ANALYSIS OF MARKET MARGINS AND MARKETING EFFICIENCY IN THE SOYBEAN SUPPLY CHAIN: EVIDENCE FROM BARUTEEN LGA, KWARA STATE
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Date
2024-06
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Abstract
Soyabean is produced mainly in small holder farms in Baruteen LGA of Kwara State, but the
soybean marketers in Baruteen are faced with a lot of challenges ranging from high transaction
costs, fluctuations in soybeans prices, limited storage capacity, access to credit, down to
inadequate distribution networks. This making profit maximization difficult. This study
examines the market margin and efficiency of wholesaler soybean supply chain in Baruteen,
Nigeria. Data for study were obtained from primary sources with the aid of a well-structured
questionnaire. The study used cost-benefit analysis to estimate market margin and marketing
efficiency of soybeans. Our results show that an average of 17.5bags were sold by marketers
at every market day with average profit margin per marketer of ₦5,188, and a market margin
of 33.14%. However, the marketing efficiency of soybean in the area is relatively low, at
15.37%. These findings suggest that while the sales of soybeans are profitable in Baruteen,
there are inefficiencies in the marketing channel that need to be addressed in order to improve
the performance of the soybean marketers. The study recommends strategies to improve
marketing efficiency, such as reducing transaction costs, improving market access, and
enhancing the productivity of soybean marketers.
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Citation
Mahmud, H. U., Nofiu, N. B. and Lafia, A. M. (2024). Analysis of Market Margins and Marketing Efficiency in the Soybean Supply Chain: Evidence From Baruteen LGA, Kwara State. Malete Journal of Accounting and Finance, 4 (2), pp. 225-23. Available online at: https://majaf.com.ng/index.php/majaf/index