing technology, changing needs of consumers and consumers’ preference. Despite the fact that price of palm oil differ across the markets, palm oil marketing in the sampled Local Government’s markets were efficient. The result equally identified endogenous and exogenous factors as the challenges to effective palm oil marketing in the area. Based on the findings, the following study recommended that marketers of palm oil should form cooperative societies so as to be able to access credit facilities from financial institutions and other government agencies, marketing infrastructure such as good roads, storage facilities etc should be provided in the area to ease smooth marketing and reduce marketing cost, regular training and retraining programme should be provided for the marketers to equip them with necessary marketing and market information.
Keywords: spatial, price, palm oil, efficiency, marketing