Marketing Infrastructure for Kola-Nut in Ika Local Government Area of Delta State, Nigeria 1

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1 Marketing Infrastructure for Kola-Nut in Ika Local Government Area of Delta State, Nigeria 1 E.N. Ajani and E.A, 2 Onwubuya Department of Agricultural Extension, Faculty of Agriculture, University of Nigeria, Nsukka 1 lyneajani@gmail.com 2 lizzybuya@yahoo.com ABSTRACT The study was designed to identify the marketing infrastructure for kola-nut in Ika Local Government Area of Delta State. A structured interview schedule and questionnaire were used in obtaining information from sixty respondents. Simple random sampling technique was used in selecting the respondents. Three towns were selected for the study, namely: Above, Umunede and Igbo do. Data were analyzed using percentage and mean score. The study revealed that stores were the major marketing infrastructure in the area. The respondents also indicated that road network and security facilities were available in the market. The major obstacles for effective marketing of kola nut were inadequate capital, poor storage facilities, high cost of transportation, language barrier, inadequate supply of kola nut, poor market experience and other losses emanating from sprouting and theft. It was concluded that improved storage facilities, access to credit/capital high demand of kola nut, cooperative transportation as well as adequate marketing strategies will help to alleviate the problems faced by kola-nut marketers in the area. This will also increase the revenue of the kola-nut marketers and subsequently minimize loss of income by the marketers. Efforts should be intensified by governmental and non-governmental extension agencies to ensure that adequate marketing infrastructure are put in place in order to boost the income of the respondents. Key words: Markets, facilities, kola-nut, Delta State, Nigeria 1. INTRODUCTION Kola is one of the most popular plantation crops in Nigeria. It is widely cultivated in many tropical countries such as central and South America, Ivory Coast, Brazil and Nigeria. It is mostly cultivated in South Western Nigeria in some states like Ogun, Ondo, Ekiti, Osun and Oyo States. There are three species of kola which are mostly grown in Nigeria. These include kola nitida, kola acuminate and kola verticillate (Badaru, Aliyu and Adebola, 2006). Continuing, they noted that kola plays an important role in the socio -economic life of rural house holds and the community at large. It serves as raw materials for clothing and textile industries as well as pharmacological industries. Marketing of kola- nut is done by the producers who sell at the farm gate or village site to either the wholesalers in rural and urban areas or directly to the retailers who are mostly women. These women process the kola- nuts from the pods before selling to the consumers (FAO, 2005). It was noted by Eusebus (2004) that small holder farmers are located in remote areas with poor marketing information and market infrastructure. The marketing information required by these marketers include policies which influence prices, how to store kola- nut, insecticides used during storage, marketing outlets, handling of kola- nut, etc. This marketing information will help to reduce the risk involved in marketing of kola-nut. Adedoyin (2005) noted that availability and effectiveness of marketing infrastructures like storage facilities, transportation facilities and communication networks determine the ability of marketing system to effectively and efficiently perform its developmental function. Adequate transportation network must exist for effective distribution of kola nut to take place. The existing transportation network remains unsatisfactory and does not facilitate effective distribution to the wholesalers, retailers and consumers in the major areas especially at harvesting peak periods. The study was therefore designed to find out the marketing infrastructure for kola nut in Ika L.G.A of Delta State. Specifically, the study was designed to: 1. Identify marketing infrastructural facilities available for marketing kola-nuts. 2. Ascertain factors limiting effective marketing of kola-nuts. 3. Suggest possible ways of alleviating the constraints faced by kola-nut marketers. 2. METHODOLOGY The study area was Ika Local Government Area of Delta State, Nigeria. The State is bounded in the North by Edo State, in the East by Anambra State. The State occupies an area of land of about 16,842km 2 and has a population of 4.01 million people (NPC, 2006). The State produces food 694

2 crops such as oil palm, yam, cassava, maize, rice, plantain, among others. Also produces livestock such as poultry, goat, pig, sheep and cattle. Major economic activities of people in the area are farming and petty trading. This Local Government Area was selected purposively because of high level of kola- nut marketing in the area. Three towns, namely Abovo, Umunede and Igbodo were purposively selected for the study. In each of these towns, twenty respondents were selected using simple random sampling. This brought the total number of respondents to sixty kolanut marketers. a. Measurement of variables The structured interview schedule used for data collection was divided into three sections based on the objectives. The first section sought information on infrastructural facilities available for marketing of kola-nut in the area. Respondents were asked to select from a list of available marketing infrastructure for kola-nut. These include: stores, road network and security. They were also asked to indicate means of transportation of kola-nut to the market. Factors limiting effective marketing of kola-nut were the focus of the second section. The respondents reacted to thirteen possible constraint variables such as inadequate capital price fluctuations, poor storage facilities, poor market experiences, low demand of kola, language barrier, high cost of transportation, among others using a three point Likert-type scale of very serious (3), serious (2) and not serious (1). The mean value of 2.0 was used to determine the constraints. The third section addressed perceived ways of alleviating the constraints faced by kola-nut marketers. Respondents were asked to rate their perception of seventeen possible ways of solving the problems they encounter on marketing of kola-nut using a three- point Likert-type scale of very important (3), important (2) and not important (1). The mean value of 2.0 was used to determine the possible solutions as perceived by the kola-nut marketers. b. Statistical data analysis Data were analyzed using SPSS statistical software where frequencies, percentage and mean scores were used to calculate and presented as Tables. 3. RESULTS AND DISCUSSION a. Infrastructural Facilities Available for Marketing of Kola-Nut in the Area The study showed that majority (65.0%) of the marketers had stores as their marketing infrastructure for kola- nut while about 29% and 7% of them indicated that there were road network and security facilities, respectively in the markets. This implies that store is the most available infrastructure in the market which protects both the marketers and the kola nuts from direct heat of the sun as well as keeping the kola-nuts away from theft. Most of the marketers use vehicles to carry kola nut to the market. Some of them make use of human carriage as well as trucks, on reaching the market they now use wheel barrows and head pans to take them to their various shops. The study also revealed that cost of transportation affects the prices of kola nut and this reduces the profit to be made after selling the kola nuts. About 55% of the respondents indicated that the markets they go to sell the kola- nuts were motorable while 23.3% and 21.7%, respectively indicated that the markets were fairly motorable and not motorable. This shows that most of the respondents had access to good road network. Also, 81.7% of the respondents store their kola nuts in family house while 11.7% of them store in improvised thatched rooms in the backyards and 6.7% of the respondents store in market shops. This shows that most of the respondents store their kola- nuts in their family houses from where they can transfer to the various markets for sale. Also, majority (78.3%) use basket, water proof and leaves in storing kola nuts while about 21% store using basket and cement bag paper. This implies that most of the respondents store kola nuts using basket, water proof and leaves. This is in line with the findings of Uguru (1996) which stated that kola- nuts are stored in baskets lined with leaves and then covered with waterproof which can also serve as a substitute for leaves and this reduces post harvest losses in stored kola nuts. The findings of this study also showed that about 43% of the respondents store kola nut between three to six months while 23.3% store between nine to twelve months. Also, 15.0% and 11.7% of the respondents store kola- nut for less than three months and three to nine months respectively. This implies that kola- nuts can be preserved for a relatively long period of time without great losses to the marketers. This has helped the marketers to maximize profit after selling the kola nuts on storage. 695

3 Table 1: Percentage distribution of marketing infrastructural facilities available in the market (n = 60) Variables Percentage Marketing infrastructure Stores 65.0 Road network 28.3 Security 6.7 Means of transportation Human carriage 16.7 Vehicle 70.0 Truck 13.3 Road condition/accessibility of the road Motorable 55.0 Fairly motorable 23.3 Nor motorable 21.7 Means of storage Market shop 6.7 Family house 81.7 Improvised thatched rooms 11.7 Storage materials Basket + water proof + leaves 78.3 Basket + cement bag paper 21.7 Storage duration Below 3 months months months months months and above 5.7 b. Factors limiting effective marketing of kolanut The study showed that the major constraints for effective marketing of kolanuts were inadequate capital X = 2.70, price fluctuations X = 2.52, poor storage facilities X = 2.32, poor market experience X = 2.32, low demand of kola X = 2.27, language barrier X = 2.25, high cost of transportation X = 2.23, Other factors (constraints) which were rated low by the respondents include: trade union restriction X = 195, inadequate supply of kola X = 1.67, government policy X = 1.58, poor communication network X = 1.57, poor educational background X = and other losses emanating sprouting and theft X = Inadequate capital prevents the marketers from buying kola nuts in large quantities and storing for later sales when there is increase in price. Price fluctuation also affects the marketing of kola nut greatly; this discourages the marketers from storing in large quantities as a result of fear of decrease in price. Table 2: Mean scores of factors limiting effective marketing of kola-nuts (n = 60) Variables Mean scores Inadequate capital 2.70* Poor storage facilities 2.32* High cost of transportation 2.32* Poor communication network 1.57 Language barrier 2.25* Trade union restriction 1.95 Inadequate supply of kola 1.67 Low demand of kola 2.27* Poor educational background 1.43 Government policy 1.58 Other losses (theft, sprouting) 1.43 Price fluctuation 2.52* Poor market experience 2.32* *Major constraints X 696

4 c. Perceived ways of Alleviating the Constraints Faced by Kola-Nut Marketers The data revealed the various ways of alleviating the constraints faced by kola nut marketers. These include: improved storage facilities X = 2.58, access to credit / capital X = 2.33, cooperative transportation X = 2.22, government aid vehicle X = 2.22, and high demand of kola nut X = Others are provision of extension services in areas such as marketing strategies X = 2.53, forming of cooperative society X = 2.55, sourcing for fund X = 2.34, information dissemination X = 2.27, hygiene X = 2.12, training X = 1.97, formal education X = 1.25, and seminars X = High supply of kola nuts X = 1.92, good roads X = 1.98, improved / access to communication network X = 1.78, and government provision of security X = 1.65, were also suggested by the respondents for effective marketing of kola- nut. Provision of improved storage facilities will help to reduce price fluctuations and inter market price disparities on the various markets. However, adequate transportation facilities will increase marketing efficiency because many kola nuts are still confined to village markets because of poor transportation facilities. Reduction of transportation cost will also enhance reduction in prices of kola nut thereby leading to high demand of kola nut by the consumers. Table 3: Mean scores of perceived ways of alleviating the constraints faced by kola nut marketers (n = 60) Variables Mean scores X, Cooperative transportation 2.22* Good roads 1.98 Government aid vehicle 2.22* Improved storage facilities 2.25* High supply of kola nut 1.98 High demand of kola nut 2.20* Improved/access to 1.78 communication network Access to credit/capital 2.33* Government provision of security 1.65 Provision of extension services in areas such as Formal education 1.75 Seminars 1.65 Training 1.79 Hygiene 2.12* Sourcing for fund 2.34* Forming of cooperative society 2.55* Information dissemination 2.27* Marketing strategies 2.5.3* *Major factors 4. CONCLUSION AND RECOMMENDATIONS This study examined the marketing infrastructure for kola-nut in Ika L.G.A of Delta State. It was observed that stores were the major available marketing infrastructure in the various markets studied. Also available in the markets were road network and security facilities. The study further revealed that major constraints for effective marketing of kola nuts were inadequate capital, poor storage facilities, language barrier, inadequate supply of kola nut, poor market experience and other losses such as sprouting and theft. In the light of the major findings of this study, the following recommendations were made to alleviate the constraints faced by the kola nut marketers. There is a great need for the kola nut marketers to expand the demand for kola nut through the use of appropriate mass media channel of communication to advertise their products. Extension agents should assist the marketers to form cooperatives. This will help them to buy in groups and reduce transportation cost. Adequate transportation facilities and improved road networks should be provided for the marketers to ensure easy marketing of kola nut from the rural markets to urban markets. Good storage facilities should also be provided to 697

5 reduce losses during storage and also ensure quality kola nuts for marketing. Center for Research Extension and Development in Africa (SACRED), Kenya, REFERENCES [1] Adedoyin SF (2005). Economics of Agricultural Extension. Journal of Agricultural Extension, [2] Badaru N, Aliyu OM. and Adebola PO (2006). Genetics variability studies in the germplasm collection of kola (kola nitida) in South Western Nigeria PGR Newsletter, [3] Eusebius JM (2004). Improving small holder marketing in Afica: The case of maize Sustainable Agriculture [4] Food and Agriculture Organization (2005). The major significance of minor forest products: Special Report. Forestry Department. [5] National Population Commission (NPC) (2006). National population census figure, Abuja, Nigeria. [6] Uguru MI (1996). Crop Production Tools, Techniques and Practice. Nsukka: Fulladu Publishing Company, ISBN Number ,