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ABSTRACT
The purpose of this study is to examine the effectiveness of marketing in the sales of agricultural products (Study of Songhai Farms Bunu Tai, Rivers State). In other to arrive at the objective of the study, relevant literature were review, two (2) research hypotheses were formulated to guide the study. One Hundred and Nine (109) copies of questionnaire were distributed to four Unit/Department of Songhai Farm, Bunu Tai, these Unit/Department include; Fish Farm Unit, Banana Plantation Unit, Cassava Processing Unit, and Poultry Unit. Out of the One Hundred and Nine (109) copies of questionnaire distributed, Ninety (90) copies of questionnaire were retrieved. Simple percentage and frequency distribution were used to analyze the data, Chi-square were use to test the hypotheses. It was found out that marketing elements are employed in the sale of agricultural products, and Songhai Farm Bunu Tai do encounter marketing problems in the sale of their products. Base on the findings, it was recommended that, agricultural marketing system in Songhai farm should be positioned to benefit and encourage the farmers, and the public. Agricultural marketing in Songhai farm should be modernized. Elites and educated ones should be much involved and not leaving it to illiterate men and women so that data on agro business could be collated.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Marketing of agricultural outputs include all activities involved in the identification, conceptualization and the flow of agricultural products and services from the point of initial production until they reached the final consumer (Igben and Eyo, 2002). After production, every farmer is faced with the problem of selling the farm produce. Once the market has been found, the farmer sets out machinery that will enhance the movements of the farm outputs to the ultimate consumers. This is because farm produce usually passes through series of markets and middlemen before it gets to the final consumers. For instance, yam bought from Oturkpo in Benue State at harvest may completely be consumed after a year of harvest, some in Lagos; and others in Onitsha, Aba and even abroad.
Skills in marketing are needed by agro-entrepreneurs, even those who own and run small scale farms. Whether they provide a physical product or a service, they cannot do so unless they get customers. Getting customers to purchase the service or product is the purpose of marketing. Production and marketing are important for satisfying customer’s needs and also enable entrepreneurs to make some profits. Customers are the most important people to your enterprise. If you do not provide what they want, at price they are willing to pay, and treat them with respect, they will go somewhere else. Customers focused marketing is the single most important factor that determines the success of an enterprise. Marketing is not just about selling: it required a clear and astute understanding of what customers want and the ability to deliver it to them through the most appropriate channels for a profit. It includes the planning, pricing, promotion and distribution of products and services for consumers, both present and potential (Nnabuko, 2004).
Marketing in the sales of agricultural product in Nigeria is predominantly informal in nature and suffers many institutional and structural impediments. This is because majority of African rural populations are engaged in farming on small holdings, as a blend of commercial and subsistence crop production. The small-scale farm business not only employs most of the poor in the population, but is often the market procuring the basic commodities for survival. Hence, most Africans are both producers and consumers.
Generally, two types of markets in agricultural product context exist. These include market for farm inputs called the factor market and market for farm output called product market. The operators in both markets are households and farm firms. In the product market, households demand for consumer goods and services that are produced and supplied by farm firms whereas in the factor market, farm firms demand for inputs supplied by households. While the demand in the former is direct demand, the demand for the latter is derived demand.
The market provides information on the going market prices for goods and services to farmers, middlemen and consumers, which are essential in making production, marketing and consumption decisions. This is because agricultural products face perfect competitive market perfect competitive market structure exists in the factor as well as the product markets. In the factor market, there is perfect competition when there are so many buyers such that the action of one buyer has no significant effect on the market price for inputs.
In the product market, perfect competitive market structure describes all those market arrangement whereby the sellers have no control over the market prices of good which they handle; entry as well as exit of participant is free.
1.2 STATEMENT OF THE PROBLEM
Literature has reported that in spite of the efforts marketing play in the sale of agricultural product, there are still some challenges experienced.
