Research Article

ANALYSIS OF MARKET MARGINS AND MARKETING EFFICIENCY IN THE SOYBEAN SUPPLY CHAIN: EVIDENCE FROM LERE LGA, KADUNA STATE

SABO SUNDAY1*, FAIZA SANI BUHARI1
1 DEPARTMENT OF MARKETING FACULTY OF MANAGEMENT SCIENCES KADUNA STATE UNIVERSITY
* Corresponding author: saboson2000@gmail.com
Published: Dec, 2024
DOI: 10.68022/kmr.2024.nvd6nm3z
Pages: 48-57
Views: 16
Downloads: 4

Abstract

Soybean is primarily produced on smallholder farms in Lere LGA of Kaduna State. However, soybean marketers in Lereface numerous challenges, including high transaction costs, fluctuations in soybean prices, limited storage capacity, access to credit, and inadequate distribution networks. These challenges make profit maximization difficult. This study examines the market margin and efficiency of the wholesale soybean supply chain in Lere, Nigeria. A survey research design was utilized to collect datafor the study. A structured questionnaire was administered to a sample size of110 respondents. The cross-sectional data on soybean marketing collected includes production and yield data, market prices, and demographic information about the market participants. The study employed a random sampling technique to select soybean marketersfrom a list provided by the Soybean Marketing Association in Lere LGA. To ensure representationfrom different markets, five wards notablefor soybean marketing were purposely selected: Gure/Gwassoro, Okuta, Ilesha, Gwanara, and Yashkira. Cost-benefit analysis was used to estimate the market margin and marketing efficiency ofsoybeans. Our results indicate that an average of 17.5 bags were sold by marketers on each market day, with an averageprofit margin per marketer of5,188 and a market margin of12.35%. However, the marketing efficiency ofsoybeans in the area is relatively low, at 9.35%. These findings suggest that while soybean sales are profitable in Lere, there are inefficiencies in the marketing channel that need to be addressed to improve the performance of soybean marketers. The study recommends strategies to enhance marketing efficiency, such as reducing transaction costs, improving market access, and enhancing the productivity ofsoybean marketers.

Keywords

Soybean marketing MarketMargin Efficiency Supply chain Wholesale

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How to Cite

SUNDAY, S., & BUHARI, F. S. (2024). ANALYSIS OF MARKET MARGINS AND MARKETING EFFICIENCY IN THE SOYBEAN SUPPLY CHAIN: EVIDENCE FROM LERE LGA, KADUNA STATE. Kaduna Marketing Review, 2(2), 48-57. https://doi.org/10.68022/kmr.2024.nvd6nm3z

S. SUNDAY, and F. S. BUHARI, "ANALYSIS OF MARKET MARGINS AND MARKETING EFFICIENCY IN THE SOYBEAN SUPPLY CHAIN: EVIDENCE FROM LERE LGA, KADUNA STATE," Kaduna Marketing Review, vol. 2, no. 2, pp. 48-57, December 2024. doi: 10.68022/kmr.2024.nvd6nm3z

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