ABSTRACT

Attempts were made in this study to analyse the economics of cocoa marketing in Abia State, using Bende, Ikwuano and Umuahia North Local Government Areas as the case study. Both primary and secondary data were used in accomplishing the study. Primary data were obtained through structured questionnaires which were randomly given to both cocoa farmers and marketers while secondary data were souiced from texts, journal and other research works. A total of 30 cocoa farmers and 15 licensed buying agents (LBAs) were randomly selected. The data realized were analysed using frequency distribution, tables, percentages, gross margins, marketing margin etc. The following findings were made. i. 95% of the cocoa marketed in the State in the year 2000 were evacuated to the Western States of the country.  ii. The licensed buying agents have a marketing margin of approximately 5.5 percentage, which can be improved if the transport sector is improved. iii. The cocoa farmers in the study areas have a positive gross margin, which indicated that cocoa enterprise is profitable. iv. The factors inhibiting cocoa marketing in the State ranged from poor processed cocoa bean, dishonesty of cocoa brokers, price fluctuation among others. While the following factors were militating against cocoa production, high cost of farm inputs like chemicals, annual problem of bush burning resulting in burning of cocoa plantation, old age of cocoa trees, high incidence of pest and diseases and others. Based on the findings, the folloving recommendations were made; Government should ensure adequate provision of transportation, and other marketing infrastructure, particularly, the expansion and maintenance of urban — to- rural and rural- to- urban roads net work, including inter state and intra state road net work, reduction in foreign exchange for importation of V vehicle spare parts and truck to improve transportation of agricultural products. Efforts should be made to ensure availability of fuel all the year round. Government should create cocoa marketing department within the ministry of commerce and industry to prescribe appropriate rules and regulations, including policy to guide and regulate the cocoa marketing system and ensure effectiveness and efficiency. The cocoa farmers and cocoa marketers should be encouraged to form or join cooperative societies this is likely to be gainful now that cocoa marketing board is not functioning. This will go along way to help to solve the problen1 of inadequate funding. Government should help to subsidize the price of chemicals and make them available at affordable prices to the farmers.

TABLE OF CONTENT

Title I

Declaration/certification ii

Dedication.. iii

Acknowledgement.. iv

Abstract.. v

Table of Content.. vii

CHAPTER ONE 1

1.0 Introduction 1

.1 Background Information.. 1-3

1.2 Objective of the Study 3

1.3 Statement of Problem.. 4

1.4 Significance of the Study.. 4

1.5 Organization of the study.. 5

CHAPTER TWO 6

2.0 Literature Review.. 6

2.1 Marketing 6-7

2.2 Market 7

2.3 Marketing Efficiency 7-8

2.4 Marketing Margin.. 8

2.5 Marketing Cost.. 9

2.6 Nigeria Cocoa Marketing Board.. 10-14

2.7 Market Liberalization 14-16

2.8 Volume of cocoa consigned to other states

from Abia State, from 1993 to 1999 16

2.9 Status of cocoa in Nigeria 16-20

2. 10 Contribution of cocoa to Agricultural Export 20-21

2.1 0 Contribution of cocoa to Agricultural Export 20-2 1

CHAPTER THREE 22

3.0 Research Methodology 22

3.1 Area of Study.. 22

3.2 Sampling Procedure 22-23

3.3 Method of Data Analysis 23-24

3.4 Problem and Limitation of the Data 23-24

4.0 Result and Discussion 26

4.1 Market Operators 26-27

4.2 Gender Distribution of LBAs 28

4.3 Level of Education of the LBAs 28

4.4 Distribution of Age of the cocoa farmers 31

4.5 Distribution of Respondents' level of Education 32

4.6 Distribution of farmers method of plantation acquisition 32

4.7 Source of fund of the LBAs 29

4.8 Outlets through which cocoa exit from the State 29-30

4.9 Marketing margin of Licensed Buying Agents 30-31

4. 10 Distribution of farmers and LBAs on re-introduction

of Cocoa Board.. 33

4. 11 Gross margin of the cocoa farmer 33-34

4.12 Sources of cocoa bean supplied for the LBAs 34-3 5

4.13 Constraints Encountered in marketing and

production of cocoa.. 35-37

CHAPTER FIVE 38

5.0 Recommendation, Summary and Conclusion... .. 38

5. I Recommendation.. .. 38-39

5.2 Summary. and Conclusion... 39-40

References 40-41