Over the years, major changes came into effect to improve the agricultural marketing system. Many institutions viz., the regulated markets, marketing boards, cooperative marketing institutions, warehousing cooperatives etc., have been established primarily to help the farmers. However, various studies indicated that modernization in agricultural marketing could not keep pace with the technological adoptions in agriculture. The various marketing functions viz., grading, standardization, storage, market intelligence, etc., need to be improved to meet the present day requirements of the farmers. In improving the marketing system for food and livestock in developing countries as Nigeria, it is pertinent to understand the nature of marketing problems as it is only by doing this that workable solution can be found to them. Indeed such knowledge of marketing problems would give information as to why markets are not developing and what measures are required to develop the markets. These problems include the following:
- Forced Sales:
- Technological Development Problems in Farm Production:
- Lack of Transport Facilities:
- Poor Handling, Packing, Packaging, and Processing Facilities:.
- Adulteration of Produce and Malpractices in Market:
- Growth of Urban Centres:
- Communication Problem:
- Lack of Information about Production and Marketing:
- Lack of Farmers’ Organization:
- Inadequate Research on Marketing:
These and many more necessitated this research study.
1.3 OBJECTIVE OF THE STUDY
The aim of this study is to investigate the effectiveness of marketing in the sales of agricultural products. Other specific objectives are:
- To ascertain the marketing elements employed in the sale of agricultural product.
- To identify marketing problems faced by Songhai farm in the sale of their products.
iii. To evaluate the impact marketing has in the sales of agricultural products
- To make recommendations| as solution to the challenges of marketing in the sale of agricultural products.
1.4 RESEARCH QUESTIONS
- What are the marketing elements employed in the sale of agricultural products?
- What are the challenges faced by Songhai farm in the sale of their product?
iii. Does marketing have any impact in the sale of agricultural product?
- Are there any recommendations made as solution to the challenges facing marketing in the sale of agricultural products of Songhai farm Bunu Tai?
1.5 RESEARCH HYPOTHESES
H I
H0: Marketing elements are not employed in the sale of agricultural products.
H1: Marketing element are employed in the sale of agricultural products
H II
H0: Songhai farm does not encounter any marketing problems in the sale of their product.
H1: Songhai farm encounter marketing problems in the sale of their product.
1.6 SIGNIFICANCE OF THE STUDY
The study is significant in some ways to numerous people.
Apart from the agricultural producers who may be involved in the direct marketing of their products in Songhai farm others like the wholesalers, trade associations, retailers.
This groups are seen to bring the particular product to the door step of the consumers in the form, time and place they are needed by the consumers.
Again, there is a saying that production is incomplete, until it gets to the final consumer. For this process to be realized there is need for an efficient storage system mostly for the perishable products, that will enhance immediate evacuation of this farm outputs from the farm gate, then to the consumer for the production prices to be complete. It is therefore significant, as it makes available efficient storage system for perishable products. Furthermore, the present and potential students of the department of marketing will benefit from this study as it will be added to the existing literature that will be useful in future research.
1.7 SCOPE OF THE STUDY
This study is aimed at ascertaining the effectiveness of marketing in the sales of agricultural product of Songhai farm in Bunu Tai, Rivers State.
It is therefore limited to only Songhai farm in Bonu Tai in Rivers State.
1.8 LIMITATIONS OF THE STUDY
There are some factors that hinder the success of this study; they include time, finance, non availability of material, and uncompromising attitude of respondents. All these factors constitute serious constraints in one way or the other to this study.
1.9 DEFINITION OF TERMS
– AGRICULTURAL PRODUCT: Are farm products, planted and harvested for sale to consumers.
– EFFECTIVENESS: Is the process of producing the results that is wanted on intended successfully and perfectly.
– MARKETING: AMA (1985) maintained that marketing is the process of planning and executing the conception, pricing promoting and distribution of ideas, goods and services.
– SALES: The numbers of items product sold out daily as a result of demand or request made by consumers.