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Abstract
This research is entitled agricultural marketing and economic development in Nigeria. The study was carried out in Rivers State Ministry of Agriculture in Port Harcourt of Rivers State, Nigeria. The population of the study was made up of junior and senior staff from the Rivers State Ministry of Agriculture which was unknown. The sample size of this study is a judgmental sample of 200 staff from the Ministry of Agriculture in Port Harcourt. The statistical test used in the analysis of the data collected was the Pearson Product Moment Correlation Coefficient. Base on the analysis, the finding showcase that there is significant relationship between agricultural product packaging, transportation, grading, storage and processing and the economic development of Rivers State. It was concluded that with full application of agricultural marketing of products, the quality of such products are assured, consumer‘s choice are influenced, profit maximized, distribution and segmentation of such products and product markets enhanced and adequate pricing system is established. We therefore recommended amongst others that in order to facilitate agricultural development, government should adopt an integrated approach which is a multidimensional strategy for improving the quality of the life of the people by supporting farmers so they can acquire machines and other farm equipments.
Table of Contents
Cover Page ii
Declaration iii
Certification iv
Dedication v
Acknowledgement vi
Abstract viii
Table of Contents ix
CHAPTER 1 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problems 3
1.3 Purpose of the Study 4
1.4 Research Questions 4
1.5 Research Hypothesis 5
1.6 Significance of Study 5
1.7 Scope of the Study 6
1.8 Limitations of the Study 6
1.9 Definitions of Terms 6
CHAPTER 2 8
LITERATURE REVIEW 8
2.0 Introduction 8
2.1 Conceptual Framework 8
2.2.1 Agricultural Marketing 9
2.1.2 Dimensions of Agricultural Marketing 11
2.1.3 Concept of Economic Growth and Development 14
2.1.4 Dimensions of Economic Growth and Development 15
2.1.5 Agricultural Marketing and Economic Growth/Development 21
2.3 Theoretical Framework 22
2.3 Review of Related Empirical Studies 23
2.3 Summary of Review of Related Literature 24
CHAPTER 3 26
RESEARCH METHODOLOGY 26
3.0 Introduction 26
3.2 Research Design 26
3.3 Population of the Study 26
3.3 Sampling Techniques Used 27
3.4 Sample Size 27
3.5 Sources of Data 27
3.5.1 Primary Source (s) of Data 27
3.5.2 Secondary Sources of Data 27
3.6 Research Instrument for Data Collection 28
3.7 Validity and Reliability of Instrument 28
3.8 Techniques for Data Analysis/Test of hypotheses 29
CHAPTER 4 30
DATA PRESENTATION AND ANALYSIS 30
4.1 Data Presentation and Analysis 30
4.3 Hypothesis Testing 37
4.3 Discussion of Findings 40
CHAPTER 5 42
SUMMARY, CONCLUSION AND RECOMMENDATIONS 42
5.0 Introduction 42
5.1 Summary 42
5.2 Conclusion 43
5.4 Recommendations 44
REFERENCES 45
Appendix I 47
Appendix II 48
CHAPTER 1
INTRODUCTION
1.1 Background of the Study
Agriculture is the bedrock of economic growth, development and poverty eradication in the developing countries. Agriculture has also regarded as the engine and panacea to economic prosperity. Marketing of agricultural commodities developed after the man was able to produce more food than he needed for himself, and exchange of his products with others started. This transition from production for consumption to production for exchange came about slowly. About a century ago, farmers used to consume most of what they produced; but, now most of what the farmers produce is exchanged for other things what they require (Egbochukwu, 2008). This tendency has increased their dependence on marketing, which has resulted in the overall development of the market mechanism (Egbochukwu, 2008). In the words of Gunner Myrdal (1984), the battle for long-term economic growth will be won or lost in the agricultural sector. However, how this path leads to economic prosperity is still subject to debate among development specialists and economists.
Agriculture plays a significant role in rural economies of the United States. It creates job opportunities, supports rural development, and secures food production (Rosenberger, Gebremedhin, & Hailu, 2002). Through processing and marketing of farm and food products, it makes significant contribution to the economy of rural communities (Rephann, 2008). The farm sector consists of small and large farms. The small family farms, which have the annual sales less than $250,000, were 88 percent of total US farms in 2007 (U.S. Department of Agriculture [USDA], 2011b). Small farms have a lower profit than the large farms but play a significant role in rural economies (Hoppe & Banker, 2010). The large farms were only 12 percent of total U.S. farms in 2007, but contributed to 84 percent of the total value of U.S. production (Hoppe & Banker, 2010).
Marketing is as critical to better performance in agriculture as farming itself. Therefore, market reform and marketing system improvement ought to be an integral part of policy and strategy for agricultural development. Although a considerable progress has been achieved in technological improvements in agriculture by the use of high-yielding variety seeds and chemical fertilizers, and by the adoption of plant protection measures. The rate of growth in farming in developing countries has been limping behind the desired levels. This has been largely attributed to the fact that not enough attention has been given to the facilities and services which must be available to farmers that would support agricultural sector for its development. Marketing is one of those facilities needed for overall economic development of nations.
The term agricultural marketing is composed of two words-agriculture and marketing. Agriculture, in the broadest sense, means activities aimed at the use of natural resources for human welfare, it includes all the primary activities of production. But, generally, it is used to mean growing and/or raising crops and livestock. Marketing connotes a series of activities involved in moving the goods from the point of production to the point of consumption. It includes all the activities involved in the creation of time, place, form and possession utility. According to Thomsen, the study of agricultural marketing comprises all the operations, and the agencies conducting them, involved in the movement of farm-produced foods, raw materials and their derivatives(Egbochukwu, 2008).
Nigerian economy in past decades strives on the agricultural sector. The sector is reputed as the mainstay of the economy in the early 1960’s. It is seen as the key driver for growth and development. In fact, to further buttress the pivotal role the sector plays in the Nigerian economy, the agricultural sector is part of the Millennium Development Goals program of poverty reduction in Nigeria. In most developing countries (low and middle-income countries), the agricultural sector remains, the largest contributor providing inputs, food, employment opportunities, raw materials for other industries, provision of foreign earnings from exportation of the surpluses, and more importantly the enormous advantage recovery value added in the various production process (Izuchukwu, 2011).
1.2 Statement of the Problems
Nigerian system of agricultural marketing suffers from a number of defects. As a consequence, The Nigerian farmer is deprived of a fair price for his produce. Under the traditional system of marketing of agricultural products, producer sell incurred ahigh marketing cost, and suffered from unauthorized deductions of marketing charges and theprevalence of various malpractices. Agricultural product marketing has contributed towards the development of the Nigerian economy in recent years due to good yield and customer reach through transportation.
How does agriculture contribute to economic development? This is an old andhonorable question, tracing back at least to the Physiocrats in the mid-eighteenthcentury, and one that was central to the early development of analytical economicsby Adam Smith, David Ricardo, and Thomas Malthus.
An efficient and well-known marketing system widens the market for the products by takingthem to remote corners both within and outside the country, i.e., to areas far away from theproduction points. The widening of the market helps in increasing the demand on acontinuous basis, and thereby guarantees a higher income to the producer. The main problems facing agricultural marketing in Nigeria are poor agricultural products packaging, bad transportation network, poor product grading system and lack of agricultural product storage system. Hence, the study seeks to examine the relationship between agricultural marketing and economic development in Nigeria.
1.3 Purpose of the Study
The purpose of this study is to examine agricultural marketing and economic development of Rivers State, Nigeria. Other objectives are;
1. To assess the relationship between agricultural products packaging and economic development of Rivers State.
2. To assess the relationship between agricultural product transportation and economic development of Rivers State.
3. To assess the relationship between agricultural product grading and economic development of Rivers State.
4. To assess the relationship between agricultural product storage and economic development of Rivers State.
1.4Research Questions
For this research work to be carried out, the following research questions are formulated, they are;
1. To what extent does agricultural product packaging influence economic development of Rivers State?
2. To what extent does agricultural product transportation influenceeconomic development of Rivers State?
3. To what extent does agricultural product grading influenceeconomic development of Rivers State?
4. To what extent does agricultural product storage influenceeconomic development of Rivers State?
1.5Research Hypothesis
The following research hypothesis are formulated for the research work to be carried out, they are;
H01:There is no significant relationship between agricultural product packaging and economic development of Rivers State.
H02:There is no significant relationship between agricultural product transportation and economic development of Rivers State.
H03:There is no significant relationship between agricultural product grading and economic development of Rivers State.
H04:There is no significant relationship between agricultural product storage and economic development of Rivers State.
1.6Significance of Study
It is a real fact that, in any field of human endeavour improvements are achieved by studying about what people do, how they do them, with what effect (negative or positive) and possible need for adjustment, the study of agricultural marketing and economic development is note exception. The result of the study therefore will be an eye opener towards the important role of agricultural marketing andeconomic development in Nigeria.
This study will be significant to the following people, they are;
Government: It will enable the government realize and discover the relevance of agricultural marketing to the economic development of Rivers State and thus, stand to meet the challenges and ordeals posed by agricultural marketing. It will also help the government plan her business policy along the path of agricultural marketing.
Education Institutions: It is believe that at the end of this study, the educational authorities will see the urgent and sudden need to introduce how agricultural marketing enhance the economic development of Rivers State, and the course to the academic curriculum and at the same time equip the students.
Students: This research work will serve as a vital academic tool for students who may wish to write further on this topic.
1.7 Scope of the Study
This work is to examine the evolving role of agricultural marketing andeconomic development of Rivers State, Nigeria. It will be carried out in Obio-Akpor Rivers State. This study will be limited to the ministry of agriculture in Obio-Akpor in Rivers state. The study is limited to staffs in the Ministry of Agriculture in Obio-Akpor in Rivers State
1.8 Limitations of the Study
This work will not go without some visible constraint that in one way or the other affects the quality of this research work. There was not enough time to carry out an extensive study of this subject matter. Time alone is not the only constrain as regards producing an extensive research work but finance was another stumbling block that was encountered as regard getting much materials on the subject matter.
1.9 Definitions of Terms
Agriculture: The science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products.
Economic growth and development: An economic growth and development is a period of increasing business activity signaling the end of a recession. Much like a recession, an economic growth and development is not always easy to recognize until at least several months after it has begun.
Economy: The state of country or region in terms of the production and consumption of goods and services and the supply of money.
Production: The processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services. Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).
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