Assessment of Income Inequality, Structure and Conduct of Cocoa Marketers in Osun State, Nigeria

Main Article Content

A. I. Olutumise
L. O. Oparinde
O. O. Simon-Oke

Abstract

The level of income inequality and structure-conduct of cocoa marketers were evaluated in Osun State, Nigeria. Primary data were collected with the aid of a well-structured questionnaire, while a multistage sampling procedure was used to select 120 respondents for the study. Descriptive statistics, concentration ratio, Gini coefficient, index of dissimilarity, Herfindahl index; Ordinary Least Square (OLS) as well as Quantile Regression (QR) were used as analytical tools. The result showed the value of Gini coefficient as 0.76, which established a relatively high level of income inequality among cocoa marketers in the study area. The concentration ratio of one, two and four largest marketers in the cocoa marketing business also accounted for 19.2%, 31.9% and 45.8% respectively, of the total volume of cocoa beans sold in the study area, while the value (0.069) of the Herfindahl index further confirmed the presence of low concentration in the market share of cocoa marketers in the study area. The OLS result revealed that household size, education, access to credit, depreciation cost on fixed inputs and labour cost constituted the main factors affecting the income of the marketers, while depreciation cost on fixed inputs and labour cost were consistently significant in OLS and across the conditional quantiles (q25, q50 and q75). Therefore, it is expected that appropriate practical approach in addressing high level of income inequality as identified by the study should be taken by all stakeholders in the industry, with a view to making low-interest credit facilities and incentives available to the marketers in order to increase their scale of operations, and consequently bridge the inequality gap.

Keywords:
Cocoa marketers, income inequality, structure-conduct, Nigeria, quantile regression.

Article Details

How to Cite
Olutumise, A. I., Oparinde, L. O., & Simon-Oke, O. O. (2020). Assessment of Income Inequality, Structure and Conduct of Cocoa Marketers in Osun State, Nigeria. Journal of Scientific Research and Reports, 25(6), 1-12. https://doi.org/10.9734/jsrr/2019/v25i630204
Section
Original Research Article

References

Oseni JO, Olutumise AI, Olutumise BO. Performance evaluation of cocoa marketing in Osun State, Nigeria. Journal of Perspectives on Financing and Regional Development. 2018;6(1):97–112.

Folayan JA, Oguntade, AE, Ogundari, K. Analysis of profitability and operational efficiencies of cocoa marketing: Empirical evidence from Nigeria. Journal of Social Sciences. 2007;15(2):197-199.

Alamu SA. Analysis of seedling subsidy policy and cocoa production in South-West Nigeria. Journal of Educational and Social Research. 2013;3(4):59-62.

Cadoni P. Analysis of incentives and disincentives for cocoa in Nigeria. Technical Note Series, MAFAP, FAO, Rome; 2013.

Nkang NM, Ajah EA, Abang SO, Edet EO. Investment in cocoa production in Nigeria: A cost and return analysis of three cocoa production management systems in the Cross River State cocoa belt. African Journal of Food, Agriculture, Nutrition and Development. 2009;9(2):713–727.
ISSN: 1684 – 5374

Awoyemi TT. Explaining income inequality in Nigeria: A regression based approach. University of Ibadan, Ibadan, Nigeria; 2007.

Yesufu OA, Ayanwale AB. Structure, conduct and profitability of the broiler processing enterprises in Southwest, Nigeria. Learning Publics Journal of Agriculture and Environmental Studies, 2011;2(2):1–20. ISSN-L: 2026–5654.

National Population Commission. Popula-tion and Housing Census of the Federal Republic of Nigeria, Abuja. 2006;1:67- 76.

Taphee BG, Musa YH, Vosanka IP. Economic efficiency of cocoa production in Gashaka local government area, Taraba State, Nigeria. Mediterranean Journal of Social Sciences. 2015;6(1):570-572.

Adams W. The Structure of American Industry, Macmillan Publishing Company; 1977.

Oparinde LO, Ojo SO. Structural performance of artisanal fish marketing in Ondo State, Nigeria. American Journal of Rural Development. 2014;2(1):1-7.

Ehinomowo OO, Simon-Oke OO, Fatuase AI, Ojo SO. Determinants of technical efficiency and income inequality of food vending as a family business in Southwest, Nigeria. Global Business Review. 2017; 18(6):1412–1423.

International Marketing Association (IMA). Quarterly Bulletin of Cocoa Statistics, June. London. 2008;4-5.

Mafimisebi TE, Oguntade AE. Health infrastructure inequality and rural-urban utilization of orthodox and traditional medicines in farming households: A Case study of Ekiti State, Nigeria. Health Management-Different Approaches and Solutions, Dr Krzysztof Smigorski (Ed); 2011.
ISBN: 978-953-307-296-8, InTech.
Available:www.intechopen.com

Caves R. American Industry; structure, conduct and performance. Foundation of Modern Economic Series, Prentice-Hall Washington D.C.USA. 1964;17-30.

Greene WH. Econometric Analysis, 7th ed. Pearson Education Limited, Edinburgh Gate, Harlow, Essex CM202JE, England; 2012.

Koenker R, Basset G. Regressions quantiles. Econometrica. 1978;46:33-50.

Montenegro C. Wage distribution in Chile: Does gender matter? A quantile regression approach. The World Bank Development Research Group/Poverty Reduction and Economic Management Network. Policy Research Report on Gender and Development. Working Paper Series. 2001;20.

Mignouna DB, Abdoulaye T, Alene A, Manyong VM, Dontstop PN, Ainembabazi JH, Asiedu RA. Microeconometric analysis of household consumption expenditure determination in yam-growing areas of Nigeria and Ghana. Tropicultura. 2015; 33(3):226–237.

Abraham F, Opeyemi EA, Babatola OA. Willingness to take agricultural insurance by cocoa farmers in Nigeria. International Journal of Food and Agricultural Economics. 2013;1(1):97-107.
Available:http://www.foodandagriculturejournal.com/97.pdf

Ogunleye KY, Oladeji JO. Choice of Cocoa market channels among cocoa farmers in Ila Local Government Area of Osun State, Nigeria. Middle-East Journal of Scientific Research. 2007;2(1):14-20.

Oseni JO. An appraisal of the structure and conduct of watermelon marketing in Akure Metropolis, Ondo State, Nigeria. Sky Journal of Agricultural Research. 2015; 4(4):080–089.

Farayola CO, Akintaro OS, Yahaya AA, Oni OO. Determinants of marketing efficiency among small-holder cocoa Marketers in Oyo State, Nigeria. International Journal of Management and Social Sciences Research (IJMSSR). 2013;2(11):33–43.

Idowu EO, Osuntogun DA, Oluwasola O. Effects of market deregulation on cocoa (Theobroma cacao) production in South-west Nigeria. African Journal of Agricultural Research. 2007;2(9):429-434.

Fadipe AEA, Adenuga AH, Ilori TE. Economic analysis of cocoa production in Oyo State, Nigeria. Nigerian Journal of Agriculture, Food and Environment. 2012; 8(4):58-63.

Kimengsi JN, Balgah RA, Joseph TN. Improving cocoa processing and marketing for conservation in the mount Cameroon National Park Communities: Challenges and Way Forward. Greener Journal of Social Sciences. 2016;6(1):2-4.

Adebayo, A. Economics: A Simplified Approach. 2nd Edition, Covenant Printers, Lagos; 2013.

Folayan JA, Daramola GA, Oguntade AE. Structure and performance evaluation of cocoa marketing institutions in South Western Nigeria: An economic analysis. Journal of Food, Agriculture and Environmental. 2006;4(2):123-128